Summary
- Quanex is a company with positive growth metrics, such as 9% CAGR in revenue, 15% CAGR in EBITDA, and 9% CAGR in cash flow from operations.
- The company's 10-year growth is attributed to organic growth and acquisitions, and its EV/EBITDA ratio has decreased from an average of 8.5 to 4.6.
- By conservatively growing EBITDA at 4% over the next decade, the market cap of Quanex is expected to reach ~$2 billion with a stock price appreciation of $35 per share.
- The company has improved ROIC over the years and has limited debt, with the potential to distribute cash to shareholders.
For further details see:
Unlocking Quanex's Potential