Quanex Building Products (NYSE:NX) - Share price, News & Analysis

NX fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

NX Stock Overview

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, Europe, Canada, Asia, and internationally.

Rewards

Trading at 37.1% below our estimate of its fair value

Earnings are forecast to grow 2.07% per year

Earnings grew by 30.6% over the past year

Risk Analysis

No risks detected for NX from our risk checks.

Quanex Building Products Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Quanex Building Products
Historical stock prices
Current Share Price	US$22.66
52 Week High	US$25.93
52 Week Low	US$18.87
Beta	1.49
1 Month Change	13.41%
3 Month Change	1.80%
1 Year Change	-10.08%
3 Year Change	19.96%
5 Year Change	7.14%
Change since IPO	72.32%

Recent News & Updates

Jun 13

Quanex Building Products (NYSE:NX) Will Pay A Dividend Of US$0.08

The board of Quanex Building Products Corporation ( NYSE:NX ) has announced that it will pay a dividend on the 30th of...

Shareholder Returns

	NX	US Building	US Market
7D	8.1%	5.3%	6.6%
1Y	-10.1%	-24.3%	-18.5%

Return vs Industry: NX exceeded the US Building industry which returned -24.3% over the past year.

Return vs Market: NX exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is NX's price volatile compared to industry and market?
NX volatility
NX Average Weekly Movement	6.5%
Building Industry Average Movement	6.5%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: NX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NX's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1927	3,860	George Wilson	https://www.quanex.com

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry in the United States, Europe, Canada, Asia, and internationally. The company operates through three segments: North American Fenestration, European Fenestration, and North American Cabinet Components. It 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.

Quanex Building Products Fundamentals Summary

How do Quanex Building Products's earnings and revenue compare to its market cap?
NX fundamental statistics
Market Cap	US$750.19m
Earnings (TTM)	US$72.34m
Revenue (TTM)	US$1.16b

10.4x

P/E Ratio

0.6x

P/S Ratio

Is NX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NX income statement (TTM)
Revenue	US$1.16b
Cost of Revenue	US$908.17m
Gross Profit	US$253.41m
Other Expenses	US$181.07m
Earnings	US$72.34m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.19
Gross Margin	21.82%
Net Profit Margin	6.23%
Debt/Equity Ratio	14.3%

How did NX perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

15%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is NX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NX. This is calculated by dividing NX's market cap by their current preferred multiple.
What is NX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$750.19m

NX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	6x
PEG Ratio	5x

Price to Earnings Ratio vs Peers

How does NX's PE Ratio compare to its peers?

NX PE Ratio vs Peers

The above table shows the PE ratio for NX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.2x

Forward PE

Price-To-Earnings vs Peers: NX is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (26.2x).

Price to Earnings Ratio vs Industry

How does NX's PE Ratio compare vs other companies in the U.S. Building Industry?

Price-To-Earnings vs Industry: NX is good value based on its Price-To-Earnings Ratio (10.4x) compared to the US Building industry average (16.2x)

Price to Earnings Ratio vs Fair Ratio

What is NX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.4x
Fair PE Ratio	12.6x

Price-To-Earnings vs Fair Ratio: NX is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

Share Price vs Fair Value

What is the Fair Price of NX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NX ($22.66) is trading below our estimate of fair value ($36)

Significantly Below Fair Value: NX is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: NX is poor value based on its PEG Ratio (5x)

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Future Growth

How is Quanex Building Products forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NX's forecast earnings growth (2.1% per year) is above the savings rate (1.9%).

Earnings vs Market: NX's earnings (2.1% per year) are forecast to grow slower than the US market (14% per year).

High Growth Earnings: NX's earnings are forecast to grow, but not significantly.

Revenue vs Market: NX's revenue (3.8% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: NX's revenue (3.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if NX's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Quanex Building Products performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NX has high quality earnings.

Growing Profit Margin: NX's current net profit margins (6.2%) are higher than last year (5.7%).

Past Earnings Growth Analysis

Earnings Trend: NX has become profitable over the past 5 years, growing earnings by 28.7% per year.

Accelerating Growth: NX's earnings growth over the past year (30.6%) exceeds its 5-year average (28.7% per year).

Earnings vs Industry: NX earnings growth over the past year (30.6%) exceeded the Building industry 27.3%.

Return on Equity

High ROE: NX's Return on Equity (16.6%) is considered low.

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Financial Health

How is Quanex Building Products's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NX's short term assets ($298.9M) exceed its short term liabilities ($146.6M).

Long Term Liabilities: NX's short term assets ($298.9M) exceed its long term liabilities ($157.7M).

Debt to Equity History and Analysis

Debt Level: NX's net debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: NX's debt to equity ratio has reduced from 71.5% to 14.3% over the past 5 years.

Debt Coverage: NX's debt is well covered by operating cash flow (76.3%).

Interest Coverage: NX's interest payments on its debt are well covered by EBIT (43.6x coverage).

Balance Sheet

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Dividend

What is Quanex Building Products's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.41%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NX's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NX's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (4.24%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.7%), NX's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53.6%), NX's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure

CEO

George Wilson (52 yo)

2.42yrs

Tenure

US$4,107,121

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 ($USD4.11M) is about average for companies of similar size in the US market ($USD4.05M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: NX's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: NX's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.

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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/04/30
Annual Earnings	2021/10/31