# Quanex Building Products (NX.US)

Canonical: https://gigainvestors.com/s/NX

Analysis as of: 2026-10-16T07:30:48.152Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $19.32 per share; close as of 2026-10-15.

Estimated value: low $31.92 per share, central $36.25 per share, high $42.01 per share. Buy at or below the central value $36.25 per share. Valuation as of 2026-10-16T07:30:48.152Z; scenarios are not confidence intervals.

Expected annual return: 16.6% at the stated quote. About 16.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 1.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.05×

- FY2020: 0.06×

- FY2021: 0.08×

- FY2022: 0.09×

- FY2023: 0.10×

- FY2024: 0.04×

- FY2025: -0.11×

- LTM to Jul 2026: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.3%

- ROIC, second-lowest year: 3.5%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 22.5%

- Recent gross margin (lower of latest and 3-year median): 22.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.0%

- ROIC including acquisitions, ten-year median: 7.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 6.2%

- FY2018: 10.2%

- FY2019: 12.4%

- FY2020: 12.9%

- FY2021: 17.3%

- FY2022: 24.9%

- FY2023: 22.4%

- FY2024: 3.5%

- FY2025: -12.4%

- LTM to Jul 2026: 5.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 10.46×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $105M

- Net income, five-year total: $10M

- Return on incremental invested capital: -392.7%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 6.2 pp

- Working capital / revenue, final three-year average: 19.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.33×

- FY2022: 1.08×

- FY2023: 1.07×

- FY2024: 1.70×

- FY2025: 0.84×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.3% vs 3.5%

- Per-share earnings: 0.47 to 0.90 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.0%

- Ordinary dilution, 5-year annual growth: 7.1%

- Market cap gain: $91M

- Cumulative retained earnings: -$49M

- Diluted shares, 10-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 7.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.6%

- Per-share value change: $0.44

- Per-share value, starting three-year median: $0.47

- Per-share value, ending three-year median: $0.90

- Buybacks concentrated in cheaper years (correlation): -0.38

- Average buyback yield: 2.2%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $744M

- Cumulative net income, 10 years: $45M

- ROIC, first three-year median: 7.3%

- ROIC, last three-year median: 3.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.05

- FY2017: $0.54

- FY2018: $0.75

- FY2019: -$1.42

- FY2020: $1.17

- FY2021: $1.70

- FY2022: $2.66

- FY2023: $2.50

- FY2024: $0.90

- FY2025: -$5.43

### accounting: pass

- Sloan accruals: -21.1%

- Receivables to sales index (DSRI): 0.70×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 2.2%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.3%

- FY2017: -7.7%

- FY2018: -10.6%

- FY2019: -22.2%

- FY2020: -9.0%

- FY2021: -3.0%

- FY2022: -1.3%

- FY2023: -7.8%

- FY2024: -2.4%

- FY2025: -21.1%

## Holders

## Price story

Down 50% since Mar 2024 · sales +1.4%

Story as of 2026-10-16T09:59:18.055Z; price observation 2026-10-15.

Price needs cash profits to shrink 7.2% a year for ten years

### Sales · FY2025–2026

sales +1.4%; source https://www.sec.gov/Archives/edgar/data/1423221/000142322125000100/nx-20251031.htm; observed 2025-12-12.

- FY2017: $867M 

- FY2018: $890M 

- FY2019: $894M 

- FY2020: $852M 

- FY2021: $1.1B 

- FY2022: $1.2B 

- FY2023: $1.1B 

- FY2024: $1.3B 

- FY2025: $1.8B 

- FY2026: $1.9B 

### Gross margin · FY2026

gross margin 22.7%; source https://www.sec.gov/Archives/edgar/data/1423221/000142322125000100/nx-20251031.htm; observed 2025-12-12.

- FY2017: 22.4% 

- FY2018: 21.7% 

- FY2019: 22.3% 

- FY2020: 22.6% 

- FY2021: 22.4% 

- FY2022: 22.0% 

- FY2023: 24.5% 

- FY2024: 23.9% 

- FY2025: 27.2% 

- FY2026: 22.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1423221/000142322125000100/nx-20251031.htm (filed 2025-12-12); FY2025: revenue 1837641000; grossProfit 499228000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); NX.US: Quanex Building Products Corporation, together with its subsidiaries, manufactures and distributes components for original equipment manufacturers (OEM) in the building products industry in the United States, Europe, Canada, Asia, and internationally. It offers energy-efficient flexible insulating glass spacers, extruded vinyl profiles, window and door screens, precision-formed metal and wood products, window and door seals, and window and door hardware. The company also solar panel sealants, trim moldings, vinyl decking, water retention barriers, conservatory roof components, and commercial access solutions. It sells its products through sales representatives, direct sales force, distributors, and independent sales agents. Quanex Building Products Corporation was founded in 1927 and is based in Houston, Texas.

### Why customers stay

Margins ranged from 23.9% to 27.2% during 2023–25; it earns 11.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2023: grossProfit / revenue = 24.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2024: grossProfit / revenue = 23.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1423221/000142322125000100/nx-20251031.htm (filed 2025-12-12); FY2025: grossProfit / revenue = 27.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); 10-year return on capital observations [[2017,0.06179017451911129],[2018,0.10184853338111931],[2019,0.1236366414079687],[2020,0.1290546466605207],[2021,0.17281954851530693],[2022,0.24906603075101189],[2023,0.22379883523772914],[2024,0.034980576042386295],[2025,-0.12431317537882876],[2026,0.05871981579186973]]; median 0.11274258739454401. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 32.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2016: growth capex 0; upkeep 37243000; cash acquisitions 245904000; owner earnings 14044000. Growth capex plus acquisitions / owner earnings = 17.509541441184847.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2017: growth capex 0; upkeep 34564000; cash acquisitions 8497000; owner earnings 41614000. Growth capex plus acquisitions / owner earnings = 0.2041860912193012.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2018: growth capex 0; upkeep 26484000; cash acquisitions 0; owner earnings 51666000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2020: growth capex 0; upkeep 25726000; owner earnings 59999000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2021: growth capex 0; upkeep 24008000; owner earnings 75704000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2022: growth capex 0; upkeep 33121000; cash acquisitions 0; owner earnings 95324000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2023: growth capex 0; upkeep 37390000; cash acquisitions 91302000; owner earnings 87977000. Growth capex plus acquisitions / owner earnings = 1.0377939688782296.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); FY2024: growth capex 0; upkeep 37086000; cash acquisitions 398554000; owner earnings 56301000. Growth capex plus acquisitions / owner earnings = 7.078986163656063.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); Dividend observations: [[2016,5470000],[2017,5516000],[2018,7020000],[2019,10644000],[2020,10534000],[2021,10779000],[2022,10598000],[2023,10639000],[2024,11972000],[2025,14889000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1423221/000142322125000100/nx-20251031.htm (filed 2025-12-12); FY2025: cash repurchases 32360000 USD.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); NX.US SharesStats.PercentInsiders = 1.262 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 7.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-12); Ten-year compound average after fade. Initial solved rate -0.11375155312772228. Price 19.32; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6182540142600429 → FY2025 -4.548494693523933. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $16.30 per share

- 2016-11: $19.45 per share

- 2016-12: $20.30 per share

- 2017-01: $19.75 per share

- 2017-02: $19.55 per share

- 2017-03: $20.25 per share

- 2017-04: $20.40 per share

- 2017-05: $20.60 per share

- 2017-06: $21.15 per share

- 2017-07: $21.50 per share

- 2017-08: $19.60 per share

- 2017-09: $22.95 per share

- 2017-10: $21.95 per share

- 2017-11: $21.90 per share

- 2017-12: $23.40 per share

- 2018-01: $20.70 per share

- 2018-02: $16.75 per share

- 2018-03: $17.40 per share

- 2018-04: $17.15 per share

- 2018-05: $16.80 per share

- 2018-06: $17.95 per share

- 2018-07: $17.70 per share

- 2018-08: $16.40 per share

- 2018-09: $18.20 per share

- 2018-10: $14.82 per share

- 2018-11: $15.79 per share

- 2018-12: $13.59 per share

- 2019-01: $15.65 per share

- 2019-02: $17.19 per share

- 2019-03: $15.89 per share

- 2019-04: $16.72 per share

- 2019-05: $15.51 per share

- 2019-06: $18.89 per share

- 2019-07: $18.62 per share

- 2019-08: $17.22 per share

- 2019-09: $18.08 per share

- 2019-10: $19.29 per share

- 2019-11: $19.46 per share

- 2019-12: $17.08 per share

- 2020-01: $17.72 per share

- 2020-02: $16.80 per share

- 2020-03: $10.08 per share

- 2020-04: $12.47 per share

- 2020-05: $12.40 per share

- 2020-06: $13.88 per share

- 2020-07: $14.05 per share

- 2020-08: $16.81 per share

- 2020-09: $18.44 per share

- 2020-10: $18.20 per share

- 2020-11: $20.60 per share

- 2020-12: $22.17 per share

- 2021-01: $21.99 per share

- 2021-02: $24.33 per share

- 2021-03: $26.23 per share

- 2021-04: $27.29 per share

- 2021-05: $26.63 per share

- 2021-06: $24.84 per share

- 2021-07: $24.84 per share

- 2021-08: $23.56 per share

- 2021-09: $21.41 per share

- 2021-10: $20.72 per share

- 2021-11: $21.37 per share

- 2021-12: $24.78 per share

- 2022-01: $21.79 per share

- 2022-02: $22.86 per share

- 2022-03: $20.99 per share

- 2022-04: $19.22 per share

- 2022-05: $20.34 per share

- 2022-06: $22.75 per share

- 2022-07: $24.61 per share

- 2022-08: $22.30 per share

- 2022-09: $18.16 per share

- 2022-10: $22.16 per share

- 2022-11: $23.77 per share

- 2022-12: $23.68 per share

- 2023-01: $25.89 per share

- 2023-02: $25.95 per share

- 2023-03: $21.53 per share

- 2023-04: $19.10 per share

- 2023-05: $21.01 per share

- 2023-06: $26.85 per share

- 2023-07: $28.14 per share

- 2023-08: $26.98 per share

- 2023-09: $28.17 per share

- 2023-10: $26.85 per share

- 2023-11: $30.79 per share

- 2023-12: $30.57 per share

- 2024-01: $31.22 per share

- 2024-02: $34.58 per share

- 2024-03: $38.43 per share

- 2024-04: $33.22 per share

- 2024-05: $32.96 per share

- 2024-06: $27.65 per share

- 2024-07: $33.40 per share

- 2024-08: $27.63 per share

- 2024-09: $27.75 per share

- 2024-10: $29.06 per share

- 2024-11: $29.76 per share

- 2024-12: $24.24 per share

- 2025-01: $21.00 per share

- 2025-02: $19.29 per share

- 2025-03: $18.59 per share

- 2025-04: $16.44 per share

- 2025-05: $16.73 per share

- 2025-06: $18.90 per share

- 2025-07: $19.48 per share

- 2025-08: $21.27 per share

- 2025-09: $14.22 per share

- 2025-10: $14.21 per share

- 2025-11: $12.96 per share

- 2025-12: $15.38 per share

- 2026-01: $18.72 per share

- 2026-02: $20.53 per share

- 2026-03: $17.97 per share

- 2026-04: $19.94 per share

- 2026-05: $18.61 per share

- 2026-06: $18.62 per share

- 2026-07: $17.84 per share

- 2026-08: $19.22 per share

- 2026-09: $18.87 per share

- 2026-10: $19.32 per share

## Annual estimated value (USD per share)

- FY2016: low $4.74 per share, central $5.36 per share, high $6.19 per share

- FY2017: low $8.99 per share, central $10.23 per share, high $11.88 per share

- FY2018: low $13.65 per share, central $15.49 per share, high $17.94 per share

- FY2019: low $10.19 per share, central $11.54 per share, high $13.34 per share

- FY2020: low $14.67 per share, central $16.55 per share, high $19.05 per share

- FY2021: low $20.87 per share, central $23.67 per share, high $27.40 per share

- FY2022: low $29.25 per share, central $33.16 per share, high $38.36 per share

- FY2023: low $27.51 per share, central $31.15 per share, high $36.00 per share

- FY2024: low $32.41 per share, central $41.39 per share, high $48.06 per share

- FY2025: low $31.57 per share, central $35.80 per share, high $41.44 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1423221/000142322125000100/nx-20251031.htm); period 2025-10-31, filed 2025-12-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations



# NX — Quanex Building Products

Held by 1 investor · USD 2,363,805 total · 2025 Q3 · reported price USD 14.22 (split-adjusted).
Page: https://gigainvestors.com/s/NX

## Holders (2025 Q3)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Steven Romick (https://gigainvestors.com/FPA) | USD 2,363,805 | <0.1% | add +7.25% |

## Total held by quarter

- 2024 Q3: USD 3,954,375 · 1 holder · USD 27.75
- 2024 Q4: USD 1,818,631 · 1 holder · USD 24.23
- 2025 Q1: USD 2,485,074 · 1 holder · USD 18.59
- 2025 Q2: USD 2,929,500 · 1 holder · USD 18.90
- 2025 Q3: USD 2,363,805 · 1 holder · USD 14.22
- 2025 Q4: USD 0 · 0 holders