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NX

Quanex Building Products NYSE:NX Stock Report

Last Price

US$22.66

Market Cap

US$750.2m

7D

8.1%

1Y

-10.1%

Updated

26 Jun, 2022

Data

Company Financials +
NX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

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.

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 PriceUS$22.66
52 Week HighUS$25.93
52 Week LowUS$18.87
Beta1.49
1 Month Change13.41%
3 Month Change1.80%
1 Year Change-10.08%
3 Year Change19.96%
5 Year Change7.14%
Change since IPO72.32%

Recent News & Updates

Jun 13
Quanex Building Products (NYSE:NX) Will Pay A Dividend Of US$0.08

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

NXUS BuildingUS Market
7D8.1%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 Movement6.5%
Building Industry Average Movement6.5%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
19273,860George Wilsonhttps://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 CapUS$750.19m
Earnings (TTM)US$72.34m
Revenue (TTM)US$1.16b

10.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NX income statement (TTM)
RevenueUS$1.16b
Cost of RevenueUS$908.17m
Gross ProfitUS$253.41m
Other ExpensesUS$181.07m
EarningsUS$72.34m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.19
Gross Margin21.82%
Net Profit Margin6.23%
Debt/Equity Ratio14.3%

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.

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/Revenue0.7x
Enterprise Value/EBITDA6x
PEG Ratio5x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.2x

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 Ratio10.4x
Fair PE Ratio12.6x

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.


Top Shareholders

Company Information

Quanex Building Products Corporation's 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
  • Implied Market Cap: US$750.188m
  • Shares outstanding: 33.11m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/30
Annual Earnings2021/10/31


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.