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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Quanex Building Products (NYSE:NX) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Apr. 2026, Quanex Building Products has a Sloan Ratio of -17.39%, indicating there is a warning stage of accrual build up.
Quanex Building Products Sloan Ratio % Related Terms
Quanex Building Products Sloan Ratio % 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 Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Construction Industry
For the Construction industry and Industrials sector, Quanex Building Products's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Quanex Building Products's Sloan Ratio % falls into.
Quanex Building Products Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Quanex Building Products's Sloan Ratio for the fiscal year that ended in Oct. 2025 is calculated as
Quanex Building Products's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was -276.007 (Jul. 2025 ) + 19.571 (Oct. 2025 ) + -4.071 (Jan. 2026 ) + 3.35 (Apr. 2026 ) = $-257 Mil.
Quanex Building Products's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 60.656 (Jul. 2025 ) + 88.254 (Oct. 2025 ) + -20.208 (Jan. 2026 ) + 18.922 (Apr. 2026 ) = $148 Mil.
Quanex Building Products's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -14.467 (Jul. 2025 ) + -21.373 (Oct. 2025 ) + -11.239 (Jan. 2026 ) + -11.054 (Apr. 2026 ) = $-58 Mil.
* 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 (NX) has a Sloan Ratio % of -17.39% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Quanex Building Products and its competitors.
Is Quanex Building Products' Sloan Ratio % too high?
Quanex Building Products' current Sloan Ratio % is -17.39%. Overall, Quanex Building Products has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Quanex Building Products' Sloan Ratio % compare to APOG and LMB?
Quanex Building Products' Sloan Ratio % of -17.39% can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Construction company?
A good Sloan Ratio % depends on the Construction industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Quanex Building Products and its competitors. Quanex Building Products's current Sloan Ratio % is -17.39%. 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 Modestly Undervalued. The stock's GF Value™ is $29.25, compared to a current price of $21.98 — trading 24.9% below its estimated fair value. The current Sloan Ratio % is -17.39%. Quanex Building Products' overall GF Score™ is 61/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Quanex Building Products (NX), the current Sloan Ratio % is -17.39% 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 $21.98 is trading 24.9% below its estimated GF Value™ of $29.25.
GuruFocus considers Quanex Building Products to be Modestly Undervalued.
Key valuation signals for NX:
Sloan Ratio %: -17.39%
GF Value™: $29.25 vs. price of $21.98 (24.9% below fair value)
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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