Quanex Building ProductsNX +3.33%61 3-Year ROIIC % is 2.58 as of Oct. 2025, which is 36% below its 10-year median of 4.02. GuruFocus rates NX with a GF Score™ of 61/100 and a GF Value™ of $29.23 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,682 Construction companies, Quanex Building Products ranks worse than 54.46% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Quanex Building Products's 3-Year ROIIC % for the quarter that ended in Oct. 2025 was 2.58%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Quanex Building Products's 3-Year ROIIC % or its related term are showing as below:
NX's 3-Year ROIIC % is ranked worse than 54.46% of 1682
companies
in the Construction industry
Industry Median: 4.63
vs NX: 2.58
Quanex Building Products (NYSE:NX) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Quanex Building Products 3-Year ROIIC % Related Terms
Quanex Building Products 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Quanex Building Products's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Quanex Building Products's 3-Year ROIIC % falls into.
Quanex Building Products 3-Year ROIIC % Calculation
Quanex Building Products's 3-Year ROIIC % for the quarter that ended in Oct. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 118.523 (Oct. 2025) - 89.5589488 (Oct. 2022) )
/
( 1671.019 (Oct. 2025) - 546.702 (Oct. 2022) )
=
28.9640512
/
1124.317
=
2.58%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Quanex Building Products (NX) has a 3-Year ROIIC % of 2.58 as of Oct. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Quanex Building Products and its competitors. This is 36% below median its historical median of 4.02. According to the industry distribution chart, Quanex Building Products ranks #916 out of 1682 companies in the Construction industry, placing it in the top 54.5%.
Is Quanex Building Products' 3-Year ROIIC % too high?
Quanex Building Products' current 3-Year ROIIC % of 2.58 is 36% below median its 10-year median of 4.02. The Construction industry median 3-Year ROIIC % is 4.63. Quanex Building Products' value of 2.58 is 44.3% below this industry median. Based on the distribution chart, Quanex Building Products ranks #916 out of 1682 companies in the Construction industry, which is below the industry midpoint. Overall, Quanex Building Products has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Quanex Building Products' 3-Year ROIIC % compare to SWIM and JBI?
According to the Construction industry distribution chart, Quanex Building Products ranks #916 out of 1682 companies for 3-Year ROIIC %. This places Quanex Building Products in the lower half of its industry. The industry median 3-Year ROIIC % is 4.63. Quanex Building Products' value of 2.58 is 44.3% below this benchmark. While the company's 10-year median is 4.02 vs. the industry median of 4.63, Quanex Building Products has consistently been below 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 3-Year ROIIC % for a Construction company?
The median 3-Year ROIIC % among Construction companies is 4.63, based on 1,682 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Quanex Building Products's current 3-Year ROIIC % of 2.58 is 44.3% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Quanex Building Products and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quanex Building Products's current 3-Year ROIIC % is 2.58, which is 36% below median its own 10-year median of 4.02. 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 $17.40 — trading 40.5% below its estimated fair value. The current 3-Year ROIIC % is 2.58, which is 36% below median its 10-year median of 4.02 and 44.3% below the Construction industry median of 4.63. Quanex Building Products' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Quanex Building Products (NX), the current 3-Year ROIIC % is 2.58 as of Oct. 2025. 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 $17.40 is trading 40.5% below its estimated GF Value™ of $29.23.
GuruFocus considers Quanex Building Products to be Possible Value Trap.
Key valuation signals for NX:
3-Year ROIIC %: 2.58 (36% below median its 10-year median of 4.02)
GF Value™: $29.23 vs. price of $17.40 (40.5% below fair value)
Industry Position: 44.3% below the Construction median (#916 of 1682)
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.
61GF Score
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