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 42 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year NX was profitable.
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 Return On Assets of 0.74%. This is in the lower half of the industry: NX underperforms 76.19% of its industry peers.
NX has a worse Return On Equity (1.70%) than 73.81% of its industry peers.
NX has a worse Return On Invested Capital (2.56%) than 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NX is below the industry average of 12.62%.
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 76.19% of its industry peers.
NX's Profit Margin has declined in the last couple of years.
The Operating Margin of NX (3.98%) is worse than 78.57% of its industry peers.
NX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.33%, NX is doing worse than 69.05% of the companies in the same industry.
NX's Gross Margin has been stable in the last couple of years.
| 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
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.
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 1.66. This is a bad value and indicates that NX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NX (1.66) is worse than 85.71% of its industry peers.
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.
NX has a Debt to FCF ratio of 36.09. This is in the lower half of the industry: NX underperforms 73.81% of its industry peers.
NX has a Debt/Equity ratio of 0.75. This is a neutral value indicating NX is somewhat dependend on debt financing.
NX has a Debt to Equity ratio of 0.75. This is in the lower half of the industry: NX underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 36.09 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.28
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.41 indicates that NX has no problem at all paying 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 61.90% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that NX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.26, NX perfoms like the industry average, outperforming 50.00% 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%.
NX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
NX shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.66%.
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)-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
The Earnings Per Share is expected to grow by 16.04% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 9.52, the valuation of NX can be described as reasonable.
NX's Price/Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 95.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of NX to the average of the S&P500 Index (27.30), we can say NX is valued rather cheaply.
NX is valuated cheaply with a Price/Forward Earnings ratio of 6.91.
NX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 100.00% of the companies in the same industry.
NX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 6.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NX is valued a bit cheaper than 69.05% of the companies in the same industry.
66.67% of the companies in the same industry are cheaper than NX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.55 | ||
| EV/EBITDA | 11.18 |
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.
NX's earnings are expected to grow with 16.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.53
EPS Next 2Y16.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.12, NX pays a better dividend. On top of this NX pays more dividend than 88.10% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, NX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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
20.28
-0.59 (-2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners105.19%
Inst Owner Change0%
Ins Owners1.02%
Ins Owner Change0%
Market Cap932.27M
Analysts86
Price Target34.42 (69.72%)
Short Float %4.65%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)2.15%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 6.91 | ||
| P/S | 0.57 | ||
| P/FCF | 43.55 | ||
| P/OCF | 13.74 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.18 |
EPS(TTM)2.13
EY10.5%
EPS(NY)2.94
Fwd EY14.47%
FCF(TTM)0.47
FCFY2.3%
OCF(TTM)1.48
OCFY7.28%
SpS35.35
BVpS21.79
TBVpS-3.15
PEG (NY)0.41
PEG (5Y)0.53
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 | 1.66 |
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%