$Quanex Building Products (NX.US)$ Quanex Building Products(...

Quanex Building Products(NX)It is an American company that went public at $13 in 2008. The current price is 23.98. The average return over the past 14 years is 4.5%, which is relatively flat.

Over the past five years, the gross profit margin has fluctuated around 22%, while the return on equity has risen from 4.8 to 14.7%. The profit level is on the low side in the sector.

Over the past five years, revenue has not changed much in the first four years, with a substantial increase of 25.9% in 2021, while operating profit has increased continuously for the past three years, reaching 46.6% in 2021. Net profit lost a lot in 2019, reversed losses by 2020 and increased for two consecutive years. The loss in 2019 was due to a 74.6 million impairment in capital assets that year.

Revenue, operating profit and net profit in the first two quarters of 2022 increased by 17.9%, 46.4% and 68.6%, respectively.

The 2021 income statement shows that interest expenses are decreasing year by year, accounting for only 3% of operating profit in 2021, and the burden is very low.

Over the past five years, the asset-liability ratio has dropped from 47.4% to 41.1%, and the ratio of receivables to inventory is very low, but it has increased by 51.3 million in 2021, far exceeding the 18.48 million increase in net profit. Profit growth is relatively weak.

Goodwill and other intangible assets are 217 million, accounting for 52% of the net assets of 420 million. Long-term borrowing is 75.714 million, which is not high.

In the past five years, the net operating volume exceeded the net investment by a large proportion, and the shareholders had more surpluses.

With a price-to-earnings ratio of 14.1 and a price-to-earnings ratio of TTM 11.1, it is possible to observe a few more quarters, given the quality of net profit growth.