QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NX - US7476191041 - Common Stock
17.81 USD
+0.11 (+0.62%)
17.81 USD
0 (0%)
Taking everything into account, NX scores 4 out of 10 in our fundamental rating. NX was compared to 42 industry peers in the Building Products industry. Both the profitability and financial health of NX have multiple concerns. NX may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years NX 4 years were profitable.
Each year in the past 5 years NX had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -12.74%, NX is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -34.54%, NX is doing worse than 85.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.52%, NX is doing worse than 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NX is significantly below the industry average of 12.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.74% | ||
| ROE | -34.54% | ||
| ROIC | 5.52% |
ROA(3y)-0.46%
ROA(5y)3.75%
ROE(3y)-5.38%
ROE(5y)3.29%
ROIC(3y)6.69%
ROIC(5y)9.3%
1.3 Margins
NX has a worse Operating Margin (6.45%) than 71.43% of its industry peers.
NX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 27.17%, NX is doing worse than 61.90% of the companies in the same industry.
In the last couple of years the Gross Margin of NX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 27.17% |
OM growth 3Y-10.87%
OM growth 5Y-0.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y3.71%
2. Health
2.1 Basic Checks
NX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NX has less shares outstanding than it did 1 year ago.
NX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NX is higher compared to a year ago.
2.2 Solvency
NX has an Altman-Z score of 1.82. This is not the best score and indicates that NX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.82, NX is doing worse than 85.71% of the companies in the same industry.
NX has a debt to FCF ratio of 6.78. This is a slightly negative value and a sign of low solvency as NX would need 6.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.78, NX is in line with its industry, outperforming 40.48% of the companies in the same industry.
NX has a Debt/Equity ratio of 0.92. This is a neutral value indicating NX is somewhat dependend on debt financing.
NX has a worse Debt to Equity ratio (0.92) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.78 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.56
WACC9.93%
2.3 Liquidity
NX has a Current Ratio of 2.04. 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 2.04, NX is in line with its industry, outperforming 59.52% of the companies in the same industry.
NX has a Quick Ratio of 1.14. This is a normal value and indicates that NX is financially healthy and should not expect problems in meeting its short term obligations.
NX has a Quick ratio of 1.14. This is comparable to the rest of the industry: NX outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.96% over the past year.
NX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.25% yearly.
NX shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.81%.
NX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.63% yearly.
EPS 1Y (TTM)5.96%
EPS 3Y-4.83%
EPS 5Y13.25%
EPS Q2Q%36.07%
Revenue 1Y (TTM)43.81%
Revenue growth 3Y14.58%
Revenue growth 5Y16.63%
Sales Q2Q%-0.47%
3.2 Future
Based on estimates for the next years, NX will show a small growth in Earnings Per Share. The EPS will grow by 3.82% on average per year.
The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y-6.48%
EPS Next 2Y3.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.23%
Revenue Next 2Y1.75%
Revenue Next 3YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NX is valuated cheaply with a Price/Earnings ratio of 7.71.
NX's Price/Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 97.62% 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.
The Price/Forward Earnings ratio is 8.24, which indicates a very decent valuation of NX.
Based on the Price/Forward Earnings ratio, NX is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, NX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NX is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
NX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NX is cheaper than 97.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y3.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
NX's Dividend Yield is rather good when compared to the industry average which is at 0.70. NX pays more dividend than 92.86% of the companies in the same industry.
NX's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of NX has a limited annual growth rate of 0.08%.
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)0.08%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
NX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of NX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-5.94%
EPS Next 2Y3.82%
EPS Next 3YN/A
17.81
+0.11 (+0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners101.37%
Inst Owner Change0.02%
Ins Owners1.27%
Ins Owner Change11.64%
Market Cap817.12M
Revenue(TTM)1.84B
Net Income(TTM)-250.81M
Analysts86
Price Target28.56 (60.36%)
Short Float %6.64%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.32
Dividend Growth(5Y)0.08%
DP-5.94%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.99%
Min EPS beat(2)-20.49%
Max EPS beat(2)56.47%
EPS beat(4)3
Avg EPS beat(4)962.15%
Min EPS beat(4)-20.49%
Max EPS beat(4)3789.32%
EPS beat(8)7
Avg EPS beat(8)492.35%
EPS beat(12)10
Avg EPS beat(12)337.36%
EPS beat(16)14
Avg EPS beat(16)262.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-2.2%
Max Revenue beat(4)1.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-146%
EPS NQ rev (3m)-146%
EPS NY rev (1m)-4.88%
EPS NY rev (3m)-4.88%
Revenue NQ rev (1m)3.39%
Revenue NQ rev (3m)3.39%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 8.24 | ||
| P/S | 0.44 | ||
| P/FCF | 7.99 | ||
| P/OCF | 4.96 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.44 |
EPS(TTM)2.31
EY12.97%
EPS(NY)2.16
Fwd EY12.13%
FCF(TTM)2.23
FCFY12.51%
OCF(TTM)3.59
OCFY20.18%
SpS40.05
BVpS15.83
TBVpS-2.06
PEG (NY)N/A
PEG (5Y)0.58
Graham Number28.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.74% | ||
| ROE | -34.54% | ||
| ROCE | 7.03% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 11.78% | ||
| OM | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 27.17% | ||
| FCFM | 5.56% |
ROA(3y)-0.46%
ROA(5y)3.75%
ROE(3y)-5.38%
ROE(5y)3.29%
ROIC(3y)6.69%
ROIC(5y)9.3%
ROICexc(3y)7.19%
ROICexc(5y)10.09%
ROICexgc(3y)13.35%
ROICexgc(5y)17.83%
ROCE(3y)8.51%
ROCE(5y)11.84%
ROICexgc growth 3Y-23.91%
ROICexgc growth 5Y-6.21%
ROICexc growth 3Y-29.51%
ROICexc growth 5Y-7.67%
OM growth 3Y-10.87%
OM growth 5Y-0.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.32%
GM growth 5Y3.71%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.78 | ||
| Debt/EBITDA | 3 | ||
| Cap/Depr | 60.56% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 74.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.82 |
F-Score5
WACC9.93%
ROIC/WACC0.56
Cap/Depr(3y)69.75%
Cap/Depr(5y)69.6%
Cap/Sales(3y)3.21%
Cap/Sales(5y)2.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.96%
EPS 3Y-4.83%
EPS 5Y13.25%
EPS Q2Q%36.07%
EPS Next Y-6.48%
EPS Next 2Y3.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)43.81%
Revenue growth 3Y14.58%
Revenue growth 5Y16.63%
Sales Q2Q%-0.47%
Revenue Next Year1.23%
Revenue Next 2Y1.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y101.2%
EBIT growth 3Y2.12%
EBIT growth 5Y16.22%
EBIT Next Year37.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y97.69%
FCF growth 3Y16.4%
FCF growth 5Y6.37%
OCF growth 1Y85.67%
OCF growth 3Y18.95%
OCF growth 5Y10.34%
QUANEX BUILDING PRODUCTS / NX FAQ
Can you provide the ChartMill fundamental rating for QUANEX BUILDING PRODUCTS?
ChartMill assigns a fundamental rating of 4 / 10 to NX.
Can you provide the valuation status for QUANEX BUILDING PRODUCTS?
ChartMill assigns a valuation rating of 7 / 10 to QUANEX BUILDING PRODUCTS (NX). This can be considered as Undervalued.
Can you provide the profitability details for QUANEX BUILDING PRODUCTS?
QUANEX BUILDING PRODUCTS (NX) has a profitability rating of 3 / 10.
How financially healthy is QUANEX BUILDING PRODUCTS?
The financial health rating of QUANEX BUILDING PRODUCTS (NX) is 3 / 10.
What is the earnings growth outlook for QUANEX BUILDING PRODUCTS?
The Earnings per Share (EPS) of QUANEX BUILDING PRODUCTS (NX) is expected to decline by -6.48% in the next year.