DB:P9I

Stock Analysis Report

Executive Summary

PGT Innovations, Inc. manufactures and supplies impact-resistant residential windows and doors in the Southeastern United States, Western United States, the Gulf Coast, Coastal mid-Atlantic, the Caribbean, Central America, and Canada.

Rewards

Trading at 31.6% below its fair value

Earnings are forecast to grow 14.76% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Profit margins (6.7%) are lower than last year (9.9%)

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Innovations's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: P9I's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

P9I

-1.5%

DE Building

0.7%

DE Market


1 Year Return

-18.9%

P9I

8.4%

DE Building

15.1%

DE Market

Return vs Industry: P9I underperformed the German Building industry which returned 8.4% over the past year.

Return vs Market: P9I underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

P9IIndustryMarket
7 Day-3.1%-1.5%0.7%
30 Day-9.4%0.4%-0.7%
90 Day-11.8%9.4%5.9%
1 Year-18.9%-18.9%12.5%8.4%18.7%15.1%
3 Yearn/a23.2%10.3%19.2%8.6%
5 Yearn/a81.8%58.9%39.0%20.1%

Price Volatility Vs. Market

How volatile is Innovations's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Innovations undervalued compared to its fair value and its price relative to the market?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: P9I (€12.5) is trading below our estimate of fair value (€18.26)

Significantly Below Fair Value: P9I is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: P9I is good value based on its PE Ratio (16x) compared to the Building industry average (18.8x).

PE vs Market: P9I is good value based on its PE Ratio (16x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: P9I is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: P9I is overvalued based on its PB Ratio (1.9x) compared to the DE Building industry average (1.3x).


Next Steps

Future Growth

How is Innovations forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: P9I's forecast earnings growth (14.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: P9I's earnings (14.8% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: P9I's earnings are forecast to grow, but not significantly.

Revenue vs Market: P9I's revenue (3.8% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: P9I's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: P9I's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Innovations performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: P9I has high quality earnings.

Growing Profit Margin: P9I's current net profit margins (6.7%) are lower than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: P9I's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: P9I's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: P9I had negative earnings growth (-20.1%) over the past year, making it difficult to compare to the Building industry average (-1.1%).


Return on Equity

High ROE: P9I's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Innovations's financial position?


Financial Position Analysis

Short Term Liabilities: P9I's short term assets ($234.1M) exceed its short term liabilities ($65.8M).

Long Term Liabilities: P9I's short term assets ($234.1M) do not cover its long term liabilities ($430.4M).


Debt to Equity History and Analysis

Debt Level: P9I's debt to equity ratio (86.4%) is considered high.

Reducing Debt: P9I's debt to equity ratio has reduced from 272.1% to 86.4% over the past 5 years.

Debt Coverage: P9I's debt is well covered by operating cash flow (24.5%).

Interest Coverage: P9I's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: P9I has a high level of physical assets or inventory.

Debt Coverage by Assets: P9I's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Innovations's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate P9I's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate P9I's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if P9I's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if P9I's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of P9I's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Innovations's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Jeff Jackson (53yo)

1.9yrs

Tenure

US$2,325,187

Compensation

Mr. Jeffrey T. Jackson, also known as Jeff, CPA, has been the Chief Executive Officer and President of PGT Innovations, Inc. since January 1, 2018 and May 2014 respectively. He served as Chief Operating Of ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD2.33M) is above average for companies of similar size in the German market ($USD1.28M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.0yrs

Average Tenure

53yo

Average Age

Experienced Management: P9I's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

12.5yrs

Average Tenure

64yo

Average Age

Experienced Board: P9I's board of directors are seasoned and experienced ( 12.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$25,24821 Aug 19
Brent Boydston
EntityIndividual
Role
Head of Sales
Senior Vice President of Corporate Sales & Marketing
Shares2,000
Max PriceUS$12.62
BuyUS$44,65721 Aug 19
Robert Keller
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Southeast Business Unit
Shares3,500
Max PriceUS$12.76
BuyUS$49,69407 Mar 19
Jeffrey Jackson
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$12.42
BuyUS$51,46305 Mar 19
Richard Feintuch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$13.01
BuyUS$38,09905 Mar 19
Jeffrey Jackson
EntityIndividual
Role
Chief Executive Officer
President
Shares3,000
Max PriceUS$12.70
SellUS$84,55618 Dec 18
Brett Milgrim
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,760
Max PriceUS$14.68

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.6%.


Management Team

  • Rod Hershberger (62yo)

    Co-Founder & Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$138.50k
  • David McCutcheon (53yo)

    Senior VP of Business Integration

    • Tenure: 0yrs
    • Compensation: US$553.72k
  • Debbie LaPinska (57yo)

    Senior Vice President of Human Resources

    • Tenure: 5.9yrs
    • Compensation: US$349.93k
  • Jeff Jackson (53yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$2.33m
  • Bob Keller (47yo)

    Senior VP & President of Southeast Business Unit

    • Tenure: 0.9yrs
    • Compensation: US$687.80k
  • Brad West (53yo)

    Senior VP of Corporate Development & Treasurer

    • Tenure: 0.7yrs
    • Compensation: US$709.01k
  • Brent Boydston (50yo)

    Senior Vice President of Corporate Sales & Marketing

    • Tenure: 0.9yrs
    • Compensation: US$590.42k
  • John Engelstad

    Chief Information Officer

    • Tenure: 1.2yrs
  • Sherri Baker

    Senior VP & CFO

    • Tenure: 0.7yrs
  • Stephanie Cz

    Communications Manager

    • Tenure: 0yrs

Board Members

  • Floyd Sherman (79yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$133.50k
  • Frances R. Hawes (64yo)

    Independent Director

    • Tenure: 0.9yrs
  • Brett Milgrim (50yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$133.50k
  • Sheree Bargabos (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$133.50k
  • Alexander Castaldi (69yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$136.25k
  • Rod Hershberger (62yo)

    Co-Founder & Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$138.50k
  • Jeff Jackson (53yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$2.33m
  • Richard Feintuch (66yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$180.14k
  • Bill Morgan (72yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$143.50k

Company Information

PGT Innovations, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PGT Innovations, Inc.
  • Ticker: P9I
  • Exchange: DB
  • Founded: 1980
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$815.914m
  • Listing Market Cap: US$736.934m
  • Shares outstanding: 58.40m
  • Website: https://pgtinnovations.com

Number of Employees


Location

  • PGT Innovations, Inc.
  • 1070 Technology Drive
  • North Venice
  • Florida
  • 34275
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGTINYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2006
P9IDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2006

Biography

PGT Innovations, Inc. manufactures and supplies impact-resistant residential windows and doors in the Southeastern United States, Western United States, the Gulf Coast, Coastal mid-Atlantic, the Caribbean, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 21:21
End of Day Share Price2019/12/09 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.