📊 NX Key Takeaways
Is Quanex Building Products CORP (NX) a Good Investment?
Despite exceptional 43.8% revenue growth, Quanex is unable to generate profits or positive cash flow, posting a net loss of $721K on $871.5M in sales. Critically, interest coverage of 0.9x indicates the company cannot service its $678.9M debt burden from operating earnings, while negative operating cash flow of -$1.3M and free cash flow of -$23.6M signal severe operational distress masking the topline growth.
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.
Quanex Building Products CORP Key Strengths (NX)
- Strong revenue growth of 43.8% YoY demonstrates market demand
- Solid balance sheet structure with 2.28x current ratio and manageable 0.93x debt-to-equity ratio
- Adequate short-term liquidity with $63.7M cash and 1.23x quick ratio
- 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
- Negative operating cash flow (-$1.3M) and free cash flow (-$23.6M) despite positive operating income indicates severe cash generation problems
- Interest coverage ratio of 0.9x means operating income cannot cover debt service obligations, signaling potential default risk
- Profitability collapse with -0.1% net margin and -0.02 diluted EPS (down 703% YoY) reveals revenue growth is not translating to earnings quality
- Razor-thin 2.5% operating margin on $871.5M revenue suggests structural cost or pricing issues
- 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 trend - must return to positive to validate business sustainability
- Interest coverage ratio - must exceed 1.5x to reduce debt service risk
- Net margin expansion - critical to determine if losses are temporary or structural
- Interest coverage
- Free cash flow margin
Quanex Building Products CORP (NX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.28x 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 |
|---|---|---|---|
| Q2 2026 | $452.5M | -$721.0K | $-0.02 |
| 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 |
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 Grade of C from Claude (D) and ChatGPT (C) with 78% 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. Solid balance sheet structure with 2.28x current ratio and manageable 0.93x debt-to-equity ratio. ChatGPT: Strong top-line growth momentum. Solid liquidity profile (current and quick ratios).
What are the risks of investing in NX?
Claude: Negative operating cash flow (-$1.3M) and free cash flow (-$23.6M) despite positive operating income indicates severe cash generation problems. Interest coverage ratio of 0.9x means operating income cannot cover debt service obligations, signaling potential default risk. 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 $871.5M.
Does NX pay dividends?
Quanex Building Products CORP pays dividends, with $7.3M 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 $-0.02.
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 grade reflects both perspectives for balanced insights.
What is NX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Quanex Building Products CORP has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NX stock overvalued or undervalued?
Valuation metrics for NX: ROE of -0.1% (sector avg: 14%), net margin of -0.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NX's AI grade for 2026?
Our dual AI analysis gives Quanex Building Products CORP a combined C grade 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 $-1.3M, with capital expenditures of $22.3M. FCF margin is -2.7%.
How does NX compare to other Materials stocks?
Vs Materials sector averages: Net margin -0.1% (avg: 10%), ROE -0.1% (avg: 14%), current ratio 2.28 (avg: 1.6).