QUANEX BUILDING PRODUCTS (NX)
US7476191041 - Common Stock
Taking everything into account, NX scores 4 out of 10 in our fundamental rating. NX was compared to 39 industry peers in the Building Products industry. NX may be in some trouble as it scores bad on both profitability and health. NX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NX had positive earnings in the past year.
NX had a positive operating cash flow in the past year.
NX had positive earnings in each of the past 5 years.
In the past 5 years NX always reported a positive cash flow from operatings.
1.2 Ratios
NX has a worse Return On Assets (1.43%) than 84.62% of its industry peers.
NX has a worse Return On Equity (3.27%) than 79.49% of its industry peers.
NX has a Return On Invested Capital of 2.27%. This is amonst the worse of the industry: NX underperforms 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NX is below the industry average of 13.33%.
The 3 year average ROIC (9.89%) for NX is well above the current ROIC(2.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 3.27% | ||
| ROIC | 2.27% |
ROA(3y)7.85%
ROA(5y)7.41%
ROE(3y)12.47%
ROE(5y)12.36%
ROIC(3y)9.89%
ROIC(5y)9.82%
1.3 Margins
Looking at the Profit Margin, with a value of 2.59%, NX is doing worse than 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of NX has declined.
NX has a Operating Margin of 4.61%. This is in the lower half of the industry: NX underperforms 79.49% of its industry peers.
In the last couple of years the Operating Margin of NX has declined.
Looking at the Gross Margin, with a value of 23.92%, NX is doing worse than 71.79% of the companies in the same industry.
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 | 4.61% | ||
| PM (TTM) | 2.59% | ||
| GM | 23.92% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NX is still creating some value.
NX has more shares outstanding than it did 1 year ago.
NX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that NX is in the distress zone and has some risk of bankruptcy.
NX has a Altman-Z score of 1.61. This is amonst the worse of the industry: NX underperforms 89.74% of its industry peers.
NX has a debt to FCF ratio of 14.75. This is a negative value and a sign of low solvency as NX would need 14.75 years to pay back of all of its debts.
NX has a Debt to FCF ratio of 14.75. This is in the lower half of the industry: NX underperforms 79.49% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that NX is somewhat dependend on debt financing.
NX has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: NX underperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 14.75 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.24
WACC9.28%
2.3 Liquidity
NX has a Current Ratio of 2.24. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NX (2.24) is better than 61.54% of its industry peers.
NX has a Quick Ratio of 1.23. 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 1.23 is in line compared to the rest of the industry. NX outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
NX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.01%.
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.
NX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.03%.
The Revenue has been growing slightly by 7.41% on average over the past years.
EPS 1Y (TTM)-21.01%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-35.79%
Revenue 1Y (TTM)13.03%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%66.56%
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 11.68% on average per year.
NX is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.58% yearly.
EPS Next Y10.87%
EPS Next 2Y11.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year47.6%
Revenue Next 2Y22.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 11.55 indicates a reasonable valuation of NX.
82.05% of the companies in the same industry are more expensive than NX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.54. NX is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.42, which indicates a very decent valuation of NX.
Based on the Price/Forward Earnings ratio, NX is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.99. NX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NX is on the same level as its industry peers.
NX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23 | ||
| EV/EBITDA | 15.56 |
4.3 Compensation for Growth
NX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.06
PEG (5Y)0.64
EPS Next 2Y11.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, NX has a reasonable but not impressive dividend return.
NX's Dividend Yield is rather good when compared to the industry average which is at 1.07. NX pays more dividend than 82.05% of the companies in the same industry.
With a Dividend Yield of 1.38, NX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of NX decreases each year by -1.38%.
NX has paid a dividend for at least 10 years, which is 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 Years14
5.3 Sustainability
NX pays out 36.21% of its income as dividend. This is a sustainable payout ratio.
DP36.21%
EPS Next 2Y11.68%
EPS Next 3YN/A
QUANEX BUILDING PRODUCTS
NYSE:NX (12/24/2024, 7:29:06 PM)
After market: 25.18 0 (0%)25.18
+0.14 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.07%
Inst Owner Change21.27%
Ins Owners0.81%
Ins Owner Change10.31%
Market Cap1.19B
Analysts86
Price Target38.76 (53.93%)
Short Float %3.17%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)-1.38%
DP36.21%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.14%
Min EPS beat(2)0.53%
Max EPS beat(2)5.76%
EPS beat(4)4
Avg EPS beat(4)22.44%
Min EPS beat(4)0.53%
Max EPS beat(4)62.56%
EPS beat(8)7
Avg EPS beat(8)24.91%
EPS beat(12)11
Avg EPS beat(12)29.59%
EPS beat(16)14
Avg EPS beat(16)44.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.88%
Max Revenue beat(4)0.33%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)6
Avg Revenue beat(12)0.84%
Revenue beat(16)9
Avg Revenue beat(16)2.28%
PT rev (1m)-3.18%
PT rev (3m)-3.18%
EPS NQ rev (1m)40.63%
EPS NQ rev (3m)40.63%
EPS NY rev (1m)0.72%
EPS NY rev (3m)-8.09%
Revenue NQ rev (1m)75.76%
Revenue NQ rev (3m)75.76%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)69.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.93 | ||
| P/FCF | 23 | ||
| P/OCF | 13.4 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.56 |
EPS(TTM)2.18
EY8.66%
EPS(NY)2.42
Fwd EY9.6%
FCF(TTM)1.09
FCFY4.35%
OCF(TTM)1.88
OCFY7.46%
SpS27.04
BVpS21.39
TBVpS-3.43
PEG (NY)1.06
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 3.27% | ||
| ROCE | 2.88% | ||
| ROIC | 2.27% | ||
| ROICexc | 2.39% | ||
| ROICexgc | 5.99% | ||
| OM | 4.61% | ||
| PM (TTM) | 2.59% | ||
| GM | 23.92% | ||
| FCFM | 4.05% |
ROA(3y)7.85%
ROA(5y)7.41%
ROE(3y)12.47%
ROE(5y)12.36%
ROIC(3y)9.89%
ROIC(5y)9.82%
ROICexc(3y)10.83%
ROICexc(5y)10.72%
ROICexgc(3y)18.44%
ROICexgc(5y)18.83%
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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 14.75 | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 61.47% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 5.4 | ||
| Cash Conversion | 74.48% | ||
| Profit Quality | 156.47% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.61 |
F-Score4
WACC9.28%
ROIC/WACC0.24
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)-21.01%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-35.79%
EPS Next Y10.87%
EPS Next 2Y11.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.03%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%66.56%
Revenue Next Year47.6%
Revenue Next 2Y22.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-46.79%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year146.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-52.83%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-39.6%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%