Quanex Building ProductsNX -5.01%65 Return-on-Tangible-Equity is Negative Tangible Equity% as of Apr. 2026. GuruFocus rates NX with a GF Score™ of 65/100 and a GF Value™ of $29.23 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,704 Construction companies, Quanex Building Products ranks worse than 58685.39% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Quanex Building Products's annualized net income for the quarter that ended in Apr. 2026 was $13 Mil. Quanex Building Products's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $-85 Mil. Therefore, Quanex Building Products's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Quanex Building Products's Return-on-Tangible-Equity or its related term are showing as below:
During the past 13 years, Quanex Building Products's highest Return-on-Tangible-Equity was 90.06%. The lowest was -71.34%. And the median was 39.25%.
NX's Return-on-Tangible-Equity is not ranked *
in the Construction industry.
Industry Median: 8.22 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Quanex Building Products (NYSE:NX) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Quanex Building Products Return-on-Tangible-Equity Related Terms
Quanex Building Products Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Quanex Building Products's Return-on-Tangible-Equity can be seen below:
* 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.
Quanex Building Products Return-on-Tangible-Equity Chart
NX vs SWIM, JBI, LMB: Return-on-Tangible-Equity Comparison
For the Building Products & Equipment subindustry, Quanex Building Products's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Quanex Building Products's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Quanex Building Products's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Quanex Building Products (NX) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Quanex Building Products and its competitors. According to the industry distribution chart, Quanex Building Products ranks #999999 out of 1704 companies in the Construction industry.
Is Quanex Building Products' Return-on-Tangible-Equity too high?
Quanex Building Products' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Quanex Building Products ranks #999999 out of 1704 companies in the Construction industry, which is in the bottom quartile relative to peers. 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' Return-on-Tangible-Equity compare to SWIM and JBI?
According to the Construction industry distribution chart, Quanex Building Products ranks #999999 out of 1704 companies for Return-on-Tangible-Equity. This places Quanex Building Products in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.22. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.22, based on 1,704 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Quanex Building Products and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quanex Building Products's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 $29.23, compared to a current price of $17.08 — trading 41.6% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Quanex Building Products (NX), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 $17.08 is trading 41.6% below its estimated GF Value™ of $29.23.
GuruFocus considers Quanex Building Products to be Possible Value Trap.
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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