Quanex (NX) AI Stock Analysis

• Market Cap: $943.12M
• Dividend Yield: 2.12%
• Average Volume (3M): 507.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• 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: 45,938,400
• 10 Day Avg. Volume: 448,954
• 30 Day Avg. Volume: 507,594
• 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: 1.82
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: -20.65
• 1Y Price Target: $28.00
• Price Target Upside: 36.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.1
• Revenue Forecast (FY): $1.84B

• Rating: 55 Neutral
• Price Target: $21.50 ▲(4.72% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

NX scores mid-range primarily due to weak financial performance (losses, shrinking TTM revenue, and higher leverage) that outweigh improving free cash flow. Technicals are a relative bright spot with a supportive uptrend and neutral momentum, while valuation is constrained by negative earnings despite a modest dividend. The latest earnings call adds a mixed view: record adjusted EBITDA and synergies, but flat 2026 guidance with near-term pressure and operational headwinds.

Positive Factors

Acquisitive Revenue Growth

The 43.8% full-year sales jump from the Tyman acquisition materially expands scale and product breadth. Larger revenue base and added channels improve market position, enable cross-selling, and reduce single-product concentration, supporting more durable top-line resilience over coming quarters.

Free Cash Flow Strength

Strong free cash flow growth and a $75M debt repayment demonstrate improved cash conversion and financial flexibility. Sustainable FCF supports capital allocation for capex, dividends, and deleveraging, cushioning the business against cyclical revenue swings and enabling strategic investments.

Synergy & Resegmentation Gains

Realizing synergies above targets and resegmenting the business indicate successful post-acquisition integration and structural cost improvements. These changes can permanently lower unit costs, improve margin sustainability, and unlock cross-selling opportunities across the enlarged product set.

Negative Factors

Negative Profitability Trend

A -12% net margin and declining TTM revenue point to structural profitability weaknesses. Persistent negative margins erode return on invested capital, limit reinvestment capacity, and increase sensitivity to raw material and pricing pressure, making sustainable earnings recovery more challenging.

Rising Leverage

Higher debt-to-equity reduces balance sheet flexibility and raises interest and covenant risk. With cyclical exposure to residential construction, elevated leverage limits the company's ability to invest, pursue opportunistic M&A, or absorb demand shocks without further restructuring or cash generation improvements.

Goodwill Impairment & One-time Loss

A large noncash goodwill impairment signals that prior acquisition assumptions underperformed and reduces shareholders' equity. This weakens the firm's acquisition currency, raises the risk of further write-downs, and highlights execution or valuation shortcomings tied to the company's M&A strategy.

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

Weak profitability and declining TTM revenue (net margin -12% and revenue growth -12.6%) pressure results, and leverage has increased (debt-to-equity 1.18). Offsetting this, cash generation has improved with strong free cash flow growth, but the low operating cash flow to net income ratio (0.27) suggests quality-of-earnings risk.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 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: Neutral
• Last Price: 20.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NX, the sentiment is Neutral. The current price of 20.53 is below the 20-day moving average (MA) of 21.20, above the 50-day MA of 18.65, and above the 200-day MA of 17.23, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 12.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NX.

Quanex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBI	64 Neutral	$966.22M	20.71	8.64%	―	-10.84%	-53.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
APOG	59 Neutral	$856.53M	21.53	7.73%	2.77%	1.19%	-56.98%
NX	55 Neutral	$943.12M	-3.74	-28.88%	2.12%	43.81%	-584.11%
ROCK	54 Neutral	$1.34B	-30.08	13.29%	―	-9.21%	-97.43%
BXC	49 Neutral	$518.58M	-36,622.22	2.20%	―	-0.19%	-50.51%
JELD	42 Neutral	$168.77M	-0.27	-155.46%	―	-15.28%	-350.51%

Quanex Corporate Events

Quanex Declares Quarterly Cash Dividend, Signals Ongoing Stability

On February 26, 2026, Quanex Building Products Corporation announced that its Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock. The dividend will be paid on March 31, 2026, to shareholders of record as of March 17, 2026.

The decision to maintain a regular cash dividend underlines Quanex’s ongoing commitment to returning capital to shareholders and may signal confidence in the company’s cash generation and financial stability. The payout reinforces the company’s role as a steady income vehicle for investors while it continues to pursue growth across its diversified building-products and adjacent markets.

The most recent analyst rating on (NX) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.

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.