PGT INNOVATIONS INC (PGTI) Stock Fundamental Analysis
NYSE:PGTI - New York Stock Exchange, Inc. - US69336V1017 - Common Stock - Currency: USD
Overall PGTI gets a fundamental rating of 5 out of 10. We evaluated PGTI against 41 industry peers in the Building Products industry. Both the profitability and the financial health of PGTI get a neutral evaluation. Nothing too spectacular is happening here. PGTI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PGTI had positive earnings in the past year.
PGTI had a positive operating cash flow in the past year.
In the past 5 years PGTI has always been profitable.
In the past 5 years PGTI always reported a positive cash flow from operatings.
1.2 Ratios
PGTI has a Return On Assets (6.80%) which is comparable to the rest of the industry.
With a Return On Equity value of 16.27%, PGTI perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
The Return On Invested Capital of PGTI (9.64%) is comparable to the rest of the industry.
PGTI had an Average Return On Invested Capital over the past 3 years of 8.09%. This is below the industry average of 12.62%.
The last Return On Invested Capital (9.64%) for PGTI is above the 3 year average (8.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 16.27% | ||
| ROIC | 9.64% |
ROA(3y)4.89%
ROA(5y)4.73%
ROE(3y)12.36%
ROE(5y)11.3%
ROIC(3y)8.09%
ROIC(5y)7.91%
1.3 Margins
PGTI has a Profit Margin (7.14%) which is in line with its industry peers.
PGTI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.39%, PGTI perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
In the last couple of years the Operating Margin of PGTI has remained more or less at the same level.
With a decent Gross Margin value of 39.27%, PGTI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
PGTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.39% | ||
| PM (TTM) | 7.14% | ||
| GM | 39.27% |
OM growth 3Y3.28%
OM growth 5Y-1.31%
PM growth 3Y11.8%
PM growth 5Y-1.54%
GM growth 3Y2.55%
GM growth 5Y2.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PGTI is destroying value.
Compared to 1 year ago, PGTI has less shares outstanding
Compared to 5 years ago, PGTI has less shares outstanding
PGTI has a better debt/assets ratio than last year.
2.2 Solvency
PGTI has an Altman-Z score of 3.34. This indicates that PGTI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PGTI (3.34) is worse than 62.22% of its industry peers.
PGTI has a debt to FCF ratio of 4.81. This is a neutral value as PGTI would need 4.81 years to pay back of all of its debts.
PGTI has a Debt to FCF ratio of 4.81. This is in the lower half of the industry: PGTI underperforms 71.11% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that PGTI is somewhat dependend on debt financing.
The Debt to Equity ratio of PGTI (0.93) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.9
WACC10.69%
2.3 Liquidity
PGTI has a Current Ratio of 2.45. This indicates that PGTI is financially healthy and has no problem in meeting its short term obligations.
PGTI has a Current ratio (2.45) which is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that PGTI should not have too much problems paying its short term obligations.
PGTI's Quick ratio of 1.61 is fine compared to the rest of the industry. PGTI outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.33% over the past year.
PGTI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.49% yearly.
PGTI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
The Revenue has been growing by 16.58% on average over the past years. This is quite good.
EPS 1Y (TTM)7.33%
EPS 3Y27.89%
EPS 5Y11.49%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y19.45%
Revenue growth 5Y16.58%
Sales Q2Q%0.48%
3.2 Future
PGTI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.77% yearly.
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y21.4%
EPS Next 2Y21.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.36%
Revenue Next 2Y7.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.48, the valuation of PGTI can be described as rather expensive.
PGTI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.28, PGTI is valued a bit cheaper.
PGTI is valuated correctly with a Price/Forward Earnings ratio of 16.87.
PGTI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PGTI is cheaper than 64.44% of the companies in the same industry.
PGTI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
PGTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PGTI is cheaper than 64.44% of the companies in the same industry.
PGTI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.88 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
PGTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PGTI's earnings are expected to grow with 21.77% in the coming years.
PEG (NY)0.96
PEG (5Y)1.78
EPS Next 2Y21.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PGTI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.99
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners0.14%
Inst Owner Change0%
Ins Owners23.64%
Ins Owner Change0%
Market Cap2.40B
Analysts76
Price Target42.11 (0.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.44%
Min EPS beat(2)-31.92%
Max EPS beat(2)7.04%
EPS beat(4)2
Avg EPS beat(4)-0.27%
Min EPS beat(4)-31.92%
Max EPS beat(4)25.92%
EPS beat(8)5
Avg EPS beat(8)6.32%
EPS beat(12)8
Avg EPS beat(12)5.33%
EPS beat(16)11
Avg EPS beat(16)13.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.95%
Revenue beat(8)3
Avg Revenue beat(8)0.61%
Revenue beat(12)4
Avg Revenue beat(12)0.6%
Revenue beat(16)8
Avg Revenue beat(16)1.84%
PT rev (1m)0%
PT rev (3m)7.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 16.87 | ||
| P/S | 1.6 | ||
| P/FCF | 18.88 | ||
| P/OCF | 12.21 | ||
| P/B | 3.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12 |
EPS(TTM)2.05
EY4.88%
EPS(NY)2.49
Fwd EY5.93%
FCF(TTM)2.22
FCFY5.3%
OCF(TTM)3.44
OCFY8.19%
SpS26.27
BVpS11.52
TBVpS-3.81
PEG (NY)0.96
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 16.27% | ||
| ROCE | 12.91% | ||
| ROIC | 9.64% | ||
| ROICexc | 9.87% | ||
| ROICexgc | 26.12% | ||
| OM | 12.39% | ||
| PM (TTM) | 7.14% | ||
| GM | 39.27% | ||
| FCFM | 8.47% |
ROA(3y)4.89%
ROA(5y)4.73%
ROE(3y)12.36%
ROE(5y)11.3%
ROIC(3y)8.09%
ROIC(5y)7.91%
ROICexc(3y)8.46%
ROICexc(5y)8.49%
ROICexgc(3y)23.07%
ROICexgc(5y)24.64%
ROCE(3y)10.83%
ROCE(5y)10.58%
ROICexcg growth 3Y0.18%
ROICexcg growth 5Y-6.28%
ROICexc growth 3Y5.07%
ROICexc growth 5Y1.14%
OM growth 3Y3.28%
OM growth 5Y-1.31%
PM growth 3Y11.8%
PM growth 5Y-1.54%
GM growth 3Y2.55%
GM growth 5Y2.41%
F-Score8
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 111.58% | ||
| Cap/Sales | 4.62% | ||
| Interest Coverage | 6.16 | ||
| Cash Conversion | 79.17% | ||
| Profit Quality | 118.66% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 3.34 |
F-Score8
WACC10.69%
ROIC/WACC0.9
Cap/Depr(3y)83.91%
Cap/Depr(5y)79.92%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.51%
Profit Quality(3y)128.11%
Profit Quality(5y)122.19%
High Growth Momentum
Growth
EPS 1Y (TTM)7.33%
EPS 3Y27.89%
EPS 5Y11.49%
EPS Q2Q%-7.41%
EPS Next Y21.4%
EPS Next 2Y21.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.82%
Revenue growth 3Y19.45%
Revenue growth 5Y16.58%
Sales Q2Q%0.48%
Revenue Next Year5.36%
Revenue Next 2Y7.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.05%
EBIT growth 3Y23.37%
EBIT growth 5Y15.05%
EBIT Next Year46.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-15.64%
FCF growth 3Y35.94%
FCF growth 5Y12.56%
OCF growth 1Y0.25%
OCF growth 3Y37.64%
OCF growth 5Y14.44%