Quanex (NX) AI Stock Analysis

• Market Cap: $662.46M
• Dividend Yield: 2.25%
• Average Volume (3M): 672.91K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.84
• Revenue Growth: 70.18%
• EPS Growth: -374.22%
• Country: US
• Employees: 7,068
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.69
• Shares Outstanding: 45,876,840
• 10 Day Avg. Volume: 719,229
• 30 Day Avg. Volume: 672,912
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.56
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: -13.37
• 1Y Price Target: $16.00
• Price Target Upside: 8.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $16.00 ▲(8.47% Upside)

Quanex's stock score is primarily impacted by financial performance challenges, including negative profitability and high leverage. Technical analysis indicates bearish momentum, while valuation metrics reflect market skepticism. The earnings call provided some positive insights, but significant risks remain.

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, 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 engineered products in the fenestration and cabinet components markets. The company benefits from a diverse customer base that includes manufacturers, distributors, and builders, which helps to mitigate risks associated with market fluctuations. Key revenue streams include the sale of window and door frames, insulated glass units, and cabinetry components. Additionally, Quanex has formed strategic partnerships with other companies and industry stakeholders to expand its market reach and enhance product offerings. The company's focus on research and development also drives innovation, allowing it to introduce new products that meet evolving customer needs and regulatory requirements, further bolstering its revenue growth.

Quanex Financial Statement Overview

Summary

Quanex shows solid revenue growth but faces challenges with declining net income and operating margins, affecting profitability metrics. The balance sheet is stable with manageable leverage, but cash flow performance has weakened, requiring 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	1.84B	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: Negative
• Last Price: 14.75
• 50DMA: Negative
• 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 Negative. The current price of 14.75 is above the 20-day moving average (MA) of 14.67, below the 50-day MA of 18.15, and below the 200-day MA of 19.31, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, 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
ROCK	74 Outperform	$1.96B	15.89	12.23%	―	-7.49%	10.79%
APOG	72 Outperform	$947.52M	18.78	10.66%	2.33%	-0.77%	-52.02%
JBI	66 Neutral	$1.39B	32.39	8.02%	―	-14.06%	-65.38%
BXC	63 Neutral	$581.43M	21.74	4.57%	―	-2.32%	-21.44%
NX	49 Neutral	$662.46M	33.84	-43.35%	2.25%	70.18%	-374.22%
JELD	46 Neutral	$419.33M	-1.16	-74.46%	―	-15.16%	-1232.39%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Quanex Corporate Events

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.