NX Stock Fair Value Calculation – Quanex Building Products Reports Record Earnings and Revenue Beat

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Quanex Building Products ($NYSE:NX), a leading manufacturer and supplier of energy efficient windows and doors, has reported record earnings and revenues that surpass Wall Street expectations. The company reported Non-GAAP EPS of $0.95, an increase of $0.25 from the estimated amount, as well as revenue of $295.49M, an increase of $4.48M from the estimated amount. The company produces a wide variety of metal-based products used in windows and doors, including insulated glass spacers, sash lock reinforcement systems, and other custom components.

In addition, the company offers a full range of services for repair and replacement of windows and doors, as well as installation services. The company’s products are used in new construction and remodeling projects all over the world. These record earnings and revenue exceed expectations demonstrate the strength of Quanex Building Products. With a strong portfolio of products and services, the company is well-positioned to capitalize on growth opportunities in the window and door market. Investors have also responded positively to the news, with share prices rising 2% following the announcement.

Earnings

QUANEX BUILDING PRODUCTS recently reported its financial results for FY2023 Q3 ending July 31 2021. Total revenue reported by the company was 279.88M USD, while net income was 13.68M USD. When compared to the same period in the previous year, there was a 13.6% decrease in total revenue and a 47.2% decrease in net income.

The company’s total revenue over the last three years has grown from 279.88M USD to 299.64M USD. These financial results demonstrate QUANEX BUILDING PRODUCTS’ impressive performance, despite a challenging economic climate.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NX. More…

Key Ratios Snapshot

Some of the financial key ratios for NX are shown below. More…

Share Price

The stock opened at $33.9 and closed at $34.7, representing a 4.4% increase from the previous closing price of 33.2. This marks a significant jump in the company’s stock and is an indication of the strong performance of the company’s latest quarter. The strong performance was driven by a combination of continued strength in their core markets, growth in their newer products and services, and operational efficiencies that resulted in improved margins.

This resulted in the company recording its highest quarterly earnings ever, as well as beating analysts’ revenue expectations. The strong performance has been hailed as a sign that QUANEX BUILDING PRODUCTS is well positioned to continue strong performance going forward. Live Quote…

Analysis – NX Stock Fair Value Calculation

At GoodWhale, we believe in analyzing the fundamentals of a company to assess whether or not their stock is a good investment. We recently took a look at QUANEX BUILDING PRODUCTS, and according to our proprietary Valuation Line our fair value assessment was around $24.7 per share. Currently, QUANEX BUILDING PRODUCTS stock is trading at around $34.7, which is 40.2% higher than our calculated fair value. Therefore, we believe the stock may be overvalued, and an investor should take this into consideration before making a decision to purchase shares of QUANEX BUILDING PRODUCTS. More…

Peers

The company competes with Nihon Flush Co Ltd, PGT Innovations Inc, and Better Life Group in the global market for energy-efficient building products. Quanex Building Products Corp has a strong market position in the United States and Europe, and is expanding its presence in Asia.

– Nihon Flush Co Ltd ($TSE:7820)

Nihon Flush Co Ltd is a Japanese company that manufactures and sells plumbing fixtures and other related products. The company has a market capitalization of 23.73 billion as of 2022 and a return on equity of 10.59%. Nihon Flush Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.

– PGT Innovations Inc ($NYSE:PGTI)

PGT Innovations, Inc. engages in the designing, manufacturing, and distribution of impact-resistant windows and doors. It operates through the following segments: Residential and Commercial. The Residential segment offers aluminum and vinyl windows and doors for new construction, remodeling, and replacement applications. The Commercial segment provides aluminum windows and doors for institutional, office, healthcare, hospitality, government, and other commercial applications. The company was founded in 1980 and is headquartered in North Venice, FL.

– Better Life Group ($TWSE:1805)

The company has a market cap of 1.1 billion as of 2022 and a return on equity of -2.76%. The company is engaged in the business of providing life insurance and annuity products. The company has a strong presence in the US life insurance market and is one of the leading providers of life insurance and annuity products in the country.

Summary

Quanex Building Products is a stock with a good outlook for investors. The company recently released its non-GAAP earnings per share (EPS) of $0.95, beating analysts’ estimates by $0.25 and revenue of $295.49M, beating estimates by $4.48M. On the same day as the announcement, the stock price saw an upward move, reflecting investor confidence in Quanex Building Products and its potential for growth. Investors are optimistic about Quanex Building Products’ prospects due to its strong financial performance and the market potential of its products.