NYSE:NX

Stock Analysis Report

Quanex Building Products

Executive Summary

Quanex Building Products Corporation, together with its subsidiaries, provides components for the fenestration industry worldwide.


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

NXIndustryMarket
7 Day2.6%0.7%0.06%
30 Day7.0%1.9%1.7%
90 Day2.9%7.0%9.0%
1 Year10.5%8.5%25.8%24.0%21.8%19.3%
3 Year0.6%-3.3%28.7%22.8%49.5%39.9%
5 Year3.7%-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

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

NamePositionTenureCompensationOwnership
William Griffiths
Executive Chairman of the Board6.6yrsUS$2.93m0.71% $4.5m
George Wilson
President0.08yrsUS$1.41m0.22% $1.4m
Scott Zuehlke
Senior VP0.7yrsUS$501.28k0.055% $352.2k
Mark Livingston
VP, Chief Accounting Officer & Controller0.3yrsno data0.021% $134.3k
Vince Warne
Director of Technical Services5.8yrsno datano data
Paul Cornett
Senior VP0.3yrsno data0.049% $312.9k
Brian Cummings
President of North American Cabinet Components4yrsno datano data
Chris Alderson
Managing Director of UK & Asia Pacific- Edgetech UK4.1yrsno datano data
Bob Daniels
President of North American Fenestration3.6yrsno datano data
Martin Thurley
Chief Executive Officer of HL Plastics2.1yrsno datano 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

NamePositionTenureCompensationOwnership
William Griffiths
Executive Chairman of the Board6.6yrsUS$2.93m0.71% $4.5m
George Wilson
President0.08yrsUS$1.41m0.22% $1.4m
Robert Buck
Independent Director8.3yrsUS$165.30kno data
Curtis Stevens
Independent Director9.3yrsUS$169.51kno data
Joseph Rupp
Independent Lead Director0yrsUS$178.69k0.14% $881.0k
Susan Davis
Independent Director13.1yrsUS$168.01k0.076% $483.3k
Meredith Mendes
Independent Director0.3yrsUS$6.71kno data
Donald Maier
Director0.9yrsUS$101.27kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2008
4Q2DB (Deutsche Boerse AG)YesCommon StockDEEURApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:01
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.