📊 NX Key Takeaways
Is Quanex Building Products CORP (NX) a Good Investment?
Despite 43.8% revenue growth, Quanex is operationally unprofitable with negative cash flows and critically weak interest coverage of only 0.2x, indicating the company cannot service its $678.6M debt load from operations. Negative operating cash flow (-$20.2M) and collapsed diluted EPS (-703% YoY) reveal deteriorating financial health masked by unprofitable revenue expansion.
Revenue grew sharply (+43.8% YoY), but profitability remains extremely weak with a 0.7% operating margin and negative net income, translating into negative operating cash flow and a -7.7% FCF margin. Leverage is moderate by D/E, yet interest coverage at 0.2x signals strained debt service despite acceptable liquidity (2.31x current, 1.21x quick). Until margins improve and cash generation turns positive, fundamentals are unfavorable.
Why Buy Quanex Building Products CORP Stock? NX Key Strengths
- Strong revenue growth of 43.8% YoY demonstrates market demand
- Adequate short-term liquidity with current ratio of 2.31x provides near-term buffer
- Moderate leverage with Debt/Equity ratio of 0.93x
- Strong top-line growth momentum
- Solid liquidity profile (current and quick ratios)
- Moderate leverage by D/E with sizable equity base
NX Stock Risks: Quanex Building Products CORP Investment Risks
- Critical cash burn: negative operating cash flow (-$20.2M) and free cash flow (-$31.5M) are structurally unsustainable
- Severe debt servicing crisis: interest coverage of 0.2x means operating income covers only 20% of interest obligations
- Profitability collapse: negative net income despite revenue growth, with net margin of -1.0% and EPS declining 703% YoY
- Quality of growth concerns: revenue expansion not translating to profit or cash generation suggests unprofitable business model
- Negative returns: ROE of -0.6% and ROA of -0.2% are destroying shareholder value
- Very weak interest coverage indicating debt service/refinancing risk
- Negative operating and free cash flow
- Thin/negative profitability with potential margin pressure
Key Metrics to Watch
- Operating cash flow (must urgently return to positive territory)
- Interest coverage ratio (needs to exceed 1.5x minimum for sustainability)
- Operating margin (requires significant expansion from current 0.7%)
- Free cash flow (must eliminate negative burn)
- Debt covenant compliance and refinancing capability
- Interest coverage
- Free cash flow margin
Quanex Building Products CORP (NX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.31x current ratio provides a solid financial cushion.
NX Profit Margin, ROE & Profitability Analysis
NX vs Materials Sector: How Quanex Building Products CORP Compares
How Quanex Building Products CORP compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Quanex Building Products CORP Stock Overvalued? NX Valuation Analysis 2026
Based on fundamental analysis, Quanex Building Products CORP shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Quanex Building Products CORP Balance Sheet: NX Debt, Cash & Liquidity
NX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Quanex Building Products CORP's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.50 reflects profitable operations.
NX Revenue Growth, EPS Growth & YoY Performance
NX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $400.0M | -$4.1M | $-0.09 |
| Q3 2025 | $280.3M | $6.2M | $0.77 |
| Q2 2025 | $266.2M | $5.6M | $0.12 |
| Q1 2025 | $239.2M | $6.2M | $0.19 |
| Q3 2024 | $280.3M | $1.9M | $0.77 |
| Q2 2024 | $266.2M | $1.9M | $0.46 |
| Q1 2024 | $239.2M | $1.9M | $0.06 |
| Q3 2023 | $299.6M | $1.9M | $0.78 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Quanex Building Products CORP Dividends, Buybacks & Capital Allocation
NX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Quanex Building Products CORP (CIK: 0001423221)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NX
What is the AI rating for NX?
Quanex Building Products CORP (NX) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NX's key strengths?
Claude: Strong revenue growth of 43.8% YoY demonstrates market demand. Adequate short-term liquidity with current ratio of 2.31x provides near-term buffer. ChatGPT: Strong top-line growth momentum. Solid liquidity profile (current and quick ratios).
What are the risks of investing in NX?
Claude: Critical cash burn: negative operating cash flow (-$20.2M) and free cash flow (-$31.5M) are structurally unsustainable. Severe debt servicing crisis: interest coverage of 0.2x means operating income covers only 20% of interest obligations. ChatGPT: Very weak interest coverage indicating debt service/refinancing risk. Negative operating and free cash flow.
What is NX's revenue and growth?
Quanex Building Products CORP reported revenue of $409.1M.
Does NX pay dividends?
Quanex Building Products CORP pays dividends, with $3.6M distributed to shareholders in the trailing twelve months.
Where can I find NX SEC filings?
Official SEC filings for Quanex Building Products CORP (CIK: 0001423221) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NX's EPS?
Quanex Building Products CORP has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Quanex Building Products CORP has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NX stock overvalued or undervalued?
Valuation metrics for NX: ROE of -0.6% (sector avg: 14%), net margin of -1.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NX stock in 2026?
Our dual AI analysis gives Quanex Building Products CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NX's free cash flow?
Quanex Building Products CORP's operating cash flow is $-20.2M, with capital expenditures of $11.3M. FCF margin is -7.7%.
How does NX compare to other Materials stocks?
Vs Materials sector averages: Net margin -1.0% (avg: 10%), ROE -0.6% (avg: 14%), current ratio 2.31 (avg: 1.6).