QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
NYSE:NX - New York Stock Exchange, Inc. - US7476191041 - Common Stock - Currency: USD
Overall NX gets a fundamental rating of 4 out of 10. We evaluated NX against 41 industry peers in the Building Products industry. NX may be in some trouble as it scores bad on both profitability and health. NX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NX had positive earnings in the past year.
In the past year NX had a positive cash flow from operations.
In the past 5 years NX has always been profitable.
Each year in the past 5 years NX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.74%, NX is doing worse than 75.61% of the companies in the same industry.
The Return On Equity of NX (1.70%) is worse than 73.17% of its industry peers.
The Return On Invested Capital of NX (2.56%) is worse than 78.05% of its industry peers.
NX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is below the industry average of 12.81%.
The last Return On Invested Capital (2.56%) for NX is well below the 3 year average (10.24%), which needs to be investigated, but indicates that NX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1.7% | ||
| ROIC | 2.56% |
ROA(3y)7.85%
ROA(5y)7.41%
ROE(3y)12.47%
ROE(5y)12.36%
ROIC(3y)10.24%
ROIC(5y)10.17%
1.3 Margins
NX has a Profit Margin of 1.05%. This is in the lower half of the industry: NX underperforms 75.61% of its industry peers.
NX's Profit Margin has declined in the last couple of years.
NX's Operating Margin of 3.98% is on the low side compared to the rest of the industry. NX is outperformed by 78.05% of its industry peers.
In the last couple of years the Operating Margin of NX has declined.
NX has a Gross Margin of 25.33%. This is in the lower half of the industry: NX underperforms 68.29% of its industry peers.
In the last couple of years the Gross Margin of NX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.98% | ||
| PM (TTM) | 1.05% | ||
| GM | 25.33% |
OM growth 3Y-18.09%
OM growth 5Y-5.04%
PM growth 3Y-21.34%
PM growth 5YN/A
GM growth 3Y2.14%
GM growth 5Y1.4%
2. Health
2.1 Basic Checks
NX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NX has been increased compared to 5 years ago.
NX has a worse debt/assets ratio than last year.
2.2 Solvency
NX has an Altman-Z score of 1.62. This is a bad value and indicates that NX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.62, NX is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
NX has a debt to FCF ratio of 36.09. This is a negative value and a sign of low solvency as NX would need 36.09 years to pay back of all of its debts.
With a Debt to FCF ratio value of 36.09, NX is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
NX has a Debt/Equity ratio of 0.75. This is a neutral value indicating NX is somewhat dependend on debt financing.
The Debt to Equity ratio of NX (0.75) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 36.09 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.28
WACC9.12%
2.3 Liquidity
NX has a Current Ratio of 2.41. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.41, NX is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
NX has a Quick Ratio of 1.26. This is a normal value and indicates that NX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.26, NX is in line with its industry, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
NX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.83%.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
NX shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.66%.
The Revenue has been growing slightly by 7.41% on average over the past years.
EPS 1Y (TTM)-22.83%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)47.66%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%69.98%
3.2 Future
NX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.04% yearly.
The Revenue is expected to grow by 22.12% on average over the next years. This is a very strong growth
EPS Next Y23.43%
EPS Next 2Y16.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year44.79%
Revenue Next 2Y22.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.65, which indicates a very decent valuation of NX.
Based on the Price/Earnings ratio, NX is valued cheaper than 97.56% of the companies in the same industry.
NX is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.28, the valuation of NX can be described as very cheap.
Based on the Price/Forward Earnings ratio, NX is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. NX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 6.28 |
4.2 Price Multiples
NX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NX is cheaper than 70.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NX is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.58 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
NX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NX's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)0.37
PEG (5Y)0.48
EPS Next 2Y16.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 1.14, NX pays a better dividend. On top of this NX pays more dividend than 87.80% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, NX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of NX decreases each year by -1.38%.
NX has been paying a dividend for at least 10 years, so it has a reliable track record.
NX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.38%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
83.40% of the earnings are spent on dividend by NX. This is not a sustainable payout ratio.
DP83.4%
EPS Next 2Y16.04%
EPS Next 3YN/A
18.43
-0.41 (-2.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners105.19%
Inst Owner Change-0.08%
Ins Owners1.02%
Ins Owner Change0%
Market Cap847.23M
Analysts86
Price Target34.42 (86.76%)
Short Float %4.61%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP83.4%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1906.3%
Min EPS beat(2)23.29%
Max EPS beat(2)3789.32%
EPS beat(4)4
Avg EPS beat(4)954.84%
Min EPS beat(4)0.53%
Max EPS beat(4)3789.32%
EPS beat(8)8
Avg EPS beat(8)497.51%
EPS beat(12)11
Avg EPS beat(12)338.36%
EPS beat(16)14
Avg EPS beat(16)260.9%
Revenue beat(2)1
Avg Revenue beat(2)0.83%
Min Revenue beat(2)0%
Max Revenue beat(2)1.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)1.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)5
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.84%
PT rev (1m)-2.88%
PT rev (3m)4.38%
EPS NQ rev (1m)-2.03%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 6.28 | ||
| P/S | 0.52 | ||
| P/FCF | 39.58 | ||
| P/OCF | 12.49 | ||
| P/B | 0.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.6 |
EPS(TTM)2.13
EY11.56%
EPS(NY)2.94
Fwd EY15.93%
FCF(TTM)0.47
FCFY2.53%
OCF(TTM)1.48
OCFY8.01%
SpS35.35
BVpS21.79
TBVpS-3.15
PEG (NY)0.37
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1.7% | ||
| ROCE | 3.13% | ||
| ROIC | 2.56% | ||
| ROICexc | 2.64% | ||
| ROICexgc | 6.18% | ||
| OM | 3.98% | ||
| PM (TTM) | 1.05% | ||
| GM | 25.33% | ||
| FCFM | 1.32% |
ROA(3y)7.85%
ROA(5y)7.41%
ROE(3y)12.47%
ROE(5y)12.36%
ROIC(3y)10.24%
ROIC(5y)10.17%
ROICexc(3y)11.21%
ROICexc(5y)11.1%
ROICexgc(3y)19.09%
ROICexgc(5y)19.49%
ROCE(3y)12.52%
ROCE(5y)12.43%
ROICexcg growth 3Y-37.63%
ROICexcg growth 5Y-18.59%
ROICexc growth 3Y-44.12%
ROICexc growth 5Y-22.16%
OM growth 3Y-18.09%
OM growth 5Y-5.04%
PM growth 3Y-21.34%
PM growth 5YN/A
GM growth 3Y2.14%
GM growth 5Y1.4%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 36.09 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 56.5% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.2% | ||
| Profit Quality | 125.46% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.62 |
F-Score6
WACC9.12%
ROIC/WACC0.28
Cap/Depr(3y)77.09%
Cap/Depr(5y)68.38%
Cap/Sales(3y)2.97%
Cap/Sales(5y)2.84%
Profit Quality(3y)120.93%
Profit Quality(5y)130.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.83%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-9.09%
EPS Next Y23.43%
EPS Next 2Y16.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)47.66%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%69.98%
Revenue Next Year44.79%
Revenue Next 2Y22.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-43.3%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year139.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-79.4%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-50.94%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%