Glass Products, Made of Purchased Glass
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
Discounted Cash Flow Valuation of Apogee Enterprises, Inc.
Growth
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Discount
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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 |
In the chart Earnings are multiplied by this value.
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.
Years | 02-2016 | 03-2017 | 03-2018 | 03-2019 | 02-2020 | 02-2021 | 02-2022 | 02-2023 | 03-2024 | TTM |
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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% |
The average Net Margin over the past 5 years is +3.92%.
The trend of Net Margin over the past 5 years is +0.75%.
The average ROA over the past 5 years is +7.99%.
The trend of ROA over the past 5 years is +1.77%.
The average ROE over the past 5 years is +12.11%.
The trend of ROE over the past 5 years is +2.87%.
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.
Years | 02-2016 | 03-2017 | 03-2018 | 03-2019 | 02-2020 | 02-2021 | 02-2022 | 02-2023 | 03-2024 | TTM |
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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% |
The Debt/FCF trailing twelve month is 0.39.
The trend of Debt/FCF over the past 5 years is -1.04.
Graham’s Stability measure stands at 0.08.
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.
Years | 03-2017 | 03-2019 | 02-2021 | 02-2023 | Trend |
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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% |
The Revenue CAGR over the past 5 years is +0.2%.
The trend of Revenue growth rate over the past 5 years is -44.76%.
The Earnings CAGR over the past 5 years is +16.87%.
The trend of Earnings growth rate over the past 5 years is +137.63%.
The Equity CAGR over the past 5 years is -1.04%.
The trend of Equity growth rate over the past 5 years is -0.86%.
The FCF CAGR over the past 5 years is +35.15%.
The trend of FCF growth rate over the past 5 years is +6.18%.