Apogee Enterprises (APOG:NAS) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Apogee Enterprises $41.71 (USD) Close Price as of 03/05/2018

Based on the analysis conducted in this report, Apogee Enterprises, (APOG:NAS) is found to be  Undervalued.

Company Apogee Enterprises
Symbol:Exchange APOG:NAS
Industry Basic Materials:Building Materials
Close Price/Date $41.71 (USD) 03/05/2018
Weighted Average Valuation $51.31 (USD)
Summary APOG:NAS is found to be  Undervalued by 23.0% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $47.00 (USD)
(in order of importance) Comparables: $54.89 (USD)
Adjusted Book Value: $57.08 (USD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Undervalued on a Cash Flow Valuation basis
Comparable Company Basis: Undervalued on a Comparable Valuation basis
Asset Basis: Undervalued on an Asset Valuation basis

Valuation Details

Apogee Enterprises Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for APOG:NAS

Using a discounted cash flow model we generated an intrinsic value of $64.88 (USD) for APOG:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

APOG:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $64.88 1% 5% 1% 5%
WACC (or Ke) 10.10 $75.76 $56.70
Terminal Growth Rate 3.00 $57.71 $74.42
Tax Rate 0.30 $69.60 $60.17
Cash Flow 209,914,000 $61.59 $68.17
Capital Expenditures 431,400 $64.89 $64.88
Long Term Debt 20,400,000 $64.92 $64.85

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $54.89 (USD) for APOG:NAS. We also generated a valuation of $71.99 (USD) using other metrics and comparables.
The comparable companies were AAON (AAON:NAS), Beacon Roofing Supply (BECN:NAS), TopBuild (BLD:NYS), Installed Building Prods (IBP:NYS) and Louisiana-Pacific (LPX:NYS)

Company APOG:NAS End Date Value
Earnings/Share $2.76 (USD)
Book Value/Share $18.16 (USD)
Sales/Share $46.04 (USD)
Cash Flow/Share $4.43 (USD)
EBITDA/Share $0.00 (USD)
Price Based on Comps Adjustment Factor (%)
$68.28 (USD) -43.9
$81.79 (USD) -46.2
$86.16 (USD) -40.0
$91.91 (USD) -6.8
$0.00 (USD) 34.1
APOG:NAS Ratios Used Average Values AAON:NAS BECN:NAS BLD:NYS IBP:NYS LPX:NYS
15.11 PE Ratio 24.74 30.73 21.31 17.34 43.92 10.39
2.30 PB Ratio 4.50 7.00 1.79 2.68 8.55 2.51
0.91 PS Ratio 1.87 4.15 0.69 1.44 1.60 1.49
9.43 PCF Ratio 20.77 28.97 15.73 24.20 26.37 8.57
8.05 EV to EBITDA 14.90 18.27 15.88 18.94 16.10 5.32

Multiples

Using a multiples approach we generated a valuation of  $58.76 (USD) for APOG:NAS

Company APOG:NAS End Date Value
Earnings/Share $2.76 (USD)
Book Value/Share $18.16 (USD)
Sales/Share $46.04 (USD)
Cash Flow/Share $4.43 (USD)
EBITDA/Share $5.53 (USD)
Price Based on Comps Adjustment Factor
$56.99 (USD) 0
$59.24 (USD) 0
$63.98 (USD) 0
$57.43 (USD) 0
$56.19 (USD) 0
Ratios Ratio Average
PE Ratio 20.65
PB Ratio 3.26
PS Ratio 1.39
PCF Ratio 12.98
EV to EBITDA 10.15

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  APOG:NAS for the last 10 years was  3.16

We ran the Adjusted Book Value for  APOG:NAS and generated a book value of  $18.09 (USD)
By multiplying these we get an adjusted valuation of  $57.08 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for APOG:NAS. The 1 analysts have a concensus valuation for APOG:NAS for 2019 of $47.00 (USD).

APOG:NAS Apogee Enterprises

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2018-5-1

Current Price: not available

Analyst Consensus
USD Millions 2018 2019 2020
Mean EPS 3.23 3.43 3.91
# EPS Analysts 1 1 1
Mean Revenue 1,326.20 1,448.50 1,546.00
# Revenue Analysts 1 1 1
Mean Target Price 47.00
Mean Cash Flow
Mean EBITDA 169.10 185.80 203.80
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate 27.70 24.00 24.00
Mean Growth Rate 10.00
Mean Capital Expenditure

Company Overview (APOG:NAS USD)

Price 41.71
Range 41.20 – 42.14
52 week 38.70 – 58.13
Open 41.88
Vol / Avg. 247005/122140
Mkt cap 1.19B
P/E 15.11
Div/yield 0.63/0.01
EPS 2.97
Shares 28.64M
Beta 1.76
Summary chart

Detailed Company Description

Apogee Enterprises Inc is engaged in the design and development of value-added glass solutions for enclosing commercial buildings and framing art.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on www.stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

%d bloggers like this: