Quanex (NX) AI Stock Analysis

• Market Cap: $749.64M
• Dividend Yield: 2.12%
• Average Volume (3M): 605.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 43.81%
• EPS Growth: -584.11%
• Country: US
• Employees: 7,068
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.01
• Shares Outstanding: 45,933,815
• 10 Day Avg. Volume: 844,938
• 30 Day Avg. Volume: 605,634
• 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: 2.11
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: -21.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.1
• Revenue Forecast (FY): $1.84B

• Rating: 52 Neutral
• Price Target: $19.00 ▲(12.69% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by the sharp swing into operating and net losses alongside higher leverage, despite solid TTM free cash flow. Technicals also lean weak/oversold, indicating limited near-term momentum. Offsetting these risks are management’s FY2026 guidance for meaningful margin expansion and revenue growth, plus a modest dividend and generally stable corporate/governance signals.

Positive Factors

Cash generation

Sustained positive operating cash flow and healthy trailing free cash flow provide a durable internal funding source to support capex, dividend payments and debt reduction. Strong cash conversion preserves optionality during margin recovery and funds strategic initiatives without sole reliance on external financing.

Revenue growth momentum

Robust historical top-line growth and management's explicit guidance for double-digit sales expansion indicate lasting demand for fenestration components. Sustained revenue growth supports scale economies, cross-sell opportunities and the potential to recapture operating leverage as volumes normalize over the medium term.

Product & operational initiatives

Ongoing product relaunches, ERP rationalization and AI-driven process improvements are structural moves to raise margin and operational resilience. Combined with Monterrey plant stabilization, these initiatives should reduce recurring disruption, improve throughput and support sustainable margin expansion over multiple quarters.

Negative Factors

Profitability deterioration

Deep negative operating and net margins signal that recent growth has yet to translate into profitable scale. Persistent margin weakness undermines return on capital and limits retained earnings, meaning management must deliver structural cost or pricing improvements to restore durable profitability and ROIC.

Higher leverage

Marked increase in leverage materially reduces financial flexibility and raises refinancing and interest risks. Until adjusted EBITDA and cash flow sustainably improve and leverage approaches management's ~2.0x target, the balance sheet constrains investments, strategic optionality and increases vulnerability to downturns.

Extended cash conversion cycle

A materially longer working-capital cycle from the Tyman integration forces seasonal borrowing and delays cash realization from sales. This structural drag on liquidity can constrain the pace of deleveraging and requires sustained focus on receivables, inventory and payables optimization to normalize cash flow over several years.

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

Strong TTM revenue growth (+49.2%) and positive cash generation (TTM operating cash flow ~$177M; free cash flow ~$115M) are offsets, but profitability has deteriorated sharply (EBIT margin ~-10%, net margin ~-13.6%) and leverage is meaningfully higher (debt-to-equity ~1.18; ROE about -29% TTM), reducing financial flexibility until margins recover.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up sharply (+49.2%), but profitability has deteriorated materially: gross margin is steady around ~27%, yet operating results are deeply negative (EBIT margin ~-10%) and net margin is also meaningfully negative (~-13.6%). The company moved from positive earnings in FY2024 (net margin ~2.6%) to sizable losses in FY2025 and TTM, indicating that recent growth has not translated into sustainable profits.

Balance Sheet

Leverage has increased substantially versus prior years, with debt-to-equity rising to ~1.18 in FY2025/TTM from ~0.21–0.25 in FY2021–FY2023, and equity also down versus FY2024. Returns on equity are currently negative (about -29% TTM), reflecting the loss-making profile. While the balance sheet is not extreme for the industry, the combination of higher leverage and negative returns reduces financial flexibility if weak profitability persists.

Cash Flow

Cash generation is a clear bright spot: TTM operating cash flow is solid (~$177M) and free cash flow is positive (~$115M), with strong recent free cash flow growth. However, cash conversion is not fully reassuring given the large net loss—free cash flow is still negative relative to net income in aggregate (i.e., not enough to offset reported losses), and operating cash flow coverage is below 1, suggesting earnings weakness is still pressuring overall financial quality despite positive cash flow.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	1.85B	1.84B	1.28B	1.13B	1.22B	1.07B
Gross Profit	481.19M	499.23M	305.62M	277.52M	268.50M	240.61M
EBITDA	-75.23M	-83.34M	123.00M	148.05M	152.43M	125.36M
Net Income	-239.99M	-250.81M	33.06M	82.50M	88.34M	56.98M
Balance Sheet
Total Assets	1.98B	1.97B	2.32B	831.14M	724.62M	717.32M
Cash, Cash Equivalents and Short-Term Investments	62.31M	76.02M	97.74M	58.47M	55.09M	40.06M
Total Debt	892.62M	853.73M	892.98M	116.39M	87.69M	106.50M
Total Liabilities	1.25B	1.24B	1.31B	285.59M	259.78M	297.54M
Stockholders Equity	730.35M	726.18M	1.01B	545.55M	464.83M	419.78M
Cash Flow
Free Cash Flow	94.89M	102.25M	51.73M	109.66M	64.84M	54.58M
Operating Cash Flow	157.20M	164.90M	88.81M	147.05M	97.97M	78.59M
Investing Cash Flow	-61.79M	-62.01M	-420.59M	-128.44M	-32.96M	-18.71M
Financing Cash Flow	-89.59M	-127.48M	385.16M	-16.15M	-45.88M	-71.86M

Quanex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 16.86 is below the 20-day moving average (MA) of 18.60, below the 50-day MA of 19.22, and below the 200-day MA of 17.17, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 31.40 is Neutral, neither overbought nor oversold. The STOCH value of 19.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NX.

Quanex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JBI	62 Neutral	$729.01M	17.16	9.76%	―	-10.84%	-53.49%
APOG	59 Neutral	$682.52M	11.74	8.07%	2.77%	1.19%	-56.98%
ROCK	54 Neutral	$1.15B	15.14	9.87%	―	-9.21%	-97.43%
NX	52 Neutral	$749.64M	-52.26	-30.23%	2.12%	43.81%	-584.11%
BXC	45 Neutral	$356.68M	2,188.09	2.20%	―	-0.19%	-50.51%
JELD	41 Neutral	$106.77M	-0.34	-155.46%	―	-15.28%	-350.51%

Quanex Corporate Events

Quanex Shareholders Back Board, Pay and Auditor Choices

On February 26, 2026, Quanex held its Annual Meeting of Stockholders, where 39,532,896 of 45,938,400 eligible shares were represented in person or by proxy. Eight directors were elected to terms expiring at the 2027 Annual Meeting, each receiving strong majority support, with favorable vote percentages generally above 90%, underscoring continued investor confidence in the board’s composition.

Shareholders also approved, on an advisory basis, the compensation of Quanex’s named executive officers, with 97.82% of votes cast in favor. In addition, investors ratified the appointment of KPMG LLP as independent auditor for the fiscal year ending October 31, 2026, with 99.69% support, reinforcing continuity in the company’s executive pay practices and external financial oversight.

The most recent analyst rating on (NX) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.

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.