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 40 industry peers in the Building Products industry. PGTI has an average financial health and profitability rating. 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.
PGTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.80%, PGTI is in line with its industry, outperforming 51.11% of the companies in the same 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.
PGTI has a Return On Invested Capital (9.64%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PGTI is significantly below the industry average of 13.20%.
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 has a Profit Margin of 7.14%. This is comparable 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.
PGTI has a Operating Margin of 12.39%. This is comparable to the rest of the industry: PGTI outperforms 53.33% of its industry peers.
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.
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
PGTI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PGTI has been reduced compared to a year ago.
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.
PGTI's Altman-Z score of 3.34 is on the low side compared to the rest of the industry. PGTI is outperformed by 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.
The Debt to FCF ratio of PGTI (4.81) is worse than 71.11% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that PGTI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, PGTI is doing worse than 66.67% of the companies in the same industry.
| 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.
With a Current ratio value of 2.45, PGTI perfoms like the industry average, 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'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.
The Earnings Per Share has been growing by 11.49% on average over the past years. This is quite good.
Looking at the last year, PGTI shows a small growth in Revenue. The Revenue has grown by 0.82% in the last year.
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
Based on estimates for the next years, PGTI will show a very strong growth in Earnings Per Share. The EPS will grow by 21.77% on average per year.
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
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
The Price/Earnings ratio is 20.48, which indicates a rather expensive current valuation of PGTI.
PGTI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PGTI to the average of the S&P500 Index (29.63), we can say PGTI is valued slightly cheaper.
PGTI is valuated correctly with a Price/Forward Earnings ratio of 16.87.
Based on the Price/Forward Earnings ratio, PGTI is valued a bit cheaper than 64.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PGTI to the average of the S&P500 Index (22.68), we can say PGTI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PGTI indicates a somewhat cheap valuation: PGTI is cheaper than 64.44% of the companies listed in the same industry.
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.
PGTI's earnings are expected to grow with 21.77% in the coming years. This may justify a more expensive valuation.
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 Change-78.82%
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%