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 40 industry peers in the Building Products industry. Both the profitability and financial health of NX have multiple concerns. 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.
In the past year NX had a positive cash flow from operations.
In the past 5 years NX has always been profitable.
In the past 5 years NX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.43%, NX is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
NX has a Return On Equity of 3.27%. This is in the lower half of the industry: NX underperforms 77.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.27%, NX is doing worse than 80.00% of the companies in the same industry.
NX had an Average Return On Invested Capital over the past 3 years of 9.89%. This is below the industry average of 13.20%.
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
The Profit Margin of NX (2.59%) is worse than 77.50% of its industry peers.
In the last couple of years the Profit Margin of NX has declined.
The Operating Margin of NX (4.61%) is worse than 77.50% of its industry peers.
NX's Operating Margin has declined in the last couple of years.
NX has a Gross Margin of 23.92%. This is in the lower half of the industry: NX underperforms 75.00% of its industry peers.
NX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, NX has more shares outstanding
NX has more shares outstanding than it did 5 years ago.
NX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that NX is in the distress zone and has some risk of bankruptcy.
NX's Altman-Z score of 1.51 is on the low side compared to the rest of the industry. NX is outperformed by 87.50% of its industry peers.
The Debt to FCF ratio of NX is 14.75, which is on the high side as it means it would take NX, 14.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NX (14.75) is worse than 80.00% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that NX is somewhat dependend on debt financing.
The Debt to Equity ratio of NX (0.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 14.75 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.24
WACC9.48%
2.3 Liquidity
A Current Ratio of 2.24 indicates that NX has no problem at all paying its short term obligations.
NX's Current ratio of 2.24 is in line compared to the rest of the industry. NX outperforms 57.50% 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.
The Quick ratio of NX (1.23) is comparable to the rest of the industry.
| 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.
The Revenue has grown by 13.03% in the past year. This is quite good.
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
NX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.53% yearly.
The Revenue is expected to grow by 22.05% on average over the next years. This is a very strong growth
EPS Next Y14.81%
EPS Next 2Y15.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year44.79%
Revenue Next 2Y22.05%
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
NX is valuated reasonably with a Price/Earnings ratio of 9.35.
Based on the Price/Earnings ratio, NX is valued cheaply inside the industry as 92.50% of the companies are valued more expensively.
NX is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.14, the valuation of NX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, NX is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. NX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.14 |
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 | 18.6 | ||
| EV/EBITDA | 13.65 |
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.
A more expensive valuation may be justified as NX's earnings are expected to grow with 15.53% in the coming years.
PEG (NY)0.63
PEG (5Y)0.52
EPS Next 2Y15.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, NX has a reasonable but not impressive dividend return.
In the last 3 months the price of NX has falen by -34.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NX's Dividend Yield is rather good when compared to the industry average which is at 1.11. NX pays more dividend than 85.00% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.27, NX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 Years14
5.3 Sustainability
36.21% of the earnings are spent on dividend by NX. This is a low number and sustainable payout ratio.
DP36.21%
EPS Next 2Y15.53%
EPS Next 3YN/A
20.38
-0.35 (-1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.31%
Inst Owner Change-94.8%
Ins Owners0.99%
Ins Owner Change10.56%
Market Cap962.14M
Analysts86
Price Target37.23 (82.68%)
Short Float %5.25%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP36.21%
Div Incr Years0
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.38%
Min EPS beat(2)0.53%
Max EPS beat(2)6.23%
EPS beat(4)4
Avg EPS beat(4)22.56%
Min EPS beat(4)0.53%
Max EPS beat(4)62.56%
EPS beat(8)7
Avg EPS beat(8)24.97%
EPS beat(12)11
Avg EPS beat(12)29.63%
EPS beat(16)14
Avg EPS beat(16)44.47%
Revenue beat(2)0
Avg Revenue beat(2)-2.46%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-2.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)0.33%
Revenue beat(8)2
Avg Revenue beat(8)-1.48%
Revenue beat(12)6
Avg Revenue beat(12)0.86%
Revenue beat(16)9
Avg Revenue beat(16)2.29%
PT rev (1m)-3.95%
PT rev (3m)-7.01%
EPS NQ rev (1m)-102.22%
EPS NQ rev (3m)-103.12%
EPS NY rev (1m)3.55%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)-10.92%
Revenue NQ rev (3m)56.57%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 8.14 | ||
| P/S | 0.75 | ||
| P/FCF | 18.6 | ||
| P/OCF | 10.83 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.65 |
EPS(TTM)2.18
EY10.7%
EPS(NY)2.5
Fwd EY12.28%
FCF(TTM)1.1
FCFY5.38%
OCF(TTM)1.88
OCFY9.23%
SpS27.07
BVpS21.41
TBVpS-3.43
PEG (NY)0.63
PEG (5Y)0.52
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 | 1.51 |
F-Score4
WACC9.48%
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 Y14.81%
EPS Next 2Y15.53%
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 Year44.79%
Revenue Next 2Y22.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-46.79%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year139.5%
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%