NasdaqGS:APOG

Stock Analysis Report

Executive Summary

Apogee Enterprises, Inc. designs and develops glass and metal products and services in the United States, Canada, and Brazil.

Rewards

Trading at 12.4% below its fair value

Earnings are forecast to grow 33.29% per year

Pays a high and reliable dividend of 2.14%

Risk Analysis

Has a high level of debt

Profit margins (2.7%) are lower than last year (5.7%)



Snowflake Analysis

Established dividend payer and good value.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: APOG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

APOG

-1.8%

US Building

-2.7%

US Market


1 Year Return

-2.0%

APOG

30.9%

US Building

21.2%

US Market

Return vs Industry: APOG underperformed the US Building industry which returned 35.5% over the past year.

Return vs Market: APOG underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

APOGIndustryMarket
7 Day-3.7%-1.8%-2.7%
30 Day1.8%1.4%0.09%
90 Day-13.2%3.1%6.9%
1 Year-0.2%-2.0%32.9%30.9%23.8%21.2%
3 Year-39.2%-41.6%25.2%19.4%48.1%38.6%
5 Year-20.9%-25.8%52.6%32.9%72.5%53.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APOG ($32.7) is trading below our estimate of fair value ($37.32)

Significantly Below Fair Value: APOG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: APOG is good value based on its PE Ratio (23.8x) compared to the Building industry average (23.8x).

PE vs Market: APOG is poor value based on its PE Ratio (23x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: APOG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: APOG is good value based on its PB Ratio (1.7x) compared to the US Building industry average (2.4x).


Next Steps

Future Growth

How is Apogee Enterprises forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APOG's forecast earnings growth (33.3% per year) is above the savings rate (1.7%).

Earnings vs Market: APOG's earnings (33.3% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APOG's revenue (3.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: APOG's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APOG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Apogee Enterprises performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APOG has high quality earnings.

Growing Profit Margin: APOG's current net profit margins (2.7%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: APOG's earnings have declined by -0.3% per year over the past 5 years.

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

Earnings vs Industry: APOG had negative earnings growth (-52.7%) over the past year, making it difficult to compare to the Building industry average (-5.5%).


Return on Equity

High ROE: APOG's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Apogee Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: APOG's short term assets ($396.9M) do not cover its short term liabilities ($399.5M).

Long Term Liabilities: APOG's short term assets ($393.6M) exceed its long term liabilities ($251.3M).


Debt to Equity History and Analysis

Debt Level: APOG's debt to equity ratio (48.8%) is considered high.

Reducing Debt: APOG's debt to equity ratio has increased from 6% to 38.3% over the past 5 years.

Debt Coverage: APOG's debt is well covered by operating cash flow (40.3%).

Interest Coverage: APOG's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: APOG's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

2.27%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Apogee Enterprises before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: APOG's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: APOG's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: APOG's dividends per share have been stable in the past 10 years.

Growing Dividend: APOG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.2%), APOG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APOG's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Joe Puishys (61yo)

8.4yrs

Tenure

US$2,250,536

Compensation

Mr. Joseph F. Puishys, also known as Joe, has been Chief Executive Officer and President of Apogee Enterprises, Inc. since August 22, 2011. Mr. Puishys has over 32 years experience in manufacturing busines ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD2.25M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: APOG's management team is seasoned and experienced (11.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

Experienced Board: APOG's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: APOG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$62,20026 Dec 19
Brent Jewell
EntityIndividual
Role
Senior Key Executive
President of Architectural Framing Systems segment
Shares2,000
Max PriceUS$31.10
SellUS$77,69518 Apr 19
Sara Hays
EntityIndividual
Shares1,985
Max PriceUS$39.14

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jim Porter (58yo)

    Executive VP & CFO

    • Tenure: 14.3yrs
    • Compensation: US$787.22k
  • Pat Beithon (65yo)

    Corporate Governance Compliance Officer

    • Tenure: 20.3yrs
    • Compensation: US$596.63k
  • Gary Johnson (57yo)

    Senior VP & Treasurer

    • Tenure: 19yrs
    • Compensation: US$421.00k
  • Joe Puishys (61yo)

    CEO, President & Director

    • Tenure: 8.4yrs
    • Compensation: US$2.25m
  • John Klein (63yo)

    President of EFCO Corporation

    • Tenure: 1.9yrs
    • Compensation: US$545.12k
  • Jeff Huebschen

    Vice President of Investor Relations & Communications

    • Brent Jewell (44yo)

      President of Architectural Framing Systems segment

      • Tenure: 2yrs
      • Compensation: US$723.05k

    Board Members

    • Mark Pompa (54yo)

      Independent Director

      • Tenure: 1.3yrs
      • Compensation: US$102.98k
    • Bernie Aldrich (69yo)

      Independent Director

      • Tenure: 21yrs
      • Compensation: US$265.96k
    • Don Nolan (58yo)

      Independent Chairman of Board

      • Compensation: US$188.29k
    • Herbert Parker (61yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$180.71k
    • Christy Alvord (51yo)

      Independent Director

      • Patti Wagner (55yo)

        Independent Director

        • Tenure: 4yrs
        • Compensation: US$182.49k
      • Joe Puishys (61yo)

        CEO, President & Director

        • Tenure: 8.4yrs
        • Compensation: US$2.25m
      • Lloyd Johnson (65yo)

        Independent Director

        • Tenure: 2.6yrs
        • Compensation: US$183.80k
      • Frank Heard (60yo)

        Independent Director

        • Elizabeth Lilly (55yo)

          Independent Director

          Company Information

          Apogee Enterprises, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Apogee Enterprises, Inc.
          • Ticker: APOG
          • Exchange: NasdaqGS
          • Founded: 1949
          • Industry: Building Products
          • Sector: Capital Goods
          • Market Cap: US$876.882m
          • Shares outstanding: 26.51m
          • Website: https://www.apog.com

          Number of Employees


          Location

          • Apogee Enterprises, Inc.
          • 4400 West 78th Street
          • Suite 520
          • Minneapolis
          • Minnesota
          • 55435
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          APOGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
          ANPDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

          Biography

          Apogee Enterprises, Inc. designs and develops glass and metal products and services in the United States, Canada, and Brazil. The company operates in four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical Technologies (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, and finishes the aluminum frames used in customized aluminum and glass window; curtain wall; storefront; and entrance systems, such as the outside skin and entrances of commercial, institutional, and multi-family residential buildings. The Architectural Glass segment fabricates coated and high-performance glass used in customized window and wall systems, including the outside skin of commercial, institutional, and multi-family residential buildings. The Architectural Services segment offers full-service installation of the walls of glass, windows, and other curtain wall products making up the outside skin of commercial and institutional buildings. The LSO segment manufactures value-added glass and acrylic products for framing and display applications. The company’s products and services are primarily used in commercial buildings, such as office towers, hotels, and retail centers; and institutional buildings comprising education facilities and dormitories, health care facilities, and government buildings, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, and distributors to glazing subcontractors and general contractors; and value-added glass and acrylics through retail chains, picture-framing shops, and independent distributors to museums, shops, and galleries. The company was founded in 1949 and is headquartered in Minneapolis, Minnesota. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/27 23:31
          End of Day Share Price2020/01/27 00:00
          Earnings2019/11/30
          Annual Earnings2019/03/02


          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.