Quanex Building ProductsNX +0.79%65 Gross Margin % is 25.48% as of Apr. 2026, which is 13% above its 10-year median of 22.54. GuruFocus rates NX with a GF Score™ of 65/100 and a GF Value™ of $29.22 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,724 Construction companies, Quanex Building Products ranks better than 62.01% on this metric.
Quanex Building Products (NYSE:NX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Quanex Building Products had a gross margin of 25.48% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Quanex Building Products Gross Margin % Related Terms
Quanex Building Products Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Products & Equipment subindustry, Quanex Building Products's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Quanex Building Products Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Quanex Building Products's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Quanex Building Products's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Quanex Building Products (NX) has a Gross Margin % of 25.48% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Quanex Building Products and its competitors. This is 13% above median its historical median of 22.54. Over the past decade, Quanex Building Products' Gross Margin % has ranged from 21.66 to 27.17. According to the industry distribution chart, Quanex Building Products ranks #655 out of 1724 companies in the Construction industry, placing it in the top 38%.
Is Quanex Building Products' Gross Margin % too high?
Quanex Building Products' current Gross Margin % of 25.48% is 13% above median its 10-year median of 22.54. Over the past 10 years, this metric has ranged from a low of 21.66 to a high of 27.17. The Construction industry median Gross Margin % is 20.71. Quanex Building Products' value of 25.48% is 23.1% above this industry median. Based on the distribution chart, Quanex Building Products ranks #655 out of 1724 companies in the Construction industry, which is above the industry midpoint. Overall, Quanex Building Products has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Quanex Building Products' Gross Margin % compare to APOG and LMB?
According to the Construction industry distribution chart, Quanex Building Products ranks #655 out of 1724 companies for Gross Margin %. This puts Quanex Building Products in the upper half of its industry. The industry median Gross Margin % is 20.71. Quanex Building Products' value of 25.48% is 23.1% above this benchmark. Historically, Quanex Building Products' own Gross Margin % has ranged from 21.66 to 27.17 over the past decade. While the company's 10-year median is 22.54 vs. the industry median of 20.71, Quanex Building Products has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Quanex Building Products's current Gross Margin % of 25.48% is 23.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Quanex Building Products and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quanex Building Products's current Gross Margin % is 25.48%, which is 13% above median its own 10-year median of 22.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quanex Building Products stock overvalued right now?
Based on GuruFocus' analysis, Quanex Building Products (NX) is currently considered Possible Value Trap. The stock's GF Value™ is $29.22, compared to a current price of $17.96 — trading 38.5% below its estimated fair value. The current Gross Margin % is 25.48%, which is 13% above median its 10-year median of 22.54 and 23.1% above the Construction industry median of 20.71. Quanex Building Products' overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Quanex Building Products (NX), the current Gross Margin % is 25.48% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Quanex Building Products (NX) Overvalued in 2026?
Based on GuruFocus' analysis, Quanex Building Products stock appears to be undervalued.
The current stock price of $17.96 is trading 38.5% below its estimated GF Value™ of $29.22.
GuruFocus considers Quanex Building Products to be Possible Value Trap.
Key valuation signals for NX:
Gross Margin %: 25.48% (13% above median its 10-year median of 22.54)
GF Value™: $29.22 vs. price of $17.96 (38.5% below fair value)
Industry Position: 23.1% above the Construction median (#655 of 1724)
No single metric tells the full story. See the NX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Quanex Building Products Corp is a manufacturer of components sold to original equipment manufacturers in the building products industry. It manufactures engineered products like window and door components that include flexible insulating glass spacers, extruded vinyl profiles, window and door screens, solar panel sealants and precision-formed metal and wood products among others. Its four operating segments are North American Fenestration being the key revenue driver, European Fenestration, North American Cabinet Components, and Tyman. Geographically, it derives a majority of revenue from the United States.
65GF Score
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