Quanex Building Products Corporation
Quanex Building Products Corporation Fundamental Analysis
Quanex Building Products Corporation (NX) shows moderate financial fundamentals with a PE ratio of -3.21, profit margin of -13.00%, and ROE of -30.23%. The company generates $1.9B in annual revenue with strong year-over-year growth of 43.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 0.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NX's fundamental strength across five key dimensions:
Efficiency Score
WeakNX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNX trades at attractive valuation levels.
Growth Score
ModerateNX shows steady but slowing expansion.
Financial Health Score
ModerateNX shows balanced financial health with some risks.
Profitability Score
WeakNX struggles to sustain strong margins.
Key Financial Metrics
Is NX Expensive or Cheap?
P/E Ratio
NX trades at -3.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NX's PEG of -0.75 indicates potential undervaluation.
Price to Book
The market values Quanex Building Products Corporation at 1.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.70 times EBITDA. This is generally considered low.
How Well Does NX Make Money?
Net Profit Margin
For every $100 in sales, Quanex Building Products Corporation keeps $-13.00 as profit after all expenses.
Operating Margin
Core operations generate -9.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-30.23 in profit for every $100 of shareholder equity.
ROA
Quanex Building Products Corporation generates $-12.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Quanex Building Products Corporation generates limited operating cash flow of $158.87M, signaling weaker underlying cash strength.
Free Cash Flow
Quanex Building Products Corporation produces free cash flow of $95.89M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.09 in free cash annually.
FCF Yield
NX converts 12.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.30
vs 25 benchmark
ROA
Return on assets percentage
-0.12
vs 25 benchmark
ROCE
Return on capital employed
-0.11
vs 25 benchmark
How NX Stacks Against Its Sector Peers
| Metric | NX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.21 | 25.84 | Better (Cheaper) |
| ROE | -30.23% | 1279.00% | Weak |
| Net Margin | -13.00% | -43714.00% (disorted) | Weak |
| Debt/Equity | 1.22 | 0.80 | Weak (High Leverage) |
| Current Ratio | 2.31 | 10.62 | Strong Liquidity |
| ROA | -12.13% | -1537441.00% (disorted) | Weak |
NX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Quanex Building Products Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.78%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-561.28%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
15.83%
Industry Style: Cyclical, Value, Infrastructure
High Growth