Quanex (NX) AI Stock Analysis

• Market Cap: $699.28M
• Dividend Yield: 2.12%
• Average Volume (3M): 999.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• 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: 1,735,004
• 30 Day Avg. Volume: 999,152
• PEG Ratio: <0.01
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 6.42
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 2.85
• Enterprise Value/Ebitda: -17.09
• 1Y Price Target: $28.00
• Price Target Upside: 82.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.21
• Revenue Forecast (FY): $1.83B

• Rating: 54 Neutral
• Price Target: $16.50 ▲(7.77% Upside)

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

Revenue Growth

The significant revenue growth driven by the Tyman acquisition indicates strong market expansion and enhanced product offerings, supporting long-term business stability.

Synergy Realization

Exceeding synergy targets enhances operational efficiency and cost management, strengthening competitive positioning and profitability over time.

Strong Free Cash Flow

Robust free cash flow growth allows for debt reduction and reinvestment in growth initiatives, supporting financial health and strategic flexibility.

Negative Factors

Rising Leverage

Increased leverage heightens financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Operational Challenges

Persistent operational issues can undermine efficiency and profitability, affecting the company's ability to meet market demand and maintain competitive edge.

Goodwill Impairment

Significant goodwill impairment reflects challenges in asset valuation, potentially impacting investor confidence and future financial performance.

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: 15.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 15.31 is above the 20-day moving average (MA) of 14.57, above the 50-day MA of 13.95, and below the 200-day MA of 16.90, indicating a neutral trend. The MACD of 0.60 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.77 is Positive, 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	66 Neutral	$491.25M	36.51	2.20%	―	-0.19%	-50.51%
APOG	64 Neutral	$809.24M	18.43	8.83%	2.77%	1.19%	-56.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROCK	60 Neutral	$1.48B	677.03	13.29%	―	-9.21%	-97.43%
JBI	60 Neutral	$935.68M	20.06	8.64%	―	-10.84%	-53.49%
NX	54 Neutral	$699.28M	―	-28.88%	2.12%	43.81%	-584.11%
JELD	40 Underperform	$210.16M	-0.32	-155.46%	―	-15.28%	-350.51%

Quanex Corporate Events

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.

Quanex Appoints Mary K. Lawler to Board

On October 28, 2025, Quanex Building Products Corporation announced the appointment of Mary K. Lawler to its Board of Directors, effective November 1, 2025. Ms. Lawler, currently the Senior Vice President and Chief Human Resources Officer at Illinois Tool Works Inc., brings extensive human resources leadership experience in global manufacturing. Her strategic vision and governance insight are expected to enhance Quanex’s growth strategy. The appointment reflects Quanex’s commitment to strengthening its board with experienced leaders to guide the company through its next phase of growth.

Quanex Appoints Gabriela Garcia as Chief Accounting Officer

On October 20, 2025, Quanex Building Products Corporation appointed Gabriela Garcia as Vice President and Chief Accounting Officer. Garcia, who has over 25 years of experience in accounting and finance, will lead the company’s global accounting function, overseeing financial reporting, compliance, internal controls, tax, and accounting policies. Her appointment is seen as a strategic move to support Quanex’s ongoing growth and ensure the implementation of best-in-class accounting processes.