NX - Quanex Building Products Corporation
Price:
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CONSENSUS:
Hold
DETAILS
AlphaVal
Deterministic, archetype-aware fair value
Cyclical & Capital-Intensive
80% confidence
Primary model: Normalized Earnings × Cycle Multiple
Adjust Assumptions
18.0x
1.7$
Key Value Driver
Through-cycle normalized EPS ($1.70)
Implied Market Multiple
10.4x
Plain-Language Summary
Using 7-year normalized EPS of $1.70 at a 18x cycle multiple, the base-case value is $25.50 per share.
Warnings
This company has a built-in lending arm whose debt is mixed in with the main business. We capped the debt adjustment to avoid overstating what the core business owes.
Key Risks
- Standard 10-year DCF produces unreliable terminal values for cyclicals
- 'Cheap' P/E at cycle peak is the most common value trap — normalize first
- Captive finance subsidiaries have different risk profiles from manufacturing