Apogee (APOG) AI Stock Analysis

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Apogee

(NASDAQ:APOG)

69Neutral

Apogee's strong financial health and solid valuation are key strengths, but are offset by technical indicators pointing to a bearish trend and earnings call guidance suggesting sales and EPS declines. The strategic acquisition is positive for long-term growth, yet near-term challenges in key segments remain.

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

Market Cap

$1.03B

Dividend Yield2.16%

Average Volume (3M)244.47K

Price to Earnings (P/E)10.5

Beta (1Y)1.12

Revenue Growth-1.58%

EPS Growth-5.49%

CountryUS

Employees4,400

SectorIndustrials

Sector Strength61

IndustryConstruction

Share Statistics

EPS (TTM)4.47

Shares Outstanding21,953,363

10 Day Avg. Volume218,666

30 Day Avg. Volume244,474

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

$70.00

Price Target Upside51.38% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

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 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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
46.44M	37.22M	19.92M	37.58M	47.28M	14.95M
	Total Assets
507.64K	884.06M	915.37M	887.86M	1.02B	1.13B
	Total Debt
21.57K	106.19M	181.64M	163.00M	165.00M	217.90M
	Net Debt
-14.23M	68.98M	161.72M	125.42M	117.72M	202.95M
	Total Liabilities
174.72K	413.04M	518.96M	501.66M	522.35M	612.21M
	Stockholders Equity
332.92K	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

Technical Analysis Sentiment

Negative

Last Price46.24

Price Trends

50DMA

48.00

Negative

100DMA

59.37

Negative

200DMA

63.74

Negative

Market Momentum

MACD

-0.79

Negative

RSI

41.31

Neutral

STOCH

32.71

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 46.24 is below the 20-day moving average (MA) of 46.73, below the 50-day MA of 48.00, and below the 200-day MA of 63.74, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 32.71 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
ROCK	73 Outperform	$1.67B	11.98	13.99%	―	-5.01%	24.50%
APOG	69 Neutral	$1.03B	10.47	20.11%	2.16%	-1.58%	-5.49%
BXC	67 Neutral	$616.15M	12.07	8.29%	―	-5.86%	16.49%
JBI	66 Neutral	$949.90M	14.07	13.56%	―	-9.61%	-47.79%
NX	65 Neutral	$863.84M	29.61	1.56%	1.75%	29.87%	-76.37%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
JELD	44 Neutral	$461.83M	―	-25.51%	―	-15.09%	-358.01%

* Industrials Sector Average

Performance Comparison

APOG

Apogee

46.24

-10.67

-18.75%

BXC

Bluelinx Holdings

71.01

-49.23

-40.94%

ROCK

Gibraltar Industries

53.49

-21.75

-28.91%

Quanex

17.43

-18.62

-51.65%

JELD

JELD-WEN

5.20

-14.78

-73.97%

JBI

Janus International Group

6.33

-7.94

-55.64%

Apogee Earnings Call Summary

Earnings Call Date: Jan 7, 2025 | % Change Since: -34.67% | Next Earnings Date: Apr 24, 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.