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. PGTI has only an average score on both its financial health and profitability. PGTI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PGTI was profitable.
PGTI had a positive operating cash flow in the past year.
In the past 5 years PGTI has always been profitable.
Each year in the past 5 years PGTI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 6.80%, PGTI perfoms like the industry average, outperforming 51.11% of the companies in the same industry.
The Return On Equity of PGTI (16.27%) is comparable to the rest of the industry.
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 below the industry average of 12.81%.
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
PGTI's Profit Margin of 7.14% is in line compared to the rest of the industry. PGTI outperforms 46.67% of 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.
Looking at the Gross Margin, with a value of 39.27%, PGTI is in the better half of 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.
The number of shares outstanding for PGTI has been reduced compared to 1 year ago.
PGTI has less shares outstanding than it did 5 years ago.
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.
Looking at the Altman-Z score, with a value of 3.34, PGTI is doing worse than 62.22% of the companies in the same industry.
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.
The Debt to FCF ratio of PGTI (4.81) is worse than 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.
PGTI has a worse Debt to Equity ratio (0.93) 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
A Current Ratio of 2.45 indicates that PGTI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.45, PGTI is in line with its industry, outperforming 60.00% of the companies in the same industry.
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 |
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%.
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.
Based on estimates for the next years, PGTI will show a small growth in Revenue. The Revenue will grow by 7.31% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 20.48, which indicates a rather expensive current valuation of PGTI.
Compared to the rest of the industry, the Price/Earnings ratio of PGTI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.53. PGTI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of PGTI.
Based on the Price/Forward Earnings ratio, PGTI is valued a bit cheaper than the industry average as 64.44% of the companies are valued more expensively.
PGTI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.71.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PGTI is on the same level as its industry peers.
| 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
PGTI does not give a dividend.
| 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%