QUANEX BUILDING PRODUCTS (NX) Stock Fundamental Analysis
USA - NYSE:NX - US7476191041 - Common Stock
13.06 USD
+0.04 (+0.31%)
13.06 USD
0 (0%)
Taking everything into account, NX scores 4 out of 10 in our fundamental rating. NX was compared to 41 industry peers in the Building Products industry. NX has a bad profitability rating. Also its financial health evaluation is rather negative. NX is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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's Return On Assets of -14.41% is on the low side compared to the rest of the industry. NX is outperformed by 85.37% of its industry peers.
Looking at the Return On Equity, with a value of -39.63%, NX is doing worse than 82.93% of the companies in the same industry.
With a Return On Invested Capital value of 3.54%, NX is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for NX is below the industry average of 12.50%.
The last Return On Invested Capital (3.54%) 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 | -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
In the last couple of years the Profit Margin of NX has declined.
The Operating Margin of NX (4.02%) is worse than 78.05% of its industry peers.
NX's Operating Margin has declined in the last couple of years.
The Gross Margin of NX (26.02%) is worse than 65.85% 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
NX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
Compared to 1 year ago, NX has a worse debt to assets ratio.
2.2 Solvency
NX has an Altman-Z score of 1.64. 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 1.64 is on the low side compared to the rest of the industry. NX is outperformed by 85.37% of its industry peers.
NX has a debt to FCF ratio of 26.28. This is a negative value and a sign of low solvency as NX would need 26.28 years to pay back of all of its debts.
The Debt to FCF ratio of NX (26.28) is worse than 70.73% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that NX is somewhat dependend on debt financing.
NX has a Debt to Equity ratio of 0.97. This is in the lower half of the industry: NX underperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 26.28 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.44
WACC7.98%
2.3 Liquidity
A Current Ratio of 2.20 indicates that NX has no problem at all paying its short term obligations.
The Current ratio of NX (2.20) is better than 65.85% of its industry peers.
NX has a Quick Ratio of 1.18. 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 (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for NX have decreased strongly by -17.06% in the last year.
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.
NX shows a strong growth in Revenue. In the last year, the Revenue has grown by 70.18%.
The Revenue has been growing slightly by 7.41% on average over the past years.
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 8.12% yearly.
NX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.96% yearly.
EPS Next Y-4.8%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year42.59%
Revenue Next 2Y19.7%
Revenue Next 3Y13.96%
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.
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 6.25, the valuation of NX can be described as very cheap.
100.00% of the companies in the same industry are more expensive than NX, based on the Price/Earnings ratio.
NX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 5.75, the valuation of NX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NX indicates a rather cheap valuation: NX is cheaper than 100.00% of the companies listed in the same industry.
NX is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NX indicates a rather cheap valuation: NX is cheaper than 87.80% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NX is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y2.07%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
NX has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
The stock price of NX dropped by -33.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NX's Dividend Yield is rather good when compared to the industry average which is at 1.29. NX pays more dividend than 95.12% of the companies in the same industry.
NX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
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 2Y2.07%
EPS Next 3Y8.12%
13.06
+0.04 (+0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.96%
Inst Owner Change0%
Ins Owners1.03%
Ins Owner Change0.77%
Market Cap599.19M
Revenue(TTM)1.84B
Net Income(TTM)-284.29M
Analysts86
Price Target28.56 (118.68%)
Short Float %4.55%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)0%
PT rev (3m)-17.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.25 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.33 | ||
| P/FCF | 21.81 | ||
| P/OCF | 7.3 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.99 |
EPS(TTM)2.09
EY16%
EPS(NY)2.27
Fwd EY17.39%
FCF(TTM)0.6
FCFY4.59%
OCF(TTM)1.79
OCFY13.71%
SpS40.1
BVpS15.64
TBVpS-2.46
PEG (NY)N/A
PEG (5Y)0.35
Graham Number27.12
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%
ROICexgc growth 3Y-37.63%
ROICexgc 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 | 1.64 |
F-Score4
WACC7.98%
ROIC/WACC0.44
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 Y-4.8%
EPS Next 2Y2.07%
EPS Next 3Y8.12%
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 Year105.68%
EBIT Next 3Y33.72%
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%
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.
What is the valuation status for NX stock?
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.
Can you provide the financial health for NX stock?
The financial health rating of QUANEX BUILDING PRODUCTS (NX) is 3 / 10.
What is the expected EPS growth for QUANEX BUILDING PRODUCTS (NX) stock?
The Earnings per Share (EPS) of QUANEX BUILDING PRODUCTS (NX) is expected to decline by -4.8% in the next year.