Apogee (APOG) AI Stock Analysis

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Apogee

(NASDAQ:APOG)

Rating:68Neutral

Price Target:―

Apogee's overall stock score reflects a solid financial performance and attractive valuation, tempered by technical weakness and cautious earnings call guidance. Strengths include efficient cost management and strategic initiatives, but challenges in the metals segment and market conditions create uncertainties.

Apogee (APOG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$858.39M

Dividend Yield2.61%

Average Volume (3M)191.27K

Price to Earnings (P/E)10.2

Beta (1Y)0.90

Revenue Growth-3.95%

EPS Growth-14.56%

CountryUS

Employees4,500

SectorIndustrials

Sector Strength92

IndustryConstruction

Share Statistics

EPS (TTM)0.89

Shares Outstanding21,573,126

10 Day Avg. Volume160,687

30 Day Avg. Volume191,269

Financial Highlights & Ratios

PEG Ratio-0.75

Price to Book (P/B)1.76

Price to Sales (P/S)0.00

P/FCF Ratio9.56

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$55.00

Price Target Upside38.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Apogee Business Overview & Revenue Model

Company DescriptionApogee 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 buildings, hotels, and retail centers; and institutional buildings comprising education facilities, 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, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.

How the Company Makes MoneyApogee Enterprises generates revenue through a diversified portfolio of architectural products and services. The company operates through four primary segments: Architectural Glass, Architectural Framing Systems, Architectural Services, and Large-Scale Optical Technologies. Each segment contributes to its revenue by manufacturing and supplying specialized products like high-performance glass, curtainwall, storefront, and entrance systems, as well as providing installation and finishing services. Apogee's earnings are significantly bolstered by strategic partnerships with contractors and developers, enabling it to secure contracts for large-scale commercial and institutional projects. Additionally, Apogee capitalizes on its technological advancements and customized solutions to maintain a competitive edge and drive sales growth.

Apogee Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q4-2025)

% Change Since: -12.82%|

Next Earnings Date:Jun 20, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong operational performance, record adjusted EPS, and successful integration of UW Solutions. However, these positives were tempered by significant challenges, including operational disruptions in the metals segment, impacts from tariffs, and a declining nonresidential construction market, leading to a cautious outlook for fiscal 2026.

Q4-2025 Updates

Positive Updates

Record Adjusted EPS and Margin Improvements

Apogee Enterprises reported record adjusted EPS and sustainable operating improvements, with adjusted ROIC above 12% for three consecutive years and margins reaching 11%, showing a 470 basis point improvement from fiscal 2022.

Acquisition of UW Solutions

Successfully integrated and progressed the acquisition of UW Solutions, contributing $23 million in revenue with an adjusted EBITDA margin over 22%. The acquisition is expected to support high single-digit organic growth in fiscal 2026.

Strong Cash Flow and Capital Deployment

Generated $125 million in cash from operations and returned $67 million to shareholders through dividends and share buybacks. The company has a strong balance sheet with a leverage ratio of 1.3.

Project Fortify Phase Two

Launch of Project Fortify Phase Two, expected to deliver $13 million to $15 million in annualized pretax cost savings, focusing on the services and metals segments.

Negative Updates

Decline in Metals Segment Performance

Metals segment faced operational disruptions due to the launch of a standardized product line, leading to a 19% decline in net sales and a drop in adjusted operating margin to 2.8%.

Impact of Tariffs

Anticipated $0.45 to $0.55 unfavorable EPS impact from tariffs, affecting primarily the services and metals segments, with measures to mitigate these impacts in place but affecting near-term performance.

Lower Nonresidential Construction Market Outlook

Forecasts point to a slight decline in nonresidential construction, with interest rate-sensitive sectors like office and commercial projected to decline, affecting architectural businesses, especially glass and metals.

Company Guidance

During the Q4 2025 earnings call, Apogee Enterprises provided detailed guidance for fiscal 2026, highlighting several key metrics and strategic initiatives. The company anticipates full-year net sales between $1.37 billion and $1.43 billion, with adjusted diluted EPS ranging from $3.55 to $4.10. Apogee is navigating market uncertainties, including tariffs, which are expected to have a $0.45 to $0.55 negative impact on EPS. The company aims to mitigate these impacts through structural changes and productivity improvements. Despite forecasts predicting a slight decline in nonresidential construction, Apogee continues to leverage its acquisition of UW Solutions, expecting it to contribute approximately $100 million in revenue with an adjusted EBITDA margin of around 20%. The company also plans to execute the second phase of Project Fortify, targeting annualized pre-tax cost savings of $13 million to $15 million. Overall, Apogee remains focused on sustaining the progress achieved from its strategic transformation while balancing near-term performance with long-term growth investments.

Apogee Financial Statement Overview

Summary

Apogee presents a solid financial performance with stable profit margins and efficient cost control. The balance sheet indicates a prudent approach to leverage, while cash flow statements reflect robust operational cash generation. Despite concerns such as liability growth and revenue fluctuations, Apogee's financial health remains resilient.

Income Statement

Positive

Apogee's income statement shows moderate strength with a stable gross profit margin and improving net profit margin over the years. The company has demonstrated a fluctuating but generally positive revenue growth trajectory, although recent years have shown slight declines. The EBIT and EBITDA margins have been consistent, indicating effective cost management and operational efficiency within the industry context.

Balance Sheet

Positive

The balance sheet reflects a sound financial position with a manageable debt-to-equity ratio, indicating controlled leverage. The equity ratio remains healthy, supporting stability. Return on Equity (ROE) is reasonable, reflecting decent profitability for shareholders. However, the increase in total liabilities suggests a need for monitoring potential risk of financial leverage.

Cash Flow

Positive

Cash flow analysis reveals strong operating cash flows relative to net income, indicating effective cash generation from operations. The free cash flow has shown growth, though at a slower pace in recent years, signaling potential reinvestment in business activities. The cash flow from financing activities suggests a strategic approach to funding with some reliance on external financing.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
1.36B	1.42B	1.44B	1.31B	1.23B
	Gross Profit
359.89M	372.63M	335.27M	274.16M	275.69M
	EBIT
118.11M	133.83M	125.79M	22.05M	25.53M
	EBITDA
166.80M	178.83M	179.34M	80.05M	90.75M
	Net Income Common Stockholders
85.05M	99.61M	104.11M	3.49M	15.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.45M	37.22M	19.92M	37.58M	47.28M
	Total Assets
1.18B	884.06M	915.37M	887.86M	1.02B
	Total Debt
351.92M	106.19M	181.64M	163.00M	165.00M
	Net Debt
310.47M	68.98M	161.72M	125.42M	117.72M
	Total Liabilities
687.37M	413.04M	518.96M	501.66M	522.35M
	Stockholders Equity
487.90M	471.02M	396.41M	386.20M	492.75M
Cash Flow		Free Cash Flow
89.57M	160.97M	57.52M	78.63M	115.70M
	Operating Cash Flow
125.16M	204.15M	102.70M	100.47M	141.86M
	Investing Cash Flow
-265.89M	-43.67M	-27.71M	9.28M	-2.15M
	Financing Cash Flow
146.05M	-144.61M	-91.02M	-120.57M	-107.88M

Apogee Technical Analysis

Technical Analysis Sentiment

Negative

Last Price39.79

Price Trends

50DMA

43.34

Negative

100DMA

47.61

Negative

200DMA

60.17

Negative

Market Momentum

MACD

-1.03

Negative

RSI

42.85

Neutral

STOCH

21.85

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 39.79 is below the 20-day moving average (MA) of 40.21, below the 50-day MA of 43.34, and below the 200-day MA of 60.17, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 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 (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROCK	77 Outperform	$1.79B	13.97	13.70%	―	-5.13%	16.93%
JBI	70 Outperform	$1.16B	23.73	9.51%	―	-13.95%	-63.37%
APOG	68 Neutral	$858.39M	10.24	17.74%	2.61%	-3.95%	-14.56%
NX	68 Neutral	$858.17M	29.42	1.56%	1.84%	29.87%	-76.37%
BXC	68 Neutral	$546.71M	15.18	5.96%	―	-4.22%	-16.01%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
JELD	45 Neutral	$286.60M	―	-55.39%	―	-14.12%	-1264.86%

* Industrials Sector Average

Performance Comparison

APOG

Apogee

39.79

-24.02

-37.64%

BXC

Bluelinx Holdings

68.15

-31.29

-31.47%

ROCK

Gibraltar Industries

60.74

-12.09

-16.60%

Quanex

18.17

-13.13

-41.95%

JELD

JELD-WEN

3.67

-10.98

-74.95%

JBI

Janus International Group

8.29

-6.04

-42.15%

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.