QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - NYSE:NX - US7476191041 - Common Stock
15.03 USD
+0.63 (+4.37%)
15.1 USD
+0.07 (+0.47%)
Overall NX gets a fundamental rating of 5 out of 10. We evaluated NX against 41 industry peers in the Building Products industry. Both the profitability and financial health of NX have multiple concerns. NX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
With a Return On Assets value of -14.41%, NX is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
The Return On Equity of NX (-39.63%) is worse than 82.93% of its industry peers.
NX has a worse Return On Invested Capital (3.54%) than 78.05% of its industry peers.
NX had an Average Return On Invested Capital over the past 3 years of 10.24%. This is below the industry average of 12.76%.
The 3 year average ROIC (10.24%) for NX is well above the current ROIC(3.54%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -39.63% | ||
| ROIC | 3.54% |
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's Profit Margin has declined in the last couple of years.
NX has a Operating Margin of 4.02%. This is in the lower half of the industry: NX underperforms 78.05% of its industry peers.
In the last couple of years the Operating Margin of NX has declined.
NX's Gross Margin of 26.02% is on the low side compared to the rest of the industry. NX is outperformed by 68.29% of its industry peers.
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 | 4.02% | ||
| PM (TTM) | N/A | ||
| GM | 26.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NX is creating some value.
The number of shares outstanding for NX has been increased compared to 1 year ago.
Compared to 5 years ago, NX has more shares outstanding
The debt/assets ratio for NX is higher compared to a year ago.
2.2 Solvency
NX has an Altman-Z score of 1.67. This is a bad value and indicates that NX is not financially healthy and even has some risk of bankruptcy.
NX's Altman-Z score of 1.67 is on the low side compared to the rest of the industry. NX is outperformed by 82.93% of its industry peers.
The Debt to FCF ratio of NX is 26.28, which is on the high side as it means it would take NX, 26.28 years of fcf income to pay off all of its debts.
NX has a worse Debt to FCF ratio (26.28) than 73.17% of its industry peers.
NX has a Debt/Equity ratio of 0.97. This is a neutral value indicating NX is somewhat dependend on debt financing.
NX has a worse Debt to Equity ratio (0.97) than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.39
WACC9.17%
2.3 Liquidity
NX has a Current Ratio of 2.20. This indicates that NX is financially healthy and has no problem in meeting its short term obligations.
NX has a Current ratio of 2.20. This is in the better half of the industry: NX outperforms 60.98% of its industry peers.
A Quick Ratio of 1.18 indicates that NX should not have too much problems paying its short term obligations.
NX has a Quick ratio of 1.18. This is comparable to the rest of the industry: NX outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
NX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.06%.
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.
Looking at the last year, NX shows a very strong growth in Revenue. The Revenue has grown by 70.18%.
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)-17.06%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-5.48%
Revenue 1Y (TTM)70.18%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%76.67%
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 16.04% yearly.
Based on estimates for the next years, NX will show a quite strong growth in Revenue. The Revenue will grow by 13.96% on average per year.
EPS Next Y23.43%
EPS Next 2Y16.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 7.19, the valuation of NX can be described as very cheap.
NX's Price/Earnings ratio is rather cheap when compared to the industry. NX is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. NX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.12, the valuation of NX can be described as very cheap.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.77. NX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 5.12 |
4.2 Price Multiples
NX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NX is cheaper than 95.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.1 | ||
| EV/EBITDA | 7.35 |
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)0.31
PEG (5Y)0.4
EPS Next 2Y16.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 2.11%.
Compared to an average industry Dividend Yield of 1.13, NX pays a better dividend. On top of this NX pays more dividend than 97.56% of the companies listed in the same industry.
NX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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 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
The earnings of NX are negative and hence is the payout ratio. NX will probably not be able to sustain this dividend level.
DP-5.37%
EPS Next 2Y16.04%
EPS Next 3YN/A
15.03
+0.63 (+4.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners105.2%
Inst Owner Change-1.97%
Ins Owners1.02%
Ins Owner Change0.77%
Market Cap689.58M
Analysts86
Price Target28.56 (90.02%)
Short Float %3.65%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend0.3
Dividend Growth(5Y)-1.38%
DP-5.37%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-20.49%
Max EPS beat(2)23.29%
EPS beat(4)3
Avg EPS beat(4)949.59%
Min EPS beat(4)-20.49%
Max EPS beat(4)3789.32%
EPS beat(8)7
Avg EPS beat(8)489.34%
EPS beat(12)10
Avg EPS beat(12)334.51%
EPS beat(16)14
Avg EPS beat(16)260.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.2%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.68%
Max Revenue beat(4)1.67%
Revenue beat(8)2
Avg Revenue beat(8)-1.03%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)8
Avg Revenue beat(16)0.72%
PT rev (1m)-17.04%
PT rev (3m)-19.42%
EPS NQ rev (1m)-45.65%
EPS NQ rev (3m)-46.86%
EPS NY rev (1m)0%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-6.4%
Revenue NQ rev (3m)-8.99%
Revenue NY rev (1m)-1.52%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 5.12 | ||
| P/S | 0.37 | ||
| P/FCF | 25.1 | ||
| P/OCF | 8.4 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.35 |
EPS(TTM)2.09
EY13.91%
EPS(NY)2.94
Fwd EY19.53%
FCF(TTM)0.6
FCFY3.98%
OCF(TTM)1.79
OCFY11.91%
SpS40.1
BVpS15.64
TBVpS-2.46
PEG (NY)0.31
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.41% | ||
| ROE | -39.63% | ||
| ROCE | 4.33% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 7.46% | ||
| OM | 4.02% | ||
| PM (TTM) | N/A | ||
| GM | 26.02% | ||
| FCFM | 1.49% |
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-Score4
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Debt/EBITDA | 3.88 | ||
| Cap/Depr | 51.97% | ||
| Cap/Sales | 2.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.67 |
F-Score4
WACC9.17%
ROIC/WACC0.39
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)-17.06%
EPS 3Y7.8%
EPS 5Y18.07%
EPS Q2Q%-5.48%
EPS Next Y23.43%
EPS Next 2Y16.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)70.18%
Revenue growth 3Y6.03%
Revenue growth 5Y7.41%
Sales Q2Q%76.67%
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
Revenue Next 5YN/A
EBIT growth 1Y-25.97%
EBIT growth 3Y-13.15%
EBIT growth 5Y2%
EBIT Next Year138.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-76.02%
FCF growth 3Y-1.77%
FCF growth 5Y-6.27%
OCF growth 1Y-45.5%
OCF growth 3Y4.16%
OCF growth 5Y-1.63%