NXQuanex Building Products Corporation
Is the business good?
The checks split: earnings fully cash-backed (2.1×), but margins compressing.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NX?
Quanex Building Products Corporation earns 6.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.5 points below what the capital costs: growth destroys value
- Operating margin
- 6.0%
Operating margin · Building Products & Equipment median 7.8% · 12 months to Q3 2026
- Cash conversion
- 2.09×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.09%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.5% |
| FY2021 | 7.6% |
| FY2022 | 9.1% |
| FY2023 | 9.8% |
| FY2024 | 4.3% |
| FY2025 | −11% |
Details›
- Gross margin12 months to Q3 2026
- 27%
- Operating margin12 months to Q3 2026
- 6.0%
- Net margin12 months to Q3 2026
- 2.4%
- Free cash flow margin
- 4.9%
- Revenue, trailing twelve months
- $1.86B
- Free cash flow, trailing twelve months
- $91M
- Net income, trailing twelve months
- $45M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from NX and who it buys from, as the companies report it.
- One customer10%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; NX’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Building Products & Equipment
Ranks #17 of 19 by RyuScore