Quanex Building Products
Market Cap
US$634.9m
Last Updated
2020/02/21 01:01 UTC
Data Sources
Company Financials +
Executive Summary
Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Quanex Building Products's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.6%
NX
0.7%
US Building
0.06%
US Market
1 Year Return
8.5%
NX
24.0%
US Building
19.3%
US Market
Return vs Industry: NX underperformed the US Building industry which returned 24% over the past year.
Return vs Market: NX underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| NX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 0.7% | 0.06% |
| 30 Day | 7.0% | 1.9% | 1.7% |
| 90 Day | 2.9% | 7.0% | 9.0% |
| 1 Year | 10.5%8.5% | 25.8%24.0% | 21.8%19.3% |
| 3 Year | 0.6%-3.3% | 28.7%22.8% | 49.5%39.9% |
| 5 Year | 3.7%-2.0% | 52.3%32.4% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Quanex Building Products's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
A Look At The Intrinsic Value Of Quanex Building Products Corporation (NYSE:NX)3 weeks ago | Simply Wall St
Here's How We Evaluate Quanex Building Products Corporation's (NYSE:NX) Dividend1 month ago | Simply Wall St
Is Quanex Building Products (NYSE:NX) A Risky Investment?Valuation
Is Quanex Building Products undervalued compared to its fair value and its price relative to the market?
7.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NX ($19.19) is trading below our estimate of fair value ($20.84)
Significantly Below Fair Value: NX is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NX is unprofitable, so we can't compare its PE Ratio to the Building industry average.
PE vs Market: NX is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NX is good value based on its PB Ratio (1.9x) compared to the US Building industry average (2.5x).
Next Steps
Future Growth
How is Quanex Building Products forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
105.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: NX is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: NX's is expected to become profitable in the next 3 years.
Revenue vs Market: NX's revenue is expected to decline over the next 3 years (-0.3% per year).
High Growth Revenue: NX's revenue is forecast to decline over the next 3 years (-0.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NX's Return on Equity is forecast to be low in 3 years time (10.5%).
Next Steps
Past Performance
How has Quanex Building Products performed over the past 5 years?
-15.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NX is currently unprofitable.
Growing Profit Margin: NX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NX is unprofitable, and losses have increased over the past 5 years at a rate of -15.5% per year.
Accelerating Growth: Unable to compare NX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NX is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (-13.3%).
Return on Equity
High ROE: NX has a negative Return on Equity (-14.15%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Quanex Building Products's financial position?
Financial Position Analysis
Short Term Liabilities: NX's short term assets ($190.3M) exceed its short term liabilities ($109.8M).
Long Term Liabilities: NX's short term assets ($190.3M) do not cover its long term liabilities ($205.2M).
Debt to Equity History and Analysis
Debt Level: NX's debt to equity ratio (42.8%) is considered high.
Reducing Debt: NX's debt to equity ratio has increased from 0.2% to 42.8% over the past 5 years.
Balance Sheet
Inventory Level: NX has a high level of physical assets or inventory.
Debt Coverage by Assets: NX's debt is covered by short term assets (assets are 1.3x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NX has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: NX has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Quanex Building Products's current dividend yield, its reliability and sustainability?
1.67%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NX's dividend (1.67%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: NX's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (3.71%).
Stability and Growth of Payments
Stable Dividend: NX's dividends per share have been stable in the past 10 years.
Growing Dividend: NX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: NX is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: NX's dividends in 3 years are forecast to be well covered by earnings (26.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
George Wilson (50yo)
0.08yrs
Tenure
US$1,413,253
Compensation
Mr. George L. Wilson has been the President, Chief Executive Officer and Director at Quanex Building Products Corporation since January 1, 2020 and had been its Chief Operating Officer and Vice President s ...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD1.41M) is below average for companies of similar size in the US market ($USD2.48M).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 6.6yrs | US$2.93m | 0.71% $4.5m | |
| President | 0.08yrs | US$1.41m | 0.22% $1.4m | |
| Senior VP | 0.7yrs | US$501.28k | 0.055% $352.2k | |
| VP, Chief Accounting Officer & Controller | 0.3yrs | no data | 0.021% $134.3k | |
| Director of Technical Services | 5.8yrs | no data | no data | |
| Senior VP | 0.3yrs | no data | 0.049% $312.9k | |
| President of North American Cabinet Components | 4yrs | no data | no data | |
| Managing Director of UK & Asia Pacific- Edgetech UK | 4.1yrs | no data | no data | |
| President of North American Fenestration | 3.6yrs | no data | no data | |
| Chief Executive Officer of HL Plastics | 2.1yrs | no data | no data |
1.4yrs
Average Tenure
53yo
Average Age
Experienced Management: NX's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 6.6yrs | US$2.93m | 0.71% $4.5m | |
| President | 0.08yrs | US$1.41m | 0.22% $1.4m | |
| Independent Director | 8.3yrs | US$165.30k | no data | |
| Independent Director | 9.3yrs | US$169.51k | no data | |
| Independent Lead Director | 0yrs | US$178.69k | 0.14% $881.0k | |
| Independent Director | 13.1yrs | US$168.01k | 0.076% $483.3k | |
| Independent Director | 0.3yrs | US$6.71k | no data | |
| Director | 0.9yrs | US$101.27k | no data |
6.6yrs
Average Tenure
65.5yo
Average Age
Experienced Board: NX's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Quanex Building Products Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Quanex Building Products Corporation
- Ticker: NX
- Exchange: NYSE
- Founded: 1927
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$634.869m
- Shares outstanding: 33.08m
- Website: https://www.quanex.com
Number of Employees
Location
- Quanex Building Products Corporation
- 1800 West Loop South
- Suite 1500
- Houston
- Texas
- 77027
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2008 |
| 4Q2 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2008 |
Biography
Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry worldwide. It operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. The company offers flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products, as well as cabinet doors and other components for original equipment manufacturers (OEMs) in the kitchen and bathroom cabinet industry. It also provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. The company sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is headquartered in Houston, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 01:01 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/10/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.