Apogee Enterprises, Inc.

APOG

Glass Products, Made of Purchased Glass

Mkt Cap

$1.438B

PE

14.43

Debt

$62M

Cash

$37.22M

EV

$1.463B

FCF

$161M

Market Cap

$1.438B

P/E Ratio

14.43

Debt

$62M

Cash

$37.22M

EV

$1.463B

FCF

$161M

Charts data: {"Earnings":[{"time":"2015-02-27","value":50516000},{"time":"2016-02-26","value":65342000},{"time":"2017-03-03","value":85790000},{"time":"2018-03-02","value":79488000},{"time":"2019-03-01","value":45694000},{"time":"2020-02-28","value":61914000},{"time":"2021-02-26","value":15436000},{"time":"2022-02-25","value":3486000},{"time":"2023-02-24","value":104107000},{"time":"2024-03-01","value":99613000}],"Sales":[{"time":"2015-02-27","value":72730000},{"time":"2016-02-26","value":79517000},{"time":"2017-03-03","value":76200000},{"time":"2018-03-02","value":49100000},{"time":"2019-03-01","value":1402637000},{"time":"2020-02-28","value":1387439000},{"time":"2021-02-26","value":1230774000},{"time":"2022-02-25","value":1313977000},{"time":"2023-02-24","value":1440696000},{"time":"2024-03-01","value":1416942000}],"Net Margins":[{"time":"2015-02-27","value":0.6945689536642375},{"time":"2016-02-26","value":0.8217362325037414},{"time":"2017-03-03","value":1.1258530183727034},{"time":"2018-03-02","value":1.6189002036659879},{"time":"2019-03-01","value":0.03257720992673086},{"time":"2020-02-28","value":0.04462466457984819},{"time":"2021-02-26","value":0.012541701400907072},{"time":"2022-02-25","value":0.0026530144743781665},{"time":"2023-02-24","value":0.0722616013371315},{"time":"2024-03-01","value":0.0703013955405373}],"Assets":[{"time":"2015-02-27","value":612057000},{"time":"2016-02-26","value":657440000},{"time":"2017-03-03","value":784658000},{"time":"2018-03-02","value":1022320000},{"time":"2019-03-01","value":1068168000},{"time":"2020-02-28","value":1128991000},{"time":"2021-02-26","value":1015099000},{"time":"2022-02-25","value":887863000},{"time":"2023-02-24","value":915365000},{"time":"2024-03-01","value":884064000}],"Stockholders Equity":[{"time":"2015-02-27","value":382476000},{"time":"2016-02-26","value":406195000},{"time":"2017-03-03","value":470577000},{"time":"2018-03-02","value":511355000},{"time":"2019-03-01","value":496317000},{"time":"2020-02-28","value":516778000},{"time":"2021-02-26","value":492745000},{"time":"2022-02-25","value":386199000},{"time":"2023-02-24","value":396408000},{"time":"2024-03-01","value":471025000}],"ROE":[{"time":"2015-02-27","value":0.13207626099415387},{"time":"2016-02-26","value":0.16086362461379386},{"time":"2017-03-03","value":0.1823081026059497},{"time":"2018-03-02","value":0.15544582530727186},{"time":"2019-03-01","value":0.09206615932962199},{"time":"2020-02-28","value":0.11980773175328671},{"time":"2021-02-26","value":0.031326548214593755},{"time":"2022-02-25","value":0.009026434558349452},{"time":"2023-02-24","value":0.2626258804060463},{"time":"2024-03-01","value":0.2114813438777135}],"ROA":[{"time":"2015-02-27","value":0.10619762538456386},{"time":"2016-02-26","value":0.14813975419810171},{"time":"2017-03-03","value":0.15650767595563927},{"time":"2018-03-02","value":0.11178887236872995},{"time":"2019-03-01","value":0.06299009144628935},{"time":"2020-02-28","value":0.07781107201031717},{"time":"2021-02-26","value":0.025147300903655703},{"time":"2022-02-25","value":0.02482928109404266},{"time":"2023-02-24","value":0.13741840686502105},{"time":"2024-03-01","value":0.15138383646432838}]}

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 installs custom glass and aluminum windows, curtainwalls, storefront, and entrance systems for the exterior of buildings primarily in the commercial, institutional, and multi-family residential construction sectors. The Architectural Glass segment provides a range of high-performance glass products for use in in windows, curtainwall, storefront, and entrance systems. The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. The LSO segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets. 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, as well as independent distributors to museums, galleries, and other customers. The company was incorporated in 1949 and is based in Minneapolis, Minnesota.

Sector

10-Q
8/26/23
10-Q
5/27/23
10-K
2/25/23
10-Q
11/26/22
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5/28/22
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6/1/19
10-K
3/2/19
10-Q
12/1/18
10-Q
9/1/18
10-Q
6/2/18
10-K
3/3/18

DCF

Discounted Cash Flow Valuation of Apogee Enterprises, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$161M	$167.6M	$174.5M	$181.6M	$189.1M	$196.9M	$205M	$213.4M	$222.2M	$231.3M	$240.8M	$2.408B
DCF		$145.7M	$131.9M	$119.4M	$108.1M	$97.88M	$88.61M	$80.22M	$72.62M	$65.75M	$59.52M	$595.2M
Value	$1.565B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -6.4%

Earnings Stability 4.2%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	02-2016	03-2017	03-2018	03-2019	02-2020	02-2021	02-2022	02-2023	03-2024	TTM
Net Margin	82%	110%	160%	3.3%	4.5%	1.3%	0.27%	7.2%	7%	7%
ROA	15%	16%	11%	6.3%	7.8%	2.5%	2.5%	14%	15%	15%
ROE	16%	18%	16%	9.2%	12%	3.1%	0.9%	26%	21%	21%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.92%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.75%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.99%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.77%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +12.11%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +2.87%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	02-2016	03-2017	03-2018	03-2019	02-2020	02-2021	02-2022	02-2023	03-2024	TTM
Debt FCF	0.25	1.17	2.91	6.89	4.00	2.72	2.09	2.95	0.39	0.39
Debt Equity	0.05	0.14	0.42	0.50	0.43	0.64	0.42	0.43	0.13	0.13
MIN
Graham Stability	-	-	100%	59%	88%	25%	8.5%	100%	100%	8.5%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.39.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.04.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.08.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	03-2017	03-2019	02-2021	02-2023	Trend
Revenue	52%	0.2%	4.8%	-1.6%	-45%
Net Income	2.2%	17%	86%	-4.3%	140%
Stockholders Equity	0.014%	-1%	-1.5%	19%	-0.86%
FCF	16%	35%	12%	180%	6.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +0.2%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -44.76%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +16.87%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +137.63%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -1.04%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.86%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +35.15%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +6.18%.