Quanex (NX) AI Stock Analysis

• Market Cap: $887.74M
• Dividend Yield: 1.66%
• Average Volume (3M): 431.64K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.94
• Revenue Growth: 47.66%
• EPS Growth: -75.65%
• Country: US
• Employees: 7,068
• Sector: Industrials
• Sector Strength: 85
• Industry: Construction
• EPS (TTM): 0.60
• Shares Outstanding: 45,973,156
• 10 Day Avg. Volume: 711,098
• 30 Day Avg. Volume: 431,644
• PEG Ratio: 0.05
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.89
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $38.00
• Price Target Upside: 99.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $21.00 ▲(10.12%Upside)

Quanex exhibits strong revenue growth and successful integration efforts, particularly with acquisitions, which boost its earnings outlook. However, high P/E ratio suggests overvaluation, and declining net income and cash flow raise concerns over profitability. Positive technical indicators support short-term momentum, while the earnings call provides a balanced outlook considering both opportunities and risks.

Positive Factors

Earnings

Quanex Building Products Corp. reported better than anticipated results as revenue, EBITDA, and EPS came in ahead of consensus estimates and prior guidance.

Strategic Growth

The Tyman deal closure marks a major step in Quanex’s strategic roadmap by significantly increasing the company’s scale, global footprint, and product offering.

Valuation

Quanex trades at the lowest P/E multiple in the last 15+ years, offering a valuation disconnect with its growth potential.

Negative Factors

Consumer Confidence

Seemingly little upside to end markets near term, with consumer confidence affected by significant unknowns in the macro backdrop and future costs.

Market Demand

Severe weather and soft market demand weighed on revenue for both legacy Quanex and Tyman operations.

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 through the manufacturing and sale of specialized building components. The company's primary revenue streams include the sale of window and door components, such as extruded vinyl profiles, insulating glass spacer systems, and screens, which are critical in constructing energy-efficient and sustainable buildings. Quanex partners with OEMs in the fenestration market, leveraging long-term relationships to secure steady demand for its products. Additionally, the company benefits from its aftermarket sales, providing replacement parts and upgrades that maintain or improve the performance of existing infrastructure. Strategic acquisitions and investments in innovative technologies also contribute to Quanex's financial performance, enabling the company to expand its product offerings and market reach.

Quanex Financial Statement Overview

Summary

Quanex demonstrates solid revenue growth but faces challenges with declining net income and operating margins, which affect its profitability metrics. The balance sheet is stable, with manageable leverage, but cash flow performance has weakened, warranting close monitoring of operational efficiency and cost control strategies.

Income Statement

The company shows a steady increase in revenue with a TTM revenue of $1.63 billion, up from $1.28 billion in the previous year. Gross profit margin improved slightly, indicating efficient cost management. However, net profit margin dropped due to a significant decline in net income, suggesting rising costs or operational challenges. The EBIT and EBITDA margins also show a decline, indicating potential pressures on core operational profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.92, indicating moderate leverage. Return on equity has decreased significantly due to lower net income, which could impact future profitability. The company's equity ratio remains healthy, suggesting a strong capital base relative to its assets.

Cash Flow

Operating cash flow has decreased from the previous year, impacting the free cash flow, which shows a notable decline as well. The free cash flow to net income ratio remains stable, indicating consistent conversion of profits to cash. However, the drop in free cash flow growth rate raises concerns about the company's ability to generate cash from operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.63B	1.28B	1.13B	1.22B	1.07B	851.57M
	Gross Profit
400.70M	305.62M	277.52M	268.50M	240.61M	192.82M
	EBIT
60.22M	54.83M	110.70M	111.28M	81.87M	55.27M
	EBITDA
152.97M	123.00M	148.05M	152.43M	125.36M	102.77M
	Net Income Common Stockholders
17.06M	33.06M	82.50M	88.34M	56.98M	38.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.63M	97.74M	58.47M	55.09M	40.06M	51.62M
	Total Assets
2.31B	2.32B	831.14M	724.62M	717.32M	691.59M
	Total Debt
926.65M	892.98M	116.39M	87.69M	106.50M	169.75M
	Net Debt
864.02M	795.23M	57.91M	32.59M	66.44M	118.13M
	Total Liabilities
1.31B	1.31B	285.59M	259.78M	297.54M	335.83M
	Stockholders Equity
1.00B	1.01B	545.55M	464.83M	419.78M	355.76M
Cash Flow		Free Cash Flow
21.41M	51.73M	109.66M	64.84M	54.58M	75.07M
	Operating Cash Flow
67.85M	88.81M	147.05M	97.97M	78.59M	100.80M
	Investing Cash Flow
-429.67M	-420.59M	-128.44M	-32.96M	-18.71M	-25.22M
	Financing Cash Flow
376.72M	385.16M	-16.15M	-45.88M	-71.86M	-55.12M

Quanex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 19.07 is above the 20-day moving average (MA) of 18.08, above the 50-day MA of 17.46, and below the 200-day MA of 23.11, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 55.37 is Neutral, 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
NSSC	81 Outperform	$984.12M	22.47	27.48%	2.03%	-1.05%	-2.78%
GIC	76 Outperform	$1.02B	16.71	22.15%	3.98%	-0.79%	-13.64%
GRC	73 Outperform	$933.98M	21.01	12.06%	2.08%	0.92%	21.96%
ATRO	68 Neutral	$1.23B	―	-1.35%	―	13.73%	86.81%
HLIO	68 Neutral	$1.12B	30.04	4.27%	1.10%	-5.39%	12.14%
NX	66 Neutral	$887.74M	32.52	2.18%	1.66%	47.66%	-75.65%
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.02%

Quanex Corporate Events

Quanex Declares Quarterly Dividend of $0.08 Per Share

On May 30, 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. This dividend is payable on June 30, 2025, to shareholders of record as of June 16, 2025. This announcement reflects Quanex’s ongoing commitment to returning value to its shareholders and may positively impact the company’s market positioning by reinforcing investor confidence.

The most recent analyst rating on (NX) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Quanex stock, see the NX Stock Forecast page.