Recent News
On May 28, 2026 Quanex’s board declared a quarterly cash dividend of $0.08 per share, payable June 30, 2026 to holders of record June 15, 2026. This dividend announcement reaffirmed the company’s ongoing cash-return posture amid ongoing operational adjustments.
Technical Analysis
Directional indicators show a bullish tilt: DI+ registered 29.18 with a dip-and-reversal, while DI- stands at 20.56 and is decreasing; ADX at 14.31 indicates no established trend strength, so directional signals reflect momentum shifts rather than a sustained trend.
MACD sits at 0.41 and recently crossed above its signal line (0.23) following a dip-and-reversal, indicating a return of bullish momentum in momentum-based measures.
MRO reads -6.56 (dip-and-reversal). The negative value indicates current price sits below the model target, implying upward pressure and potential mean reversion toward that target.
RSI at 54.14 and rising implies mild bullish momentum without overbought readings, supporting continued short-term upside rather than exhaustion.
Price structure supports the momentum view: the close at $20.87 trades above the 20-day average ($18.56), the 50-day average ($17.65) and the 200-day average ($17.25). Price sits slightly above the 2x upper Bollinger band ($20.45), signaling short-term volatility alongside strength; the super trend lower at $18.00 provides a nearby technical reference point for defensive support.
Fundamental Analysis
Revenue totaled $409.1M with YoY revenue growth of -11.92% but sequential revenue improved QoQ by 14.04%, showing near-term top-line recovery following a softer year-over-year base.
EBIT of $8.469M produces an EBIT margin of 2.07%, materially below the industry peer mean of 14.635% and the industry peer median of 15.925%, highlighting compressed operating profitability. Sequential margin change weakened dramatically: EBIT margin declined ~78.96% QoQ and ~244.05% YoY, reflecting significant short-term pressure on operating leverage.
EBITDA totaled $32.718M; however free cash flow equaled negative $31.502M and operating cash flow remained muted at $1.797M, producing a free cash flow yield of -3.675% and a cash conversion ratio of 1.27x that masks weak cash generation versus earnings. Cash and short-term investments equal $62.31M while net debt stands at $644.891M, producing a debt-to-EBITDA reading of 27.28x and an interest coverage of ~0.68x—both indicators of elevated leverage and constrained interest servicing capacity.
Liquidity metrics appear healthier: current ratio 2.31x and quick ratio 1.21x both sit above the industry peer mean current ratio of 1.79479 and roughly in line with working-capital norms; cash conversion cycle at ~79.6 days sits near the industry peer mean of ~78.8 days.
Profitability and returns remain weak: return on equity at -0.557%, return on assets at -0.206%, and net income of -$4.071M reflect loss-making on the bottom line this period despite the modest EPS beat of $0.25 versus an estimate of $0.20 (a 25% surprise).
Valuation context: trailing PE stands at 74.65x while forward PE sits at 30.83x; WMDST values the stock as over-valued given stretched multiples alongside the company’s current margin and leverage profile.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-01-31 |
| REPORT DATE: | 2026-06-04 |
| NEXT REPORT DATE: | 2026-09-03 |
| CASH FLOW | Begin Period Cash Flow | $ 78.1 M |
| Operating Cash Flow | $ 1.8 M | |
| Capital Expenditures | $ -11.29 M | |
| Change In Working Capital | $ -44.66 M | |
| Dividends Paid | $ -3.64 M | |
| Cash Flow Delta | $ -13.47 M | |
| End Period Cash Flow | $ 64.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 409.1 M | |
| Forward Revenue | $ -609.41 M | |
| COSTS | ||
| Cost Of Revenue | $ 310.6 M | |
| Depreciation | $ 24.2 M | |
| Depreciation and Amortization | $ 24.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 406.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 98.5 M | |
| EBITDA | $ 32.7 M | |
| EBIT | $ 8.5 M | |
| Operating Income | $ 2.9 M | |
| Interest Income | $ 313.0 K | |
| Interest Expense | $ 12.4 M | |
| Net Interest Income | $ -12.05 M | |
| Income Before Tax | $ -3.90 M | |
| Tax Provision | $ 173.0 K | |
| Tax Rate | 40.0 % | |
| Net Income | $ -4.07 M | |
| Net Income From Continuing Operations | $ -4.07 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.20 | |
| EPS Actual | $ 0.25 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 25.0 % | |
| Forward EPS | $ 0.53 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.0 B | |
| Intangible Assets | $ 819.8 M | |
| Net Tangible Assets | $ -89.44 M | |
| Total Current Assets | $ 568.7 M | |
| Cash and Short-Term Investments | $ 62.3 M | |
| Cash | $ 62.3 M | |
| Net Receivables | $ 189.2 M | |
| Inventory | $ 270.6 M | |
| Long-Term Investments | $ 5.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 116.1 M | |
| Short-Term Debt | $ 28.6 M | |
| Total Current Liabilities | $ 245.8 M | |
| Net Debt | $ 644.9 M | |
| Total Debt | $ 892.6 M | |
| Total Liabilities | $ 1.2 B | |
| EQUITY | ||
| Total Equity | $ 730.4 M | |
| Retained Earnings | $ 157.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.90 | |
| Shares Outstanding | 45.932 M | |
| Revenue Per-Share | $ 8.91 | |
| VALUATION | Market Capitalization | $ 857.2 M |
| Enterprise Value | $ 1.7 B | |
| Enterprise Multiple | 51.576 | |
| Enterprise Multiple QoQ | 165.927 % | |
| Enterprise Multiple YoY | -6.989 % | |
| Enterprise Multiple IPRWA | high: 138.618 median: 94.801 mean: 84.509 NX: 51.576 low: -55.76 |
|
| EV/R | 4.125 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.708 | |
| Asset To Liability | 1.585 | |
| Debt To Capital | 0.55 | |
| Debt To Assets | 0.451 | |
| Debt To Assets QoQ | 4.03 % | |
| Debt To Assets YoY | 3779.966 % | |
| Debt To Assets IPRWA | high: 0.78 NX: 0.451 mean: 0.309 median: 0.248 low: 0.006 |
|
| Debt To Equity | 1.222 | |
| Debt To Equity QoQ | 3.957 % | |
| Debt To Equity YoY | 4499.812 % | |
| Debt To Equity IPRWA | high: 1.744 NX: 1.222 median: 0.537 mean: 0.526 low: -1.447 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.174 | |
| Price To Book QoQ | 30.328 % | |
| Price To Book YoY | 5.91 % | |
| Price To Book IPRWA | high: 14.269 median: 6.129 mean: 6.073 NX: 1.174 low: -5.69 |
|
| Price To Earnings (P/E) | 74.646 | |
| Price To Earnings QoQ | 332.741 % | |
| Price To Earnings YoY | -37.817 % | |
| Price To Earnings IPRWA | high: 348.684 mean: 126.078 median: 114.109 NX: 74.646 low: -106.741 |
|
| PE/G Ratio | -1.783 | |
| Price To Sales (P/S) | 2.095 | |
| Price To Sales QoQ | 56.953 % | |
| Price To Sales YoY | -22.189 % | |
| Price To Sales IPRWA | high: 19.824 median: 13.489 mean: 13.165 NX: 2.095 low: 0.198 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 30.83 | |
| Forward PE/G | -0.736 | |
| Forward P/S | -1.407 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.0 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.207 | |
| Asset Turnover Ratio QoQ | -16.605 % | |
| Asset Turnover Ratio YoY | 17.648 % | |
| Asset Turnover Ratio IPRWA | high: 0.474 mean: 0.226 median: 0.225 NX: 0.207 low: 0.047 |
|
| Receivables Turnover | 2.088 | |
| Receivables Turnover Ratio QoQ | -13.802 % | |
| Receivables Turnover Ratio YoY | -6.995 % | |
| Receivables Turnover Ratio IPRWA | high: 3.734 NX: 2.088 mean: 1.581 median: 1.419 low: 0.718 |
|
| Inventory Turnover | 1.184 | |
| Inventory Turnover Ratio QoQ | -11.57 % | |
| Inventory Turnover Ratio YoY | 6.962 % | |
| Inventory Turnover Ratio IPRWA | high: 3.875 mean: 1.561 median: 1.44 NX: 1.184 low: 0.179 |
|
| Days Sales Outstanding (DSO) | 43.696 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 79.612 | |
| Cash Conversion Cycle Days QoQ | 10.638 % | |
| Cash Conversion Cycle Days YoY | -0.446 % | |
| Cash Conversion Cycle Days IPRWA | high: 198.937 NX: 79.612 mean: 78.836 median: 63.399 low: 2.167 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.267 | |
| CapEx To Revenue | -0.028 | |
| CapEx To Depreciation | -0.466 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ -89.44 M | |
| Net Working Capital | $ 322.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.253 | |
| Current Ratio | 2.313 | |
| Current Ratio QoQ | 13.507 % | |
| Current Ratio YoY | -3.361 % | |
| Current Ratio IPRWA | high: 5.721 NX: 2.313 mean: 1.795 median: 1.236 low: 0.779 |
|
| Quick Ratio | 1.212 | |
| Quick Ratio QoQ | 6.795 % | |
| Quick Ratio YoY | 3.877 % | |
| Quick Ratio IPRWA | high: 4.762 NX: 1.212 mean: 1.206 median: 0.854 low: 0.619 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 27.282 | |
| Cost Of Debt | 0.85 % | |
| Interest Coverage Ratio | 0.685 | |
| Interest Coverage Ratio QoQ | -80.86 % | |
| Interest Coverage Ratio YoY | -268.98 % | |
| Interest Coverage Ratio IPRWA | high: 51.538 median: 13.3 mean: 12.308 NX: 0.685 low: -20.842 |
|
| Operating Cash Flow Ratio | 0.007 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 32.042 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | -1.119 | |
| Dividend Payout Ratio | -0.894 | |
| Dividend Rate | $ 0.08 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.505 % | |
| Revenue Growth | -16.486 % | |
| Revenue Growth QoQ | 1404.197 % | |
| Revenue Growth YoY | -11.92 % | |
| Revenue Growth IPRWA | high: 32.602 % mean: 1.347 % median: 0.039 % NX: -16.486 % low: -35.007 % |
|
| Earnings Growth | -41.86 % | |
| Earnings Growth QoQ | -306.309 % | |
| Earnings Growth YoY | -39.203 % | |
| Earnings Growth IPRWA | high: 60.902 % mean: 4.886 % median: -5.556 % NX: -41.86 % low: -75.893 % |
|
| MARGINS | ||
| Gross Margin | 24.084 % | |
| Gross Margin QoQ | -14.24 % | |
| Gross Margin YoY | 4.368 % | |
| Gross Margin IPRWA | high: 56.662 % mean: 34.908 % median: 34.775 % NX: 24.084 % low: 9.553 % |
|
| EBIT Margin | 2.07 % | |
| EBIT Margin QoQ | -78.957 % | |
| EBIT Margin YoY | -244.05 % | |
| EBIT Margin IPRWA | high: 26.893 % median: 15.925 % mean: 14.635 % NX: 2.07 % low: -21.828 % |
|
| Return On Sales (ROS) | 0.697 % | |
| Return On Sales QoQ | -92.046 % | |
| Return On Sales YoY | -148.504 % | |
| Return On Sales IPRWA | high: 24.317 % median: 15.618 % mean: 14.827 % NX: 0.697 % low: -12.238 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -31.50 M | |
| Free Cash Flow Yield | -3.675 % | |
| Free Cash Flow Yield QoQ | -136.079 % | |
| Free Cash Flow Yield YoY | 64.062 % | |
| Free Cash Flow Yield IPRWA | high: 6.62 % median: 0.555 % mean: 0.079 % NX: -3.675 % low: -9.739 % |
|
| Free Cash Growth | -147.295 % | |
| Free Cash Growth QoQ | -433.541 % | |
| Free Cash Growth YoY | -175.41 % | |
| Free Cash Growth IPRWA | high: 336.077 % median: -48.508 % mean: -68.838 % NX: -147.295 % low: -416.974 % |
|
| Free Cash To Net Income | 7.738 | |
| Cash Flow Margin | 0.439 % | |
| Cash Flow To Earnings | -0.441 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | -0.206 % | |
| Return On Assets QoQ | -120.745 % | |
| Return On Assets YoY | -68.598 % | |
| Return On Assets IPRWA | high: 6.228 % median: 2.646 % mean: 2.281 % NX: -0.206 % low: -5.798 % |
|
| Return On Capital Employed (ROCE) | 0.489 % | |
| Return On Equity (ROE) | -0.006 | |
| Return On Equity QoQ | -120.668 % | |
| Return On Equity YoY | -63.619 % | |
| Return On Equity IPRWA | high: 0.205 median: 0.045 mean: 0.043 NX: -0.006 low: -0.17 |
|
| DuPont ROE | -0.559 % | |
| Return On Invested Capital (ROIC) | 0.353 % | |
| Return On Invested Capital QoQ | -86.843 % | |
| Return On Invested Capital YoY | -98.015 % | |
| Return On Invested Capital IPRWA | high: 8.77 % mean: 3.734 % median: 3.596 % NX: 0.353 % low: -6.723 % |
|