Quanex (NX) AI Stock Analysis

• Market Cap: $918.06M
• Dividend Yield: 2.12%
• Average Volume (3M): 543.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 43.81%
• EPS Growth: -584.11%
• Country: US
• Employees: 7,068
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.83
• Shares Outstanding: 45,674,725
• 10 Day Avg. Volume: 548,843
• 30 Day Avg. Volume: 543,203
• PEG Ratio: <0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 6.42
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: -20.56
• 1Y Price Target: $28.00
• Price Target Upside: 37.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $20.00 ▼(-1.77% Downside)

Quanex's overall stock score is primarily impacted by financial challenges, including declining profitability and increased leverage. While technical analysis shows some short-term bullish momentum, valuation concerns and mixed earnings call sentiment weigh on the score. Positive corporate events provide some support, but significant risks remain.

Positive Factors

Scale and Revenue Growth

The Tyman acquisition materially expanded Quanex’s revenue base, producing a step-change in scale. Larger consolidated sales diversify end markets and customer relationships, improving bargaining power and enabling fixed-cost absorption. This scale advantage supports sustainable revenue and investment capacity over the next 2–6 months as integrations continue.

Synergy Realization

Delivering synergies above the committed $30M shows effective post-acquisition integration and cost structure improvement. Persistent synergy capture enhances medium-term margin sustainability, funds reinvestment, and demonstrates management execution capability, which has lasting positive implications for adjusted profitability and cash generation.

Free Cash Flow & Deleveraging

Nearly doubling free cash flow and using proceeds to repay $75M of debt shows tangible cash conversion and disciplined capital allocation. Strong FCF improves liquidity and reduces near-term refinancing risk, providing durable capacity to service debt, fund operations, pay dividends, or invest in growth initiatives over the coming quarters.

Negative Factors

Elevated Leverage

Higher leverage (debt-to-equity ~1.18) constrains financial flexibility and increases sensitivity to demand slowdowns or interest cost increases. Even with recent FCF and repayments, elevated leverage limits capacity for opportunistic investments or cushioning against cyclical weakness, raising medium-term refinancing and covenant risk until leverage meaningfully declines.

Profitability Pressure

A negative net margin (-12%) and negative ROE reflect structural profitability weaknesses after noncash goodwill impairment. Persistent negative margins reduce internal funding for capex and working capital, pressuring long-term cash generation and requiring sustained operational improvements or pricing power gains to restore consistent profitability.

Operational & Macro Headwinds

Plant disruptions and a weak macro backdrop create recurring operational risk and volatility in earnings. The Monterrey setback, combined with guidance for flat revenue/EBITDA in FY26, signals that integration and demand challenges may persist, limiting near-term margin recovery and testing the durability of realized synergies and cash flow improvement.

Quanex Business Overview & Revenue Model

Company Description

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. The company also provides various non-fenestration components and products, including solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. It sells its products to OEMs in the building products industry through sales representatives, direct sales force, distributors, and independent sales agents. The company was founded in 1927 and is based in Houston, Texas.

How the Company Makes Money

Quanex generates revenue primarily through the sale of its manufactured products in the building materials sector. The company operates on a business-to-business model, supplying its products to manufacturers, distributors, and contractors in the construction industry. Key revenue streams include the sale of window and door systems, which benefit from increasing demand for energy-efficient solutions, and cabinetry components that cater to the remodeling and new construction markets. Additionally, Quanex benefits from partnerships with leading building products companies and collaborations that enhance product development and market reach. The company's focus on innovation and sustainability also positions it favorably in an increasingly environmentally conscious market.

Quanex Financial Statement Overview

Summary

Quanex faces significant financial challenges, with declining profitability and increasing leverage posing risks. While cash flow generation shows some positive trends, the company's ability to sustain growth and improve margins remains uncertain.

Income Statement

Quanex's income statement reveals significant challenges, particularly in the TTM period, with a negative net profit margin of -12% and declining revenue growth of -12.6%. The company has struggled to maintain profitability, as evidenced by the negative EBIT and EBITDA margins. Historical data shows fluctuating revenue growth and declining margins, indicating instability in financial performance.

Balance Sheet

The balance sheet shows a concerning increase in leverage, with a debt-to-equity ratio rising to 1.18 in the TTM period, indicating higher financial risk. Return on equity has turned negative, reflecting poor profitability. However, the equity ratio remains relatively stable, suggesting some level of asset backing.

Cash Flow

Quanex's cash flow statement presents a mixed picture. While free cash flow growth has been strong at 272% in the TTM period, the operating cash flow to net income ratio is low at 0.27, indicating potential cash flow issues. The free cash flow to net income ratio is moderate, suggesting some ability to generate cash relative to earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.84B	1.28B	1.13B	1.22B	1.07B
Gross Profit	499.23M	305.62M	277.52M	268.50M	240.61M
EBITDA	-83.34M	123.00M	148.05M	152.43M	125.36M
Net Income	-250.81M	33.06M	82.50M	88.34M	56.98M
Balance Sheet
Total Assets	1.97B	2.32B	831.14M	724.62M	717.32M
Cash, Cash Equivalents and Short-Term Investments	76.02M	97.74M	58.47M	55.09M	40.06M
Total Debt	853.73M	892.98M	116.39M	87.69M	106.50M
Total Liabilities	1.24B	1.31B	285.59M	259.78M	297.54M
Stockholders Equity	726.18M	1.01B	545.55M	464.83M	419.78M
Cash Flow
Free Cash Flow	102.25M	51.73M	109.66M	64.84M	54.58M
Operating Cash Flow	164.90M	88.81M	147.05M	97.97M	78.59M
Investing Cash Flow	-62.01M	-420.59M	-128.44M	-32.96M	-18.71M
Financing Cash Flow	-127.48M	385.16M	-16.15M	-45.88M	-71.86M

Quanex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 20.36 is above the 20-day moving average (MA) of 18.59, above the 50-day MA of 16.25, and above the 200-day MA of 16.85, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 77.50 is Negative, neither overbought nor oversold. The STOCH value of 84.97 is Negative, 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
BXC	65 Neutral	$620.95M	44.75	2.20%	―	-0.19%	-50.51%
JBI	64 Neutral	$963.45M	20.57	8.64%	―	-10.84%	-53.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROCK	61 Neutral	$1.57B	705.41	13.29%	―	-9.21%	-97.43%
APOG	59 Neutral	$871.16M	21.89	7.73%	2.77%	1.19%	-56.98%
NX	54 Neutral	$918.06M	-3.71	-28.88%	2.12%	43.81%	-584.11%
JELD	40 Underperform	$239.20M	-0.36	-155.46%	―	-15.28%	-350.51%

Quanex Corporate Events

Quanex investor Teleios ends board observer role

On January 6, 2026, Quanex Building Products Corporation reported that Teleios Global Opportunities Master Fund had notified the company of the resignation of its designated observer to Quanex’s board of directors, effective January 8, 2026. Following this move, Teleios no longer holds any observer rights to the company’s board, signaling a formal step back from direct board-level monitoring that may slightly alter the governance dynamic between the investor and the company.

The most recent analyst rating on (NX) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.

Quanex Declares Quarterly Dividend for Shareholders

On December 5, 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, payable on December 31, 2025, to shareholders of record on December 15, 2025. This announcement reflects Quanex’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

The most recent analyst rating on (NX) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.