Recent News
May 28, 2026 — Board declared a quarterly cash dividend of $0.08 per share, payable June 30, 2026, to shareholders of record on June 15, 2026. Subsequent 13F/ownership filings during July–August 2026 show multiple institutional purchases and stake increases including filings on July 28–August 5, 2026.
Technical Analysis
Directional indicators: ADX at 24.01 signals an emerging trend; DI+ at 27.69 trending decreasing constitutes a bearish directional change, while DI- shows a dip-and-reversal behavior that also reads as bearish. Together these directional signals point to weakening upside conviction relative to recent moves and suggest higher probability of range-bound or lower price outcomes near term.
MACD and signal: MACD sits at 0.66 beneath the signal line at 0.76 and the MACD trend shows a peak-and-reversal, a bearish momentum profile. The MACD configuration implies momentum has rolled over and reduces the chance of a sustained near-term breakout above current levels.
MRO (Momentum/Regression Oscillator): MRO at 10.02 with a peak-and-reversal indicates price currently trades above the modeled target and carries pressure for mean reversion. This technical over-target condition increases the likelihood of price contraction toward support levels identified by moving averages and the SuperTrend.
RSI and price momentum: RSI at 54.05 with a peak-and-reversal sits in neutral territory but its reversal from a local peak favors a pullback bias rather than renewed buying strength during the next few weeks.
Price versus averages and bands: Last close $19.72 sits below the 20-day average $20.87 and 12-day EMA $20.46 (both showing peak-and-reversal), while holding above the 50-day $18.32 and 200-day $17.58—positioning price inside a multi-timeframe consolidation band. Price trades near the lower 1x Bollinger boundary ($19.97) and above the 2x lower band ($19.07), placing it close to short-term support (SuperTrend lower = $19.50). Given lower-than-average short-term volume (latest volume 248,331 vs 10-day avg 259,606 and 50/200-day averages), momentum lacks conviction for a sustained rally, supporting consolidation with downside skew relative to WMDST’s over-valued assessment.
Volatility and liquidity context: Elevated beta (42-day 2.87; 52-week 2.06) implies outsized reaction to market moves; also daily volume trends under longer-term averages, which can amplify intraday swings but limit reliable trend extension without fresh volume participation.
Fundamental Analysis
Profitability: Total revenue $409,089,000 with gross margin 24.08% and EBITDA $32,718,000. Operating income (EBIT) $8,469,000 yields an EBIT margin of 2.07%. QoQ change in EBIT margin shows a decline of -78.96% and YoY change equals -244.05%, highlighting acute margin compression against recent periods. Against the industry peer mean EBIT margin of 14.64% and median 15.93%, Quanex’s 2.07% margin sits well below peers, supporting the current over-valued designation.
Income statement nuance: Reported net income produced a loss of $4,071,000 for the period while adjusted operating metrics (EBITDA $32.72M) indicate some operating scale. EPS actual $0.25 versus estimate $0.20 generated a 25% EPS surprise, but earnings remain volatile and not yet reflective of durable margin expansion.
Cash flow and liquidity: Operating cash flow $1,797,000 and free cash flow negative $31,502,000 produce a free cash flow yield of -3.68%. Cash and short-term investments $62,311,000 provide an immediate buffer, but negative free cash flow and free-cash-flow-to-net-income ratio of 7.74x suggest cash generation fails to match reported earnings dynamics. Current ratio 2.31 and quick ratio 1.21 provide working-capital cover; cash conversion cycle ~79.61 days aligns closely with the industry peer mean ~78.84 days, indicating receivables/inventory dynamics roughly peer-comparable.
Leverage and coverage: Total debt $892,619,000 with net debt $644,891,000 yields debt-to-assets 45.12%, above the industry peer mean 30.92% (industry peer range low–high provided). Debt-to-EBITDA at 27.28x and interest coverage around 0.68x demonstrate materially stretched debt service capacity relative to operating earnings, creating financial leverage that increases downside sensitivity to margin pressure.
Growth and operating efficiency: Revenue growth YoY -11.92% indicates contraction year-over-year while sequential measures show stronger underlying sales dynamics. Asset turnover 0.207 (near industry peer mean 0.2259) suggests lower revenue per asset deployed. Return metrics (ROA -0.21%, ROE -0.56%) remain negative, reflecting the net loss and elevated leverage.
Valuation framing: WMDST values the stock as over-valued. Market multiples reflect a premium on forward expectations—PE ~74.65x, forward PE ~30.83x, and P/B ~1.17x—but these metrics pair with high leverage, negative free cash flow, compressed margins, and below-peer operating profitability, which together justify the over-valued determination.
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: 212.401 mean: 119.536 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: 66.0 % mean: 5.758 % 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 % |
|