Taking everything into account, PGTI scores 4 out of 10 in our fundamental rating. PGTI was compared to 42 industry peers in the Building Products industry. PGTI has only an average score on both its financial health and profitability. PGTI is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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's Return On Assets of 6.80% is in line compared to the rest of the industry. PGTI outperforms 51.11% of its industry peers.
PGTI has a Return On Equity (16.27%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.64%, PGTI is in line with its industry, outperforming 48.89% of the companies in the same industry.
PGTI had an Average Return On Invested Capital over the past 3 years of 8.09%. This is below the industry average of 12.68%.
The 3 year average ROIC (8.09%) for PGTI is below the current ROIC(9.64%), indicating increased profibility in the last year.

		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

The Profit Margin of PGTI (7.14%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PGTI has declined.
The Operating Margin of PGTI (12.39%) is comparable to the rest of the industry.
PGTI's Operating Margin has been stable in the last couple of years.
PGTI's Gross Margin of 39.27% is fine compared to the rest 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PGTI is destroying value.
PGTI has less shares outstanding than it did 1 year 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.
PGTI has a worse Altman-Z score (3.34) than 62.22% of its industry peers.
The Debt to FCF ratio of PGTI is 4.81, which is a neutral value as it means it would take PGTI, 4.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.81, PGTI is doing worse than 71.11% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that PGTI is somewhat dependend on debt financing.
PGTI has a Debt to Equity ratio of 0.93. This is in the lower half of the industry: PGTI underperforms 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

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.
PGTI has a Quick Ratio of 1.61. This is a normal value and indicates that PGTI is financially healthy and should not expect problems in meeting its short term obligations.
PGTI has a Quick ratio of 1.61. This is in the better half of the industry: PGTI outperforms 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.45
Quick Ratio	1.61

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.33% over the past year.
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.
PGTI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.31% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

PGTI is valuated rather expensively with a Price/Earnings ratio of 20.48.
The rest of the industry has a similar Price/Earnings ratio as PGTI.
When comparing the Price/Earnings ratio of PGTI to the average of the S&P500 Index (28.32), we can say PGTI is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.87 indicates a correct valuation of PGTI.
Based on the Price/Forward Earnings ratio, PGTI is valued a bit cheaper than 64.44% of the companies in the same industry.
PGTI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, 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

64.44% of the companies in the same industry are more expensive than PGTI, based on the Enterprise Value to EBITDA ratio.
PGTI's Price/Free Cash Flow is on the same level as 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.