Quanex Building Products Corp.

  • Market Cap: Small Cap
  • Industry: Building Products
  • ISIN: US7476191041
USD
17.96
0.7 (4.06%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
The AZEK Co., Inc.
Quanex Building Products Corp.
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SPX Technologies, Inc.
Masonite International Corp.
Tecnoglass, Inc.
Janus International Group, Inc.
PGT Innovations, Inc.
Griffon Corp.
Apogee Enterprises, Inc.
American Woodmark Corp.

Why is Quanex Building Products Corp. ?

1
High Management Efficiency with a high ROE of 12.40%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.21 times
3
Poor long term growth as Net Sales has grown by an annual rate of 17.08% over the last 5 years
4
Flat results in Jul 25
  • INTEREST(HY) At USD 28.16 MM has Grown at 1,440.37%
  • OPERATING CASH FLOW(Y) Lowest at USD 82.13 MM
  • ROCE(HY) Lowest at -43.35%
5
Risky -
  • The stock is trading risky as compared to its average historical valuations
  • Over the past year, while the stock has generated a return of -47.75%, its profits have fallen by -74%
6
High Institutional Holdings at 100%
  • These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
  • Their stake has increased by 1.22% over the previous quarter.
7
Below par performance in long term as well as near term
  • Along with generating -47.75% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Quanex Building Products Corp. should be less than 10%
  2. Overall Portfolio exposure to Building Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Quanex Building Products Corp. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Quanex Building Products Corp.
-11.74%
-0.91
54.85%
S&P 500
13.68%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
16.63%
EBIT Growth (5y)
16.22%
EBIT to Interest (avg)
20.33
Debt to EBITDA (avg)
0.21
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
1.62
Tax Ratio
20.22%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
16.62%
ROE (avg)
12.40%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.19
EV to EBIT
12.06
EV to EBITDA
6.44
EV to Capital Employed
1.11
EV to Sales
0.78
PEG Ratio
0.12
Dividend Yield
122.32%
ROCE (Latest)
9.16%
ROE (Latest)
8.46%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

28What is working for the Company
INTEREST COVERAGE RATIO(Q)

Highest at 509.01

OPERATING CASH FLOW(Y)

Highest at USD 164.9 MM

NET SALES(9M)

At USD 1,437.6 MM has Grown at 38.4%

NET PROFIT(Q)

At USD 19.75 MM has Grown at 156.68%

DIVIDEND PAYOUT RATIO(Y)

Highest at 18.64%

RAW MATERIAL COST(Y)

Fallen by -26.81% (YoY

OPERATING PROFIT(Q)

Highest at USD 68.55 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14 %

PRE-TAX PROFIT(Q)

Highest at USD 35.03 MM

-11What is not working for the Company
INTEREST(HY)

At USD 27.69 MM has Grown at 49.05%

ROCE(HY)

Lowest at -28.88%

DEBT-EQUITY RATIO (HY)

Highest at 106.81 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.44 times

Here's what is working for Quanex Building Products Corp.

Interest Coverage Ratio
Highest at 509.01 and Grown
In each period in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit
At USD 35.03 MM has Grown at 589.47%
over average net sales of the previous four periods of USD 5.08 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit
At USD 19.75 MM has Grown at 156.68%
over average net sales of the previous four periods of USD 7.69 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales
At USD 1,437.6 MM has Grown at 38.4%
Year on Year (YoY)
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Operating Cash Flow
Highest at USD 164.9 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit
Highest at USD 68.55 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin
Highest at 14 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at USD 35.03 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Dividend Payout Ratio
Highest at 18.64%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Fallen by -26.81% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Quanex Building Products Corp.

Interest
At USD 27.69 MM has Grown at 49.05%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio
Highest at 106.81 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio
Lowest at 5.44 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio