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

Fundamentals

Average dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

0.4%

NX

2.1%

US Building

0.5%

US Market


1 Year Return

17.1%

NX

21.1%

US Building

6.8%

US Market

Return vs Industry: NX underperformed the US Building industry which returned 21.1% over the past year.

Return vs Market: NX exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

NXIndustryMarket
7 Day0.4%2.1%0.5%
30 Day1.7%1.3%-0.8%
90 Day5.8%5.8%-0.9%
1 Year19.4%17.1%23.0%21.1%9.2%6.8%
3 Year18.4%14.0%30.1%19.1%45.6%36.2%
5 Year2.8%-2.7%59.1%39.6%63.2%45.4%

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?

17.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NX ($18.81) is trading below our estimate of fair value ($22.79)

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 (1.7x) compared to the US Building industry average (2.3x).


Next Steps

Future Growth

How is Quanex Building Products forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

118.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NX's revenue (1.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NX's revenue (1.8% per year) is forecast to grow slower than 20% 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 (9.4%).


Next Steps

Past Performance

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

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NX is unprofitable, but has reduced losses over the past 5 years at a rate of 10.1% 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 (7.7%).


Return on Equity

High ROE: NX has a negative Return on Equity (-2.57%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Quanex Building Products's financial position?


Financial Position Analysis

Short Term Liabilities: NX's short term assets ($186.0M) exceeds its short term liabilities ($86.6M)

Long Term Liabilities: NX's short term assets (186.0M) do not cover its long term liabilities (232.1M)


Debt to Equity History and Analysis

Debt Level: NX's debt to equity ratio (48.8%) is considered high

Reducing Debt: NX's debt to equity ratio has increased from 0.2% to 48.8% over the past 5 years.

Debt Coverage: NX's debt is well covered by operating cash flow (48.8%).

Interest Coverage: NX is unprofitable, therefore interest payments are not well covered by earnings.


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 1.053680x debt).


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NX's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NX's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (28.2% payout ratio).


Next Steps

Management

What is the CEO of Quanex Building Products's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Bill Griffiths (67yo)

6.3yrs

Tenure

US$3,955,016

Compensation

Mr. William C. Griffiths, also known as Bill, has been the Chairman of the Board, Chief Executive Officer and President at Quanex Building Products Corporation since July 09, 2013. Mr. Griffiths served as  ...


CEO Compensation Analysis

Compensation vs. Market: Bill's total compensation ($USD3.96M) is about average for companies of similar size in the US market ($USD2.70M).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NX's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

66yo

Average Age

Experienced Board: NX's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$389,61627 Dec 18
Joseph Rupp
EntityIndividual
Role
Lead Director
Lead Director
Shares30,000
Max PriceUS$13.06

Ownership Breakdown


Management Team

  • Bill Griffiths (67yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$3.96m
  • Kevin Delaney (57yo)

    Senior VP

    • Tenure: 11.8yrs
    • Compensation: US$1.58m
  • George Wilson (50yo)

    VP & COO

    • Tenure: 2.2yrs
    • Compensation: US$1.79m
  • Scott Zuehlke (43yo)

    VP of Investor Relations

    • Tenure: 0.3yrs
    • Compensation: US$657.28k
  • Vince Warne

    Director of Technical Services

    • Tenure: 5.5yrs
  • Larry Patterson

    Director of Operations

    • Tenure: 5.5yrs
  • Brian Cummings

    President of North American Cabinet Components

    • Tenure: 3.7yrs
  • Chris Alderson

    Managing Director of UK & Asia Pacific- Edgetech UK

    • Tenure: 3.8yrs
  • Bob Daniels

    President of North American Fenestration

    • Tenure: 3.3yrs
  • Martin Thurley

    Chief Executive Officer of HL Plastics

    • Tenure: 1.8yrs

Board Members

  • Bob Buck (71yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$158.12k
  • Curtis Stevens (66yo)

    Director

    • Tenure: 9yrs
    • Compensation: US$163.20k
  • Joe Rupp (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$173.67k
  • Susan Davis (65yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$160.37k
  • Meredith Mendes (60yo)

    Director

    • Tenure: 0yrs
  • Bill Griffiths (67yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$3.96m
  • Don Maier (55yo)

    Director

    • Tenure: 0.6yrs

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$619.450m
  • Shares outstanding: 32.93m
  • 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 Engineered Components,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:59
End of Day Share Price2019/10/18 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.