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NX (Quanex Building Products) Altman Z2-Score : 2.55 (As of Dec. 13, 2024)


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What is Quanex Building Products Altman Z2-Score?

Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.

Quanex Building Products has a Altman Z2-Score of 2.55, indicating it is in Grey Zones. This implies that Quanex Building Products is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Quanex Building Products's Altman Z2-Score or its related term are showing as below:

NX' s Altman Z2-Score Range Over the Past 10 Years
Min: 2.51   Med: 3.71   Max: 9.24
Current: 5.96

During the past 13 years, Quanex Building Products's highest Altman Z2-Score was 9.24. The lowest was 2.51. And the median was 3.71.


Quanex Building Products Altman Z2-Score Historical Data

The historical data trend for Quanex Building Products's Altman Z2-Score 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.

* Premium members only.

Quanex Building Products Altman Z2-Score Chart

Quanex Building Products Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Altman Z2-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.39 4.27 5.71 5.56 -

Quanex Building Products Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Altman Z2-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.56 5.96 5.80 5.96 -

Competitive Comparison of Quanex Building Products's Altman Z2-Score

For the Building Products & Equipment subindustry, Quanex Building Products's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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's Altman Z2-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Quanex Building Products's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Quanex Building Products's Altman Z2-Score falls into.



Quanex Building Products Altman Z2-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Quanex Building Products's Altman Z2-Score for today is calculated with this formula:

Z=6.56*X1+3.26*X2+6.72*X3+1.05*X4_2
=6.56*0.1459+3.26*0.1855+6.72*0.027+1.05*0.7721
=2.55

* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.

Trailing Twelve Months (TTM) ended in Oct. 2024:
Total Assets was $2,320 Mil.
Total Current Assets was $611 Mil.
Total Current Liabilities was $273 Mil.
Retained Earnings was $430 Mil.
Pre-Tax Income was -17.538 + 32.038 + 19.691 + 7.891 = $42 Mil.
Interest Expense was -17.697 + -0.878 + -0.95 + -1.068 = $-21 Mil.
Total Liabilities was $1,309 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(611.268 - 272.867)/2319.788
=0.1459

X2=Retained Earnings/Total Assets
=430.405/2319.788
=0.1855

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(42.082 - -20.593)/2319.788
=0.027

X4_2=Net Worth/Total Liabilities
=(Total Stockholders Equity - Preferred Stock)/Total Liabilities
=(1010.746 - 0)/1309.042
=0.7721

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Quanex Building Products has a Altman Z2-Score of 2.55 indicating it is in Grey Zones.


Quanex Building Products  (NYSE:NX) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Read more about Altman Z2-Score, the original research on Z-Score and the additional research on Z2-Score.


Be Aware

Altman Z2-Score does not apply to financial companies.


Quanex Building Products Altman Z2-Score Related Terms

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Quanex Building Products Business Description

Traded in Other Exchanges
N/A
Address
945 Bunker Hill Road, Suite 900, Houston, TX, USA, 77024
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 three operating segments are North American Fenestration being the key revenue driver, European Fenestration, and North American Cabinet Components. Geographically, it derives a majority of revenue from the United States.
Executives
George Laverne Wilson officer: Chief Operating Officer 1800 WEST LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Paul Cornett officer: SVP General Counsel, Secretary 1800 W LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Curtis M Stevens director LOUISIANA-PACIFIC CORPORATION, 414 UNION STREET, SUITE 1910, NASHVILLE TN 37219
Susan F Davis director
William C Griffiths director C/O SPX CORPORATION, 13515 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Karen Ettredge officer: VP, Controller 1800 W LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Bradley E. Hughes director 2420 BRADWAY BOULEVARD, BLOOMFIELD VILLAGE MI 48301
Jason Lippert director C/O LIPPERT COMPONENTS INC, 2375 TAMIAMI TRAIL NORTH STE 11, NAPLES FL 34103
Kimberley Garcia officer: VP, CHRO 1800 W LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Meredith W. Mendes director 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Scott M. Zuehlke officer: VP, IR & Treasurer 1800 W LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Joseph D Rupp director QUANEX BUILDING PRODUCTS CORPORATION, 1800 W LOOP SOUTH, SUITE 1500, HOUSTON TX 77027
Waltz William E Jr. director 16100 SOUTH LATHROP AVENUE, HARVEY IL 60426
Mark A Livingston officer: VP CAO Controller 2105 CITY WEST BLVD., SUITE 500, HOUSTON TX 77042
Kevin P Delaney officer: SVP-Gen. Counsel & Secretary 1900 WEST LOOP SOUTH SUITE 1500, HOUSTON TX 77027