Quanex Building Products Corp

Industrials
Metal Fabrications
www.quanex.com

Earnings Score
Moat Score
Safety Score

Market Cap $958.90M
PE 13
Debt $54.10M
Cash $93.97M
EV $919.03M
FCF $89.45M

Earnings

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Sales & Net Margins

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Earnings	$74.36M
EBIT	$91.50M
ROE	13%
ROA	10%
FCF	$89.45M
Equity	$594.14M
Growth Stability	-325%
PE	12.9
PEG	0.71
PB	1.61
P/FCF	10.72
P/S	0.89
Price/Cash	0.1
Debt/Equity	0.09
Debt/FCF	0.6
Net Margins	6%
Gross Margins	25%
Op. Margins	8%
Earnings CAGR	22%
Sales Growth YoY	-6%
Sales Growth QoQ	5%
Sales CAGR	5%
FCF CAGR	5%
Equity CAGR	4%
Earnings Stability	0.45
Earnings Growth YoY	-20%
Earnings Growth QoQ	65%
Earnings CAGR 5Y	18%

Sales CAGR 5Y	7%
FCF CAGR 5Y	3%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	75%
Equity CAGR 3Y	14%
Market Cap	$958.90M
Revenue	$1.08B
Dividend Yield	1%
Payout Ratio	14%
Assets	$872.45M
Total Debt	$54.10M
Cash	$93.97M
Shares Outstanding	32.85M
EV	919.03M
Earnings Score	63%
Moat Score	89%
Safety Score	66%
Final Score	73%
Working Capital	173.53M
Current Ratio	2.36
Gross Profit	$268.59M
Shares Growth 3y	-0%
Equity Growth QoQ	5%
Equity Growth YoY	13%

Assets & ROA

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Stockholders Equity & ROE

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Quanex Building Products Corp is a manufacturer of components sold to original equipment manufacturers in the building products industry. It manufactures engineered products like window components that include flexible insulating glass spacers, extruded vinyl profiles, window and door screens, solar panel sealants and precision-formed metal and wood products among others. Its three operating segments are North American Fenestration being the key revenue driver, European Fenestration, and North American Cabinet Components. Geographically, it derives a majority of revenue from the United States.

SEC Filings

Direct access to Quanex Building Products Corp (NX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2022
- 10-K Oct 31
- 10-Q Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Quanex Building Products Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Quanex Building Products Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 22%

Stability 45%

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Quanex Building Products Corp Discounted Cash Flow

Fully customizable DCF calculator online for Quanex Building Products Corp.

Years

Calculation mode

= $1.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$89M	$94M	$99M	$105M	$111M	$117M	$123M	$130M	$137M	$144M	$152M	$1.5B
DCF		$86M	$82M	$79M	$76M	$72M	$69M	$67M	$64M	$61M	$59M	$587M
Value	$1.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Net Margins	2%	-0%	2%	3%	-5%	5%	5%	7%	7%	6%
ROA	-	5%	7%	5%	-4%	8%	11%	15%	13%	10%
ROE	-	-1%	5%	7%	-14%	11%	14%	19%	15%	13%

Bad Net Margins (5.98%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	TTM
Debt over FCF	-	5.62	5.35	2.71	2.22	1.58	0.98	0.5	0.64	0.6
Debt over Equity	0.15	0.75	0.59	0.54	0.48	0.33	0.13	0.07	0.13	0.09
Growth Stability	-	-	-	100%	-325%	-	100%	100%	100%	-325%

Good Debt/FCF ratio (0.6)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.09)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-325%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	CAGR 5Y
Revenue YoY growth	-	44%	-7%	3%	0%	-5%	26%	14%	-7%	7%
Earnings YoY growth	-	-112%	-1K%	41%	-277%	-182%	48%	55%	-7%	18%
Equity YoY growth	-	-7%	11%	-3%	-16%	8%	18%	11%	17%	14%
FCF YoY growth	-	33%	-8%	73%	-8%	5%	-27%	19%	69%	3%