Recent News
June 4, 2026 — Quanex released second-quarter results for the period ended April 30, 2026, reporting net sales of $462.4 million, adjusted diluted EPS of $0.25, and commentary emphasizing price-versus-cost pressure and working-capital execution. August 20, 2026 — Quanex announced plans to release third-quarter 2026 results on September 3, 2026, and scheduled a conference call for September 4, 2026.
Technical Analysis
Directional strength: ADX at 16.68 indicates no established trend; directional indicators show weakening upward conviction as DI+ (24.06) trends downward while DI- (20.01) trends upward, which reads as a bearish directional shift that reduces near-term upside conviction.
Momentum: MACD stands at 0.34 while the MACD signal sits at 0.55 and the MACD trend declines; MACD below its signal line and falling confirms waning bullish momentum and favors shorter-term negative momentum pressure.
Regression/Momentum oscillator: MRO at 1.51 with a peak-and-reversal signal indicates price above the current WMDST target, implying downside reversion pressure in the near term.
Relative strength: RSI at 53.36 and decreasing signals a neutral-to-softening internal strength profile rather than an oversold or overbought condition.
Price vs moving averages and bands: the last close of $19.68 sits below the 20-day average ($20.57) but above the 50-day ($18.79) and 200-day ($17.81) averages, indicating short-term weakness within a broader multi-month support band; Bollinger boundaries point to limited near-term volatility contraction around the $19–$22 range.
Fundamental Analysis
Top-line and margins: total revenue registers at $462,367,000 with reported revenue growth of 13.02%. Gross margin stands at 25.48% while operating margin measures 4.05% and EBIT margin equals 4.14%. EBIT margin declined YoY by 54.01% and moved QoQ by +0.15%, reflecting margin compression driven by higher input and transportation costs.
Earnings and cash flow: adjusted EBITDA of $43,808,000 and EBIT of $19,158,000 align with constrained operating leverage. Reported EPS of $0.25 exceeded the estimate of $0.20 by $0.05, a 25% surprise. Operating cash flow totaled $10,319,000 and free cash flow reached $7,894,000, producing a free cash flow yield of 0.92% (free cash flow to enterprise reference: 0.00921).
Leverage and liquidity: total debt equals $889,346,000 with net debt of $641,806,000 and Net Debt/LTM Adjusted EBITDA consistent with elevated leverage. Debt-to-assets sits at 44.62% and debt-to-equity at 122.27%. Interest coverage runs at 1.59x, indicating limited earnings coverage for interest expense and emphasizing the priority on debt repayment noted by management.
Efficiency and returns: asset turnover equals 0.233 and cash conversion cycle about 84.29 days (slightly above the industry peer mean of 71.21 days), while return-on-assets registers 0.17% and return-on-equity 0.46%, both near negligible absolute returns and down YoY.
Valuation context: P/B at 1.18 and P/S at 1.85 sit below the provided industry peer mean values; forward P/E about 35.88 versus current P/E of 74.65, and enterprise multiple at 38.41 sits below the peer mean enterprise multiple. WMDST values the stock as under-valued, noting that current multiples reflect low absolute returns and elevated leverage relative to stronger-margin peers.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-04-30 |
| REPORT DATE: | 2026-06-04 |
| NEXT REPORT DATE: | 2026-09-03 |
| CASH FLOW | Begin Period Cash Flow | $ 64.6 M |
| Operating Cash Flow | $ 10.3 M | |
| Capital Expenditures | $ -11.03 M | |
| Change In Working Capital | $ -11.92 M | |
| Dividends Paid | $ -3.64 M | |
| Cash Flow Delta | $ 1.3 M | |
| End Period Cash Flow | $ 66.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 462.4 M | |
| Forward Revenue | $ 833.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 344.6 M | |
| Depreciation | $ 24.6 M | |
| Depreciation and Amortization | $ 24.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 443.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 117.8 M | |
| EBITDA | $ 43.8 M | |
| EBIT | $ 19.2 M | |
| Operating Income | $ 18.7 M | |
| Interest Income | $ 219.0 K | |
| Interest Expense | $ 12.0 M | |
| Net Interest Income | $ -11.82 M | |
| Income Before Tax | $ 7.1 M | |
| Tax Provision | $ 3.8 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 3.4 M | |
| Net Income From Continuing Operations | $ 3.4 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 | $ 808.1 M | |
| Net Tangible Assets | $ -80.79 M | |
| Total Current Assets | $ 604.4 M | |
| Cash and Short-Term Investments | $ 63.7 M | |
| Cash | $ 63.7 M | |
| Net Receivables | $ 211.1 M | |
| Inventory | $ 278.0 M | |
| Long-Term Investments | $ 4.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 127.7 M | |
| Short-Term Debt | $ 26.5 M | |
| Total Current Liabilities | $ 265.1 M | |
| Net Debt | $ 641.8 M | |
| Total Debt | $ 889.3 M | |
| Total Liabilities | $ 1.3 B | |
| EQUITY | ||
| Total Equity | $ 727.4 M | |
| Retained Earnings | $ 156.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.84 | |
| Shares Outstanding | 45.928 M | |
| Revenue Per-Share | $ 10.07 | |
| VALUATION | Market Capitalization | $ 857.1 M |
| Enterprise Value | $ 1.7 B | |
| Enterprise Multiple | 38.412 | |
| Enterprise Multiple QoQ | -25.523 % | |
| Enterprise Multiple YoY | 35.165 % | |
| Enterprise Multiple IPRWA | high: 102.159 median: 68.595 mean: 64.543 NX: 38.412 low: 18.454 |
|
| EV/R | 3.639 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.74 | |
| Asset To Liability | 1.575 | |
| Debt To Capital | 0.55 | |
| Debt To Assets | 0.446 | |
| Debt To Assets QoQ | -1.117 % | |
| Debt To Assets YoY | 11.147 % | |
| Debt To Assets IPRWA | high: 0.793 NX: 0.446 mean: 0.292 median: 0.244 low: 0.005 |
|
| Debt To Equity | 1.223 | |
| Debt To Equity QoQ | 0.044 % | |
| Debt To Equity YoY | 32.169 % | |
| Debt To Equity IPRWA | high: 1.784 NX: 1.223 median: 0.535 mean: 0.506 low: -1.539 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.178 | |
| Price To Book QoQ | 0.403 % | |
| Price To Book YoY | 40.547 % | |
| Price To Book IPRWA | high: 12.015 median: 6.379 mean: 6.137 NX: 1.178 low: -5.298 |
|
| Price To Earnings (P/E) | 74.646 | |
| Price To Earnings QoQ | 0.0 % | |
| Price To Earnings YoY | 145.182 % | |
| Price To Earnings IPRWA | high: 108.742 median: 91.601 mean: 83.976 NX: 74.646 low: -22.989 |
|
| PE/G Ratio | -0.029 | |
| Price To Sales (P/S) | 1.854 | |
| Price To Sales QoQ | -11.53 % | |
| Price To Sales YoY | -0.124 % | |
| Price To Sales IPRWA | high: 16.307 median: 13.003 mean: 11.636 NX: 1.854 low: 0.155 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 35.885 | |
| Forward PE/G | -0.014 | |
| Forward P/S | 1.029 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 9.691 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.233 | |
| Asset Turnover Ratio QoQ | 12.314 % | |
| Asset Turnover Ratio YoY | 16.53 % | |
| Asset Turnover Ratio IPRWA | high: 0.463 median: 0.272 mean: 0.258 NX: 0.233 low: 0.102 |
|
| Receivables Turnover | 2.31 | |
| Receivables Turnover Ratio QoQ | 10.612 % | |
| Receivables Turnover Ratio YoY | -8.209 % | |
| Receivables Turnover Ratio IPRWA | high: 3.141 NX: 2.31 mean: 1.607 median: 1.587 low: 0.974 |
|
| Inventory Turnover | 1.256 | |
| Inventory Turnover Ratio QoQ | 6.114 % | |
| Inventory Turnover Ratio YoY | 9.546 % | |
| Inventory Turnover Ratio IPRWA | high: 4.019 mean: 1.727 median: 1.632 NX: 1.256 low: 0.555 |
|
| Days Sales Outstanding (DSO) | 39.503 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 84.288 | |
| Cash Conversion Cycle Days QoQ | 5.874 % | |
| Cash Conversion Cycle Days YoY | -2.617 % | |
| Cash Conversion Cycle Days IPRWA | high: 179.868 NX: 84.288 mean: 71.207 median: 52.173 low: 35.679 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.363 | |
| CapEx To Revenue | -0.024 | |
| CapEx To Depreciation | -0.447 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ -80.79 M | |
| Net Working Capital | $ 339.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.24 | |
| Current Ratio | 2.28 | |
| Current Ratio QoQ | -1.443 % | |
| Current Ratio YoY | -5.329 % | |
| Current Ratio IPRWA | high: 4.775 NX: 2.28 mean: 1.638 median: 1.073 low: 0.831 |
|
| Quick Ratio | 1.231 | |
| Quick Ratio QoQ | 1.533 % | |
| Quick Ratio YoY | -2.641 % | |
| Quick Ratio IPRWA | high: 3.756 NX: 1.231 mean: 1.111 median: 0.827 low: 0.64 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 20.301 | |
| Cost Of Debt | 0.811 % | |
| Interest Coverage Ratio | 1.591 | |
| Interest Coverage Ratio QoQ | 132.317 % | |
| Interest Coverage Ratio YoY | -45.592 % | |
| Interest Coverage Ratio IPRWA | high: 70.864 mean: 19.214 median: 16.81 NX: 1.591 low: -4.601 |
|
| Operating Cash Flow Ratio | 0.039 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 35.818 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.921 | |
| Dividend Payout Ratio | 1.086 | |
| Dividend Rate | $ 0.08 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.759 % | |
| Revenue Growth | 13.024 % | |
| Revenue Growth QoQ | -179.0 % | |
| Revenue Growth YoY | -0.633 % | |
| Revenue Growth IPRWA | high: 49.254 % mean: 18.149 % median: 15.679 % NX: 13.024 % low: -10.041 % |
|
| Earnings Growth | -2600.0 % | |
| Earnings Growth QoQ | 6111.18 % | |
| Earnings Growth YoY | -1304.881 % | |
| Earnings Growth IPRWA | high: 333.333 % mean: 59.05 % median: 40.187 % low: -78.0 % NX: -2600.0 % |
|
| MARGINS | ||
| Gross Margin | 25.476 % | |
| Gross Margin QoQ | 5.78 % | |
| Gross Margin YoY | -12.261 % | |
| Gross Margin IPRWA | high: 51.192 % mean: 35.907 % median: 35.566 % NX: 25.476 % low: 10.171 % |
|
| EBIT Margin | 4.143 % | |
| EBIT Margin QoQ | 100.145 % | |
| EBIT Margin YoY | -54.013 % | |
| EBIT Margin IPRWA | high: 28.538 % median: 17.832 % mean: 17.3 % NX: 4.143 % low: -5.595 % |
|
| Return On Sales (ROS) | 4.047 % | |
| Return On Sales QoQ | 480.631 % | |
| Return On Sales YoY | -55.078 % | |
| Return On Sales IPRWA | high: 24.405 % median: 19.27 % mean: 17.823 % NX: 4.047 % low: -5.595 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.9 M | |
| Free Cash Flow Yield | 0.921 % | |
| Free Cash Flow Yield QoQ | -125.061 % | |
| Free Cash Flow Yield YoY | -43.043 % | |
| Free Cash Flow Yield IPRWA | high: 4.675 % mean: 1.366 % median: 1.261 % NX: 0.921 % low: -2.292 % |
|
| Free Cash Growth | -125.059 % | |
| Free Cash Growth QoQ | -15.096 % | |
| Free Cash Growth YoY | -19.966 % | |
| Free Cash Growth IPRWA | high: 1002.702 % median: 85.05 % mean: -3.296 % NX: -125.059 % low: -743.655 % |
|
| Free Cash To Net Income | 2.356 | |
| Cash Flow Margin | 2.232 % | |
| Cash Flow To Earnings | 3.08 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.169 % | |
| Return On Assets QoQ | -182.039 % | |
| Return On Assets YoY | -81.347 % | |
| Return On Assets IPRWA | high: 6.089 % median: 3.945 % mean: 3.267 % NX: 0.169 % low: -4.305 % |
|
| Return On Capital Employed (ROCE) | 1.109 % | |
| Return On Equity (ROE) | 0.005 | |
| Return On Equity QoQ | -182.765 % | |
| Return On Equity YoY | -77.49 % | |
| Return On Equity IPRWA | high: 0.158 mean: 0.06 median: 0.056 NX: 0.005 low: -0.074 |
|
| DuPont ROE | 0.46 % | |
| Return On Invested Capital (ROIC) | 0.802 % | |
| Return On Invested Capital QoQ | 127.195 % | |
| Return On Invested Capital YoY | -54.38 % | |
| Return On Invested Capital IPRWA | high: 12.294 % mean: 5.526 % median: 5.296 % NX: 0.802 % low: -2.997 % |
|