Apogee Enterprises, Inc. (APOG) stock analysis

P/E above its 5-year median

Apogee Enterprises's P/E of 15.2 is above its own 5-year median of 14.3.

P/E below the industry

Apogee Enterprises's P/E of 15.2 is below the Materials median of 21.9.

EV/EBITDA above its 5-year median

Apogee Enterprises's EV/EBITDA of 8.4 is above its 5-year median of 8.2.

P/B below the industry

Apogee Enterprises's price-to-book of 1.91 is below the Materials median of 2.43.

Trading below fair value

The share price of $47.91 is below our fair value estimate of $59.09.

Margin of safety under 20%

The price is 18.9% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -18.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 51.0% over the last twelve months, against a 5-year average of 28.5% a year.

Growing faster than the industry

Revenue grew 3.0% over the last twelve months; the Materials median is 2.3%.

Guidance raised

Apogee Enterprises raised its fiscal 2027 net sales outlook on Oct 6, 2026.

Gross margin improving

Gross margin was 23.2% over the last twelve months, against 23.1% a year earlier.

Return on equity under 15%

Return on equity was 13.1% over the last twelve months and averaged 15.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Apogee Enterprises's return on equity of 13.1% is above the Materials median of 5.1%.

Earnings grew over 5 years

Net income grew 28.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.7% over the last twelve months, against a 5-year average of 4.9%.

Net margin above the industry

Apogee Enterprises's net margin of 4.7% is above the Materials median of 2.8%.

High debt

Debt is 64.1% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 33.5% five years ago to 64.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 38.3% of total debt.

Interest well covered

Operating income covers interest expense 8.3 times.

Short-term assets cover short-term debts

Current assets are 1.78 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.89; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Apogee Enterprises paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Apogee Enterprises yields 2.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 33.3% of net income.

Covered by free cash flow

Dividends take 23.5% of free cash flow.