Quanex (NX) AI Stock Analysis

• Market Cap: $892.65M
• Dividend Yield: 1.68%
• Average Volume (3M): 378.94K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.94
• Revenue Growth: 47.66%
• EPS Growth: -75.65%
• Country: US
• Employees: 7,068
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): 0.60
• Shares Outstanding: 47,230,263
• 10 Day Avg. Volume: 499,433
• 30 Day Avg. Volume: 378,945
• PEG Ratio: -1.54
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.96
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: 3.23
• 1Y Price Target: $38.00
• Price Target Upside: 88.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $22.50 ▲(11.44%Upside)

Quanex's overall stock score is driven primarily by its solid financial performance and successful integration efforts, despite valuation concerns and global challenges. The earnings call provides a balanced outlook with strong guidance, which boosts investor confidence.

Positive Factors

Earnings

Quanex Building Products Corp. reported better than anticipated results as revenue, EBITDA, and EPS came in ahead of consensus estimates and prior guidance.

Strategic Growth

The Tyman deal closure significantly increases the company’s scale, global footprint, and product offering, pointing to strong profit growth potential in the years ahead.

Valuation

Quanex trades at the lowest P/E multiple in the last 15+ years, offering a valuation disconnect with its growth potential.

Negative Factors

Consumer Confidence

Seemingly little upside to end markets near term with consumer confidence affected by significant unknowns in the macro backdrop and future costs.

Market Demand

Severe weather and soft market demand weighed on revenue for both legacy Quanex and Tyman operations.

Quanex Business Overview & Revenue Model

Company Description

Quanex Building Products Corporation (NX) is a leading manufacturer and supplier in the building products industry, focusing primarily on components used in residential and commercial construction. The company specializes in the production of window and door components, insulating glass spacers, and other engineered products that enhance energy efficiency and building sustainability. Quanex serves a variety of markets across North America and Europe, catering to both original equipment manufacturers (OEMs) and aftermarket customers.

How the Company Makes Money

Quanex generates revenue through the manufacturing and sale of specialized building components. The company's primary revenue streams include the sale of window and door components, such as extruded vinyl profiles, insulating glass spacer systems, and screens, which are critical in constructing energy-efficient and sustainable buildings. Quanex partners with OEMs in the fenestration market, leveraging long-term relationships to secure steady demand for its products. Additionally, the company benefits from its aftermarket sales, providing replacement parts and upgrades that maintain or improve the performance of existing infrastructure. Strategic acquisitions and investments in innovative technologies also contribute to Quanex's financial performance, enabling the company to expand its product offerings and market reach.

Quanex Financial Statement Overview

Summary

Quanex shows strong revenue growth and effective cost management. However, the declining EBIT margin and ROE, along with negative free cash flow growth, pose challenges for profitability and liquidity.

Income Statement

The company shows a solid gross profit margin of 43.96% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 0.83%, reflecting challenges in controlling other expenses. Revenue growth is positive at 12.6% from the previous year, demonstrating a robust increase in sales. Nevertheless, the EBIT margin has declined significantly, suggesting potential inefficiencies or increased operational costs.

Balance Sheet

Quanex's debt-to-equity ratio is 0.91, reflecting moderate leverage but manageable risk. The equity ratio stands at 43.79%, indicating a stable asset financing structure. However, return on equity has dropped to 1.23%, signaling decreased profitability for shareholders. The company maintains a balanced approach to asset and liability management, although the lower ROE may concern investors.

Cash Flow

Quanex's free cash flow has decreased, resulting in a negative growth rate of -35.6%, which may impact future investments. The operating cash flow to net income ratio is strong at 6.07, suggesting effective cash generation relative to profits. However, the free cash flow to net income ratio is lower at 2.79, indicating potential constraints in liquidity after capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.44B	1.28B	1.13B	1.22B	1.07B	851.57M
	Gross Profit
324.66M	305.62M	277.52M	268.50M	240.61M	192.82M
	EBIT
39.93M	54.83M	110.70M	111.28M	81.87M	55.27M
	EBITDA
124.55M	123.00M	148.05M	152.43M	125.36M	102.77M
	Net Income Common Stockholders
11.93M	33.06M	82.50M	88.34M	56.98M	38.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.98M	97.74M	58.47M	55.09M	40.06M	51.62M
	Total Assets
2.22B	2.32B	831.14M	724.62M	717.32M	691.59M
	Total Debt
879.85M	892.98M	116.39M	87.69M	106.50M	169.75M
	Net Debt
829.87M	795.23M	57.91M	32.59M	66.44M	118.13M
	Total Liabilities
1.25B	1.31B	285.59M	259.78M	297.54M	335.83M
	Stockholders Equity
972.12M	1.01B	545.55M	464.83M	419.78M	355.76M
Cash Flow		Free Cash Flow
33.32M	51.73M	109.66M	64.84M	54.58M	75.07M
	Operating Cash Flow
72.45M	88.81M	147.05M	97.97M	78.59M	100.80M
	Investing Cash Flow
-422.50M	-420.59M	-128.44M	-32.96M	-18.71M	-25.22M
	Financing Cash Flow
372.30M	385.16M	-16.15M	-45.88M	-71.86M	-55.12M

Quanex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NX, the sentiment is Positive. The current price of 20.19 is above the 20-day moving average (MA) of 17.96, above the 50-day MA of 17.42, and below the 200-day MA of 23.38, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 66.54 is Neutral, neither overbought nor oversold. The STOCH value of 57.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NX.

Quanex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	78 Outperform	$1.03B	23.48	27.48%	1.65%	-1.05%	-2.78%
GRC	76 Outperform	$978.41M	22.00	12.06%	1.98%	0.92%	21.96%
GIC	74 Outperform	$1.05B	17.26	22.15%	3.78%	-0.79%	-13.64%
NX	72 Outperform	$892.65M	31.83	2.18%	1.68%	47.66%	-75.65%
ATRO	68 Neutral	$1.18B	―	-1.35%	―	13.73%	86.81%
HLIO	67 Neutral	$1.10B	29.72	4.27%	1.10%	-5.39%	12.14%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%

Quanex Corporate Events

Quanex Declares Quarterly Dividend of $0.08 Per Share

On May 30, 2025, Quanex Building Products Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock. This dividend is payable on June 30, 2025, to shareholders of record as of June 16, 2025. This announcement reflects Quanex’s ongoing commitment to returning value to its shareholders and may positively impact the company’s market positioning by reinforcing investor confidence.

The most recent analyst rating on (NX) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.