QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NX - US7476191041 - Common Stock
18.51 USD
-0.05 (-0.27%)
18.51 USD
0 (0%)
Overall NX gets a fundamental rating of 4 out of 10. We evaluated NX against 42 industry peers in the Building Products industry. NX has a bad profitability rating. Also its financial health evaluation is rather negative. NX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year NX was profitable.
- In the past year NX had a positive cash flow from operations.
- Of the past 5 years NX 4 years were profitable.
- NX had a positive operating cash flow in each of the past 5 years.
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.
- NX's Return On Invested Capital of 5.52% is on the low side compared to the rest of the industry. NX is outperformed by 71.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NX is significantly below the industry average of 12.68%.
| 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
- With a Operating Margin value of 6.45%, NX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- NX's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 27.17%, NX is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
- NX's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NX is destroying value.
- The number of shares outstanding for NX has been reduced compared to 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
- An Altman-Z score of 1.84 indicates that NX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of NX (1.84) is worse than 85.71% of its industry peers.
- The Debt to FCF ratio of NX is 6.78, which is on the high side as it means it would take NX, 6.78 years of fcf income to pay off all of its debts.
- NX has a Debt to FCF ratio of 6.78. This is comparable to the rest of the industry: NX outperforms 40.48% of its industry peers.
- A Debt/Equity ratio of 0.92 indicates that NX is somewhat dependend on debt financing.
- NX's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. NX is outperformed by 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 6.78 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.59
WACC9.34%
2.3 Liquidity
- A Current Ratio of 2.04 indicates that NX has no problem at all paying 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 (1.14) which is in line with 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.
- Looking at the last year, NX shows a very strong growth in Revenue. The Revenue has grown by 43.81%.
- Measured over the past years, NX shows a quite strong growth in Revenue. The Revenue has been growing by 16.63% on average per year.
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
- The Earnings Per Share is expected to grow by 3.82% on average over the next years.
- 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
- Based on the Price/Earnings ratio of 8.01, the valuation of NX can be described as reasonable.
- 97.62% 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 28.87. NX is valued rather cheaply when compared to this.
- NX is valuated reasonably with a Price/Forward Earnings ratio of 8.57.
- 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 25.96. NX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NX is valued cheaper than 95.24% of the companies in the same industry.
- 97.62% of the companies in the same industry are more expensive than NX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y3.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- NX has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.66, NX pays a better dividend. On top of this NX pays more dividend than 85.71% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, NX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
- The dividend of NX has a limited annual growth rate of 0.08%.
- 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)0.08%
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.
- NX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-5.94%
EPS Next 2Y3.82%
EPS Next 3YN/A
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.