QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - NYSE:NX - US7476191041 - Common Stock
14.62 USD
+0.28 (+1.95%)
14.5 USD
-0.12 (-0.82%)
Taking everything into account, NX scores 4 out of 10 in our fundamental rating. NX was compared to 41 industry peers in the Building Products industry. NX has a bad profitability rating. Also its financial health evaluation is rather negative. NX has a correct valuation and a medium 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 -14.41%, NX is doing worse than 85.37% of the companies in the same industry.
The Return On Equity of NX (-39.63%) is worse than 82.93% of its industry peers.
With a Return On Invested Capital value of 3.54%, NX is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
NX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is below the industry average of 12.70%.
The last Return On Invested Capital (3.54%) 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 | -14.41% | ||
| ROE | -39.63% | ||
| ROIC | 3.54% |
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's Profit Margin has declined in the last couple of years.
NX has a Operating Margin of 4.02%. This is in the lower half of the industry: NX underperforms 78.05% of its industry peers.
NX's Operating Margin has declined in the last couple of years.
NX's Gross Margin of 26.02% is on the low side compared to the rest of the industry. NX is outperformed by 65.85% 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 | 4.02% | ||
| PM (TTM) | N/A | ||
| GM | 26.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NX is creating some value.
Compared to 1 year ago, NX has more shares outstanding
Compared to 5 years ago, NX has more shares outstanding
NX has a worse debt/assets ratio than last year.
2.2 Solvency
NX has an Altman-Z score of 1.67. This is a bad value and indicates that NX is not financially healthy and even has some risk of bankruptcy.
NX has a worse Altman-Z score (1.67) than 87.80% of its industry peers.
The Debt to FCF ratio of NX is 26.28, which is on the high side as it means it would take NX, 26.28 years of fcf income to pay off all of its debts.
NX's Debt to FCF ratio of 26.28 is on the low side compared to the rest of the industry. NX is outperformed by 70.73% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that NX is somewhat dependend on debt financing.
NX has a Debt to Equity ratio of 0.97. This is in the lower half of the industry: NX underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.43
WACC8.25%
2.3 Liquidity
A Current Ratio of 2.20 indicates that NX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.20, 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 1.18. This is a normal value and indicates that NX is financially healthy and should not expect problems in meeting its short term obligations.
NX's Quick ratio of 1.18 is in line compared to the rest of the industry. NX outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
NX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.06%.
Measured over the past years, NX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.07% on average per year.
Looking at the last year, NX shows a very strong growth in Revenue. The Revenue has grown by 70.18%.
Measured over the past years, NX shows a small growth in Revenue. The Revenue has been growing by 7.41% on average per year.
EPS 1Y (TTM)-17.06%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-5.48%
Revenue 1Y (TTM)70.18%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%76.67%
3.2 Future
Based on estimates for the next years, NX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
The Revenue is expected to grow by 13.96% on average over the next years. This is quite good.
EPS Next Y-4.8%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.00, which indicates a rather cheap valuation of NX.
NX's Price/Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 100.00% of the companies in the same industry.
NX is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.44 indicates a rather cheap valuation of NX.
100.00% of the companies in the same industry are more expensive than NX, based on the Price/Forward Earnings ratio.
NX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
NX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NX is cheaper than 95.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.41 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y2.07%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.28%, NX has a reasonable but not impressive dividend return.
In the last 3 months the price of NX has falen by -20.67%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.24, NX pays a better dividend. On top of this NX pays more dividend than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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
The earnings of NX are negative and hence is the payout ratio. NX will probably not be able to sustain this dividend level.
DP-5.37%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
14.62
+0.28 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change-0.04%
Ins Owners1.03%
Ins Owner Change0.77%
Market Cap670.77M
Analysts86
Price Target28.56 (95.35%)
Short Float %4.43%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP-5.37%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-20.49%
Max EPS beat(2)23.29%
EPS beat(4)3
Avg EPS beat(4)949.59%
Min EPS beat(4)-20.49%
Max EPS beat(4)3789.32%
EPS beat(8)7
Avg EPS beat(8)489.34%
EPS beat(12)10
Avg EPS beat(12)334.51%
EPS beat(16)14
Avg EPS beat(16)260.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)1.67%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)8
Avg Revenue beat(16)0.72%
PT rev (1m)-17.04%
PT rev (3m)-17.04%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-46.08%
EPS NY rev (1m)-22.87%
EPS NY rev (3m)-22.87%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-6.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 6.44 | ||
| P/S | 0.36 | ||
| P/FCF | 24.41 | ||
| P/OCF | 8.17 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.33 |
EPS(TTM)2.09
EY14.3%
EPS(NY)2.27
Fwd EY15.53%
FCF(TTM)0.6
FCFY4.1%
OCF(TTM)1.79
OCFY12.24%
SpS40.1
BVpS15.64
TBVpS-2.46
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -39.63% | ||
| ROCE | 4.33% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 7.46% | ||
| OM | 4.02% | ||
| PM (TTM) | N/A | ||
| GM | 26.02% | ||
| FCFM | 1.49% |
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-Score4
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 51.97% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.67 |
F-Score4
WACC8.25%
ROIC/WACC0.43
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)-17.06%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-5.48%
EPS Next Y-4.8%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)70.18%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%76.67%
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
Revenue Next 5YN/A
EBIT growth 1Y-25.97%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year105.68%
EBIT Next 3Y33.72%
EBIT Next 5YN/A
FCF growth 1Y-76.02%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-45.5%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%