Quanex Building Products Corporation

Quanex Building Products Corporation

NXยทNYSE

$18.13

-0.22%
IndustrialsConstruction

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.

At a Glance

Live Snapshot
Market Cap$832.86M
EPS-5.4300
P/E Ratio-3.34
Earnings Date06/04/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -3.3).

Valuation inputs: P/E -3.3, earnings yield N/A, momentum -0.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -34.5%, ROIC -11.2%).

Profitability stack: net margin -13.7%, ROE -34.5%, ROIC -11.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +63.1%, momentum -0.2%, net margin -13.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Quanex Building Products Corporation Market vs Earnings Trajectory

NX ยท NYSE

Loading price and EPS data...

Quanex Building Products Corporation

Quanex Building Products Corporation Fair Value Envelope

NX ยท NYSE

Our analysis suggests that NX has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $18.13, this represents a potential HIDDEN relative to our calculated worth for Quanex Building Products Corporation.

Intrinsic Value
Current Price: $18.13
3Y-303.0%
5Y-560.0%
10Y+9791.0%
3Y+50.0%
5Y+116.0%
10Y+98.0%
3Y-384.0%
5Y-752.0%
10Y+13391.0%
3Y+68.0%
5Y+64.0%
10Y+91.0%
3Y+58.0%
5Y+36.0%
10Y+108.0%
3Y+172.0%
5Y+185.0%
10Y+152.0%
Quanex Building Products Corporation

Quanex Building Products Corporation Profit Bridge

NX ยท NYSE
Revenue1.84B
Cost of Goods Sold (1.34B)
Gross Profit499.23M
Operating Expenses (693.18M)
Operating Income-193.95M
Interest Expense (55.81M)
Other Income/Expense-48.64M
Pretax Income-242.59M
Income Tax (8.21M)
Net Income-250.81M
Net Income
-250.81M

Profitability Analysis

Gross Margin

27.2%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

-10.6%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-13.6%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

27.17%
Gross Profit Margin
14%
3Y+24.0%
5Y+20.0%
10Y+16.0%
-10.55%
Operating Profit Margin
-346%
3Y-216.0%
5Y-263.0%
10Y-369.0%
-13.65%
Net Profit Margin
-628%
3Y-289.0%
5Y-402.0%
10Y+6714.0%
-34.54%
Return on Equity
-1156%
3Y-282.0%
5Y-419.0%
10Y+6734.0%
-12.74%
Return on Assets
-994%
3Y-205.0%
5Y-329.0%
10Y+5250.0%
-11.21%
Return on Invested Capital
-643%
3Y-174.0%
5Y-253.0%
10Y-732.0%
NX

Quanex Building Products Corporation Cash Conversion Engine

NX ยท NYSE
Net Income-250.81M
Depreciation & Amortization103.44M
Stock-Based Compensation3.69M
Change in Working Capital12.54M
Others314.57M
Capital Expenditures-62.64M
Free Cash Flow102.25M

Cash Flow Quality Analysis

FCF Conversion Rate

-40.8%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

38.0%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+97.7%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$12.54M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

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Quanex Building Products Corporation Funding & Solvency Profile

NX ยท NYSE
Cash & Cash Equivalents62.31M
Net Receivables189.24M
Inventory270.60M
Other Current Assets46.52M
Total Current Assets569 M
Property, Plant & Equipment580.92M
Goodwill & Intangible Assets819.79M
Long-Term Investments0.00
Other Non-Current Assets5.82M
Total Non-Current Assets587 M
Total Assets
1.98B

Financial Health Analysis

Current Ratio

2.31x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.71x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

323 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

29% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.

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Quanex Building Products Corporation Street Expectations Map

NX ยท NYSE

No Target Data

No analyst price targets available for nx.

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Quanex Building Products Corporation Insider Positioning

NX ยท NYSE

During the last 12 months, insiders have purchased $53K and sold $3.23M worth of NX shares, resulting in $3.18M of net selling activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

200.0K

3.23M

Net Activity

-3.2M

-$3.23M

6-9 Months

Bought

3.5K

53.23K

Sold

0

0.00

Net Activity

+53K

+$53K

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
HBE

Hughes Bradley E.

Director

3.5K sharesโ€ข1 transactions

$53K

Top Sellers

1
TCPG

Teleios Capital Partners Gmbh

10 Percent Owner, Other: Observer Seat On Board

200.0K sharesโ€ข2 transactions

$3.23M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $3.18M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.02:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

Balanced

1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.

0.43%
Dividend Yield
-24%
3Y+37.0%
5Y+22.0%
10Y+99.0%
ย 

nx Dividend History

NX
10Y CAGR +7%
Latest $0.08
Annual $0.4
5 year growth trend
Last Period: +0%