Innovations (NYSE:PGTI) - Share price, News & Analysis

PGTI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

PGTI Stock Overview

PGT Innovations, Inc., together with its subsidiaries manufactures and supplies impact-resistant aluminum frame windows and doors in the United States and internationally.

Rewards

Trading at 59.3% below our estimate of its fair value

Earnings are forecast to grow 53.1% per year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (2.8%) are lower than last year (4.5%)

Innovations Competitors

Trex Company

NYSE:TREX

US$6.9b

UFP Industries

NasdaqGS:UFPI

US$4.7b

Simpson Manufacturing

NYSE:SSD

US$4.4b

Cornerstone Building Brands

NYSE:CNR

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Innovations
Historical stock prices
Current Share Price	US$19.24
52 Week High	US$24.69
52 Week Low	US$16.26
Beta	1.34
1 Month Change	9.32%
3 Month Change	-1.33%
1 Year Change	-20.00%
3 Year Change	23.65%
5 Year Change	68.04%
Change since IPO	24.13%

Recent News & Updates

Apr 25

PGT Innovations: Low Net Income Is Hiding Strong Free Cash Flow

PGT Innovations produces windows and doors in the premium segment, with most of the sales coming from impact-resistant products. The reported net income was low due to non-recurring and non-cash elements. The underlying free cash flow was very strong. I expect the underlying FCF to come in at in excess of $1.50 per share this year, even if PGTI doesn't reach the lower end of its EBITDA guidance.

Shareholder Returns

	PGTI	US Building	US Market
7D	3.8%	-1.0%	-0.5%
1Y	-20.0%	-19.3%	-12.3%

Return vs Industry: PGTI matched the US Building industry which returned -19.8% over the past year.

Return vs Market: PGTI underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is PGTI's price volatile compared to industry and market?
PGTI volatility
PGTI Average Weekly Movement	6.2%
Building Industry Average Movement	6.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: PGTI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PGTI's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	5,300	Jeff Jackson	https://pgtinnovations.com

PGT Innovations, Inc., together with its subsidiaries manufactures and supplies impact-resistant aluminum frame windows and doors in the United States and internationally. The company provides heavy-duty aluminum or vinyl frames with laminated glass to provide protection from hurricane-force winds and wind-borne debris; and non-impact resistant vinyl windows with insulating glass and multi-chambered frames for various climate zones. It also offers customizable non-impact-resistant aluminum frame windows and doors; and non-glass vertical and horizontal sliding panels for porch enclosures, including vinyl-glazed aluminum-framed products used for enclosing screened-in porches that provide protection from inclement weather.

Innovations Fundamentals Summary

How do Innovations's earnings and revenue compare to its market cap?
PGTI fundamental statistics
Market Cap	US$1.15b
Earnings (TTM)	US$35.45m
Revenue (TTM)	US$1.25b

32.5x

P/E Ratio

0.9x

P/S Ratio

Is PGTI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PGTI income statement (TTM)
Revenue	US$1.25b
Cost of Revenue	US$804.90m
Gross Profit	US$444.13m
Other Expenses	US$408.68m
Earnings	US$35.45m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.59
Gross Margin	35.56%
Net Profit Margin	2.84%
Debt/Equity Ratio	105.5%

How did PGTI perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PGTI ($19.24) is trading below our estimate of fair value ($47.26)

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

Price To Earnings Ratio

PE vs Industry: PGTI is poor value based on its PE Ratio (32.5x) compared to the US Building industry average (16.3x).

PE vs Market: PGTI is poor value based on its PE Ratio (32.5x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: PGTI is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: PGTI's PB Ratio (2.1x) is in line with the US Building industry average.

Future Growth

How is Innovations forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

53.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGTI's forecast earnings growth (53.1% per year) is above the savings rate (1.9%).

Earnings vs Market: PGTI's earnings (53.1% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: PGTI's revenue (8.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: PGTI's revenue (8.1% 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 PGTI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Innovations performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PGTI has a large one-off loss of $26.6M impacting its April 2 2022 financial results.

Growing Profit Margin: PGTI's current net profit margins (2.8%) are lower than last year (4.5%).

Past Earnings Growth Analysis

Earnings Trend: PGTI's earnings have declined by 1.5% per year over the past 5 years.

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

Earnings vs Industry: PGTI had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Building industry average (27.3%).

Return on Equity

High ROE: PGTI's Return on Equity (7.8%) is considered low.

Financial Health

How is Innovations's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PGTI's short term assets ($471.1M) exceed its short term liabilities ($151.1M).

Long Term Liabilities: PGTI's short term assets ($471.1M) do not cover its long term liabilities ($754.7M).

Debt to Equity History and Analysis

Debt Level: PGTI's net debt to equity ratio (88%) is considered high.

Reducing Debt: PGTI's debt to equity ratio has reduced from 181.9% to 105.5% over the past 5 years.

Debt Coverage: PGTI's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: PGTI's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PGTI has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Jeff Jackson (55 yo)

7.92yrs

Tenure

US$3,531,219

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 ($USD3.53M) is about average for companies of similar size in the US market ($USD3.94M).

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

Leadership Team

Experienced Management: PGTI's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: PGTI's board of directors are seasoned and experienced ( 15.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/04/02
Annual Earnings	2022/01/01