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Apogee (APOG)
NASDAQ:APOG
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Apogee
(NASDAQ:APOG)
69Neutral
Apogee (APOG) vs. S&P 500 (SPY)
Market Cap
$1.06B
Dividend Yield2.1%
Average Volume (3M)241.83K
Price to Earnings (P/E)10.8
Beta (1Y)1.35
Revenue Growth-1.58%
EPS Growth-5.49%
CountryUS
Employees4,400
SectorIndustrials
Sector Strength67
IndustryConstruction
Share Statistics
EPS (TTM)4.47
Shares Outstanding21,953,363
10 Day Avg. Volume273,440
30 Day Avg. Volume241,826
Financial Highlights & Ratios
PEG Ratio4.32
Price to Book (P/B)N/A
Price to Sales (P/S)0.74
Price to Cash Flow (P/CF)8.30
P/FCF Ratio10.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.00Price Target Upside36.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Apogee Business Overview & Revenue Model
Company DescriptionApogee Enterprises, Inc. (APOG) is a leading provider of value-added glass solutions for architectural and picture framing industries. The company operates through multiple segments, including Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical Technologies. Apogee is renowned for its innovative designs and engineering expertise, offering products such as custom window and curtainwall systems, glass fabrication, and high-performance coatings.
How the Company Makes MoneyApogee Enterprises generates revenue primarily through the sale of its architectural glass products and services. The Architectural Framing Systems segment provides revenue by manufacturing and selling aluminum window, curtainwall, storefront, and entrance systems. The Architectural Glass segment earns by producing high-performance glass used in commercial buildings, while the Architectural Services segment contributes through the installation and maintenance of these products. The Large-Scale Optical Technologies segment adds to the revenue by producing glass and acrylic products for picture framing and displays. Apogee's earnings are significantly influenced by its strategic partnerships with contractors, architects, and building owners, as well as its focus on energy-efficient and sustainable building solutions.
Apogee Financial Statement Overview
Summary
Apogee exhibits strong financial health with consistent profitability and effective cash flow management. The balance sheet is stable with moderate leverage and good equity utilization. The company is well-positioned for future growth, although maintaining revenue growth will be crucial.Income Statement
Apogee has demonstrated solid profitability with a TTM gross profit margin of 27.1% and net profit margin of 7.1%. Revenue has shown growth over the years, although the TTM revenue dipped slightly. The EBIT and EBITDA margins are healthy, indicating good operational efficiency.85
Very Positive
Balance Sheet
The company maintains a manageable debt-to-equity ratio of 0.65, reflecting moderate leverage. The return on equity is strong at 18.8%, demonstrating effective use of shareholder funds. The equity ratio is reasonable at 44.2%, suggesting a balanced capital structure.78
Positive
Cash Flow
Apogee's cash flow is robust, with a TTM operating cash flow to net income ratio of 1.73, indicating good cash generation relative to earnings. Free cash flow has grown, and the free cash flow to net income ratio stands at 1.31, showing efficient cash utilization.82
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.38B | 1.42B | 1.44B | 1.31B | 1.23B | 1.39B | Gross Profit |
| 373.79M | 372.63M | 335.27M | 274.16M | 275.69M | 318.96M | EBIT |
| 147.37M | 133.83M | 125.79M | 22.05M | 25.53M | 87.85M | EBITDA |
| 188.59M | 178.83M | 179.34M | 80.05M | 90.75M | 145.19M | Net Income Common Stockholders |
| 98.30M | 99.61M | 104.11M | 3.49M | 15.44M | 61.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 43.85M | 37.22M | 19.92M | 37.58M | 47.28M | 14.95M | Total Assets |
| 1.18B | 884.06M | 915.37M | 887.86M | 1.02B | 1.13B | Total Debt |
| 341.15M | 106.19M | 181.64M | 163.00M | 165.00M | 217.90M | Net Debt |
| 297.29M | 68.98M | 161.72M | 125.42M | 117.72M | 202.95M | Total Liabilities |
| 658.45M | 413.04M | 518.96M | 501.66M | 522.35M | 612.21M | Stockholders Equity |
| 522.07M | 471.02M | 396.41M | 386.20M | 492.75M | 516.78M |
| Cash Flow | Free Cash Flow | ||||
| 129.11M | 160.97M | 57.52M | 78.63M | 115.70M | 55.83M | Operating Cash Flow |
| 170.03M | 204.15M | 102.70M | 100.47M | 141.86M | 107.26M | Investing Cash Flow |
| -274.47M | -43.67M | -27.71M | 9.28M | -2.15M | -47.04M | Financing Cash Flow |
| 124.85M | -144.61M | -91.02M | -120.57M | -107.88M | -74.51M |
Apogee Technical Analysis
Negative
48.21
Price Trends
49.74
Negative
62.93
Negative
64.49
Negative
Market Momentum
-0.74
Negative
44.35
Neutral
71.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APOG, the sentiment is Negative. The current price of 48.21 is above the 20-day moving average (MA) of 47.47, below the 50-day MA of 49.74, and below the 200-day MA of 64.49, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 71.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APOG.
Apogee Risk Analysis
Apogee disclosed 18 risk factors in its most recent earnings report. Apogee reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Apogee Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $12.77B | 20.26 | 12.63% | 1.67% | 13.41% | -44.36% | |
69 Neutral | $1.06B | 10.76 | 20.11% | 2.10% | -1.58% | -5.49% | |
68 Neutral | $6.04B | 17.42 | 24.05% | 0.80% | -2.38% | 141.60% | |
66 Neutral | $8.40B | 20.27 | 18.94% | 0.23% | -0.80% | 17.61% | |
65 Neutral | $6.55B | 29.32 | 28.90% | ― | 5.17% | 10.39% | |
65 Neutral | $25.36B | 18.74 | 19.13% | 2.40% | -4.59% | 11.09% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% |
* Industrials Sector Average
Performance Comparison
APOG
Apogee
47.54
-10.71
-18.39%
AYI
Acuity Brands
267.82
-0.33
-0.12%
OC
Owens Corning
147.15
-17.10
-10.41%
PPG
PPG Industries
108.36
-33.42
-23.57%
TREX
Trex Company
59.32
-40.43
-40.53%
VMI
Valmont
299.20
72.33
31.88%
Apogee Earnings Call Summary
Earnings Call Date: Jan 7, 2025 | % Change Since: -31.89% | Next Earnings Date: Apr 3, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as the acquisition of UW Solutions and strong performance in the Services segment. However, these were counterbalanced by challenges in the glass and framing segments, pressured margins, and a cautious outlook for the nonresidential construction market. The company remains proactive in capital management and M&A activities.Highlights
Acquisition of UW Solutions
Closed the acquisition of UW Solutions, showing early positive integration progress. This acquisition is expected to contribute $100 million in net sales at an adjusted EBITDA margin of approximately 20% in FY '26.
Strong Services Segment Performance
Services delivered its third straight quarter of double-digit net sales growth, with net sales growing 11% and adjusted operating margin improving to 8.6%.
Healthy Backlog
Services backlog ended the quarter at $742 million, providing nearly 2 years of sales in backlog, despite a 4% decrease from last year.
Continued Focus on M&A Pipeline
The company remains focused on cultivating its M&A pipeline to add differentiated products that align with its strategy and enhance its financial profile.
Proactive Capital Management
Executed a $250 million delayed draw term loan to fund the acquisition of UW Solutions while maintaining a leverage ratio of 1.3x. Plans to continue paying down debt and have significant capacity available on the credit facility.
Lowlights
Decline in Glass and Framing Segments
Net sales in the glass segment declined due to soft end-market demand, with an expectation of continued pressure on volume and pricing. Framing net sales also declined by approximately 1%.
Volume and Margin Pressure
Adjusted operating margin declined by 70 basis points due to unfavorable sales leverage from lower volume, less favorable product mix, and higher costs, while adjusted diluted EPS was down 3%.
Market Challenges in Nonresidential Construction
Continued pressure from soft end-market demand in nonresidential construction, particularly impacting glass and framing segments. The market remains challenging, with a contracting trend for 20-plus months.
Lower Expected Full Year Sales and EPS
Updated full-year guidance expects net sales to decline by approximately 5% and adjusted diluted EPS to be at the bottom of the range of $4.90 to $5.20, due to lower-than-expected volume in the fourth quarter.
Company Guidance
During the Q3 2025 earnings call for Apogee Enterprises, the company provided guidance highlighting various metrics and expectations for the fiscal year. Apogee expects net sales to decline by approximately 5%, with the UW Solutions acquisition contributing around $30 million in incremental net sales. The adjusted operating margin for the year is projected to be approximately 11%, despite a decline in sales volume in the framing and glass segments. Adjusted diluted EPS is anticipated to be at the bottom of the $4.90 to $5.20 range, with a full-year adjusted operating margin for framing, services, and LSO within their respective target ranges. The company continues to focus on strong cash flow management, having generated $31 million in cash from operations in the quarter, and aims to pay down debt to strengthen its financial position further. Looking ahead to fiscal 2026, the company plans to leverage the UW Solutions acquisition, targeting approximately $100 million in net sales at a 20% adjusted EBITDA margin, and sees an opportunity for organic growth in the LSO segment.Apogee Corporate Events
M&A TransactionsBusiness Operations and Strategy
Apogee Expands with UW Interco Acquisition
Positive
Nov 4, 2024
Apogee Enterprises, Inc. completed its acquisition of UW Interco, LLC for $242 million, enhancing its Large-Scale Optical segment. The deal is expected to boost fiscal 2026 revenue by $100 million and achieve a 20% adjusted EBITDA margin. While fiscal 2025 may see a dip in EPS due to increased costs, the acquisition promises long-term growth and expanded market opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.