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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PGTI was profitable.
PGTI had a positive operating cash flow in the past year.
Each year in the past 5 years PGTI has 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 in line with its industry peers.
PGTI has a Return On Equity (16.27%) which is in line with its industry peers.
With a Return On Invested Capital value of 9.64%, PGTI perfoms like the industry average, outperforming 48.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PGTI is significantly below the industry average of 13.22%.
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.
PGTI has a Operating Margin (12.39%) which is in line with its industry peers.
PGTI's Operating Margin has been stable in the last couple of years.
PGTI has a Gross Margin of 39.27%. This is in the better half of the industry: PGTI outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of PGTI has grown nicely.
| 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
The number of shares outstanding for PGTI has been reduced compared to 5 years ago.
Compared to 1 year ago, PGTI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.34 indicates that PGTI is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.34, PGTI is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 4.81 is on the low side compared to the rest of the industry. PGTI is outperformed by 71.11% of its industry peers.
PGTI has a Debt/Equity ratio of 0.93. This is a neutral value indicating PGTI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, PGTI is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.9
WACC10.69%
2.3 Liquidity
A Current Ratio of 2.45 indicates that PGTI has no problem at all paying its short term obligations.
PGTI's Current ratio of 2.45 is in line compared to the rest of the industry. PGTI outperforms 60.00% of its industry peers.
A Quick Ratio of 1.61 indicates that PGTI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.61, PGTI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
PGTI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.33%.
The Earnings Per Share has been growing by 11.49% on average over the past years. This is quite good.
PGTI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
Measured over the past years, PGTI shows a quite strong growth in Revenue. The Revenue has been growing by 16.58% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
PGTI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.87, the valuation of PGTI can be described as correct.
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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PGTI is valued a bit cheaper than the industry average as 64.44% of the companies are valued more expensively.
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
The 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%