Quanex (NX) AI Stock Analysis

• Market Cap: $625.30M
• Dividend Yield: 2.31%
• Average Volume (3M): 588.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 70.18%
• EPS Growth: -374.22%
• Country: US
• Employees: 7,068
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): N/A
• Shares Outstanding: 45,876,840
• 10 Day Avg. Volume: 620,501
• 30 Day Avg. Volume: 588,031
• PEG Ratio: -0.50
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 20.46
• Enterprise Value/Market Cap: 2.71
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: -13.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $12.50 ▼(-2.87% Downside)

Quanex's overall stock score is primarily impacted by its financial performance, which shows significant challenges in profitability and leverage. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to ongoing losses. The earnings call provided some positive insights, particularly in revenue growth and cost synergies, but these are overshadowed by substantial impairments and operational issues.

Positive Factors

Revenue Growth

Strong revenue growth, driven by strategic acquisitions, indicates robust demand and effective market expansion, supporting long-term business sustainability.

Cost Synergy Realization

Exceeding cost synergy expectations enhances operational efficiency, improving margins and competitiveness, which are crucial for long-term profitability.

Market Share Gains

Gaining market share in Europe strengthens Quanex's competitive position, supporting revenue stability and growth in a key market.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term financial health.

Profitability Challenges

Negative profitability highlights operational inefficiencies, which could hinder future investments and growth opportunities if not addressed.

Operational Challenges

Operational issues in key facilities can disrupt production and increase costs, affecting overall efficiency and profitability.

Quanex Business Overview & Revenue Model

Company Description

Quanex Building Products Corporation (NX) is a leading manufacturer of engineered materials and components for the building products industry. The company operates primarily in two segments: Fenestration and Cabinetry. Quanex offers a wide range of products, including energy-efficient window and door systems, cabinetry components, and other building materials that enhance performance and sustainability in residential and commercial applications.

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 profitability challenges, with negative net profit margins and a high debt-to-equity ratio. However, positive revenue growth and improved cash flow generation provide some optimism. Overall, financial health requires strategic improvements.

Income Statement

Quanex's income statement reveals a challenging period with a negative net profit margin of -15.45% in the TTM, indicating significant losses. The gross profit margin is relatively stable at 24.18%, but the negative EBIT and EBITDA margins highlight operational inefficiencies. Despite a revenue growth rate of 13.23% in the TTM, the company struggles with profitability, which is a concern for future financial stability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.22 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -30.72%, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio remains reasonable, suggesting some level of asset backing. The company needs to manage its debt levels to improve financial health.

Cash Flow

Quanex's cash flow statement shows a positive free cash flow growth rate of 28.35% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.31, suggesting some cash flow challenges relative to earnings. The free cash flow to net income ratio of 0.33 highlights the company's ability to convert earnings into cash, albeit at a lower level. Overall, cash flow management appears to be a relative strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.28B	1.13B	1.22B	1.07B	851.57M
Gross Profit	444.83M	305.62M	277.52M	268.50M	240.61M	192.82M
EBITDA	-126.99M	123.00M	148.05M	152.43M	125.36M	102.77M
Net Income	-284.29M	33.06M	82.50M	88.34M	56.98M	38.50M
Balance Sheet
Total Assets	1.97B	2.32B	831.14M	724.62M	717.32M	691.59M
Cash, Cash Equivalents and Short-Term Investments	66.27M	97.74M	58.47M	55.09M	40.06M	51.62M
Total Debt	875.41M	892.98M	116.39M	87.69M	106.50M	169.75M
Total Liabilities	1.26B	1.31B	285.59M	259.78M	297.54M	335.83M
Stockholders Equity	717.39M	1.01B	545.55M	464.83M	419.78M	355.76M
Cash Flow
Free Cash Flow	27.48M	51.73M	109.66M	64.84M	54.58M	75.07M
Operating Cash Flow	82.12M	88.81M	147.05M	97.97M	78.59M	100.80M
Investing Cash Flow	-437.91M	-420.59M	-128.44M	-32.96M	-18.71M	-25.22M
Financing Cash Flow	323.23M	385.16M	-16.15M	-45.88M	-71.86M	-55.12M

Quanex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.87 is below the 20-day moving average (MA) of 12.89, below the 50-day MA of 13.71, and below the 200-day MA of 17.16, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 81.34 is Negative, 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
BXC	66 Neutral	$503.38M	18.87	2.20%	―	-0.19%	-50.51%
APOG	64 Neutral	$823.44M	18.75	8.83%	2.63%	1.19%	-56.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ROCK	60 Neutral	$1.45B	657.30	13.29%	―	-9.21%	-97.43%
JBI	60 Neutral	$869.05M	19.55	8.64%	―	-10.84%	-53.49%
NX	50 Neutral	$625.30M	―	-43.35%	2.31%	70.18%	-374.22%
JELD	40 Underperform	$222.97M	―	-155.46%	―	-15.28%	-350.51%

Quanex Corporate Events

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.

The most recent analyst rating on (NX) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.

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.

The most recent analyst rating on (NX) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.

Quanex Building Products Reports Strong Q3 2025 Results

Quanex Building Products Corporation is a global manufacturer that partners with leading OEMs to provide innovative solutions across various markets, including windows, doors, solar, and cabinetry. The company operates primarily in the building products industry and is known for its material science expertise and process engineering capabilities.

Quanex Q3 2025 Earnings Call: Growth Amid Challenges

Quanex Building Products’ recent earnings call revealed a mixed sentiment, characterized by strong revenue growth and significant progress in cost synergy realization, primarily driven by the Tyman acquisition. However, these positives were tempered by a substantial noncash goodwill impairment, operational challenges in Mexico, and ongoing volume and consumer confidence challenges in North America and Europe.

Quanex Declares Quarterly Dividend for Shareholders

On August 29, 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 September 30, 2025, to shareholders of record as of September 16, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position in the building products industry.

The most recent analyst rating on (NX) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.