(APOG) Apogee Enterprises - Ratings and Ratios

Apogee Enterprises (NASDAQ:APOG) is a U.S.-based builder of residential and commercial building products, classified under the Building Products sub‑industry. The company’s equity is publicly traded as common stock.

The share price is hovering near $44, trading marginally above its 20‑day moving average (~$43) and 50‑day average (~$42) while still below the 200‑day average (~$51), indicating short‑term bullish momentum but medium‑term bearish pressure. Volatility is modest (ATR ≈ 1.16, ~2.6% of price) and beta is essentially neutral (≈ 1.0), so price moves are closely tied to overall market swings.

Market capitalization sits just under $920 million, with a trailing P/E of roughly 18× and a forward P/E near 13×, suggesting the market prices earnings at a modest premium relative to peers. Return on equity is about 10%, reflecting moderate efficiency in capital deployment.

Key performance drivers include residential construction activity, housing starts, and renovation spending, all of which directly affect demand for Apogee’s siding, decking, and roofing products. Input cost exposure is high for lumber and steel; recent supply‑chain tightening has pressured margins, making cost‑pass‑through capability a critical lever.

Revenue growth has averaged 4‑5% YoY over the last three years, with the majority of sales generated in the United States Midwest and South regions. EBITDA margins have compressed from 12% to 9% as raw‑material inflation outpaced price increases, prompting the firm to accelerate its “value‑engineered” product line to protect profitability.

Balance‑sheet strength is anchored by a debt‑to‑EBITDA ratio of roughly 3.2×, indicating a moderate leverage level. Cash flow from operations consistently covers interest expense, and the company maintains a modest dividend yield of ~1.2% with a payout ratio near 30%, leaving ample capacity for share repurchases.

Recent strategic moves include the acquisition of a specialty roofing manufacturer in 2022, expanding product breadth and cross‑selling opportunities, and a targeted capital‑expenditure program aimed at modernizing production lines to improve labor productivity by 8% annually.

Economic sensitivity is high: a 1% decline in housing starts historically translates to a 0.7% dip in revenue. Conversely, a sustained upward trend in home‑improvement spending can boost top‑line growth independent of new construction. Monitoring the U.S. housing index, lumber price trends, and Fed policy on interest rates is essential for forecasting near‑term performance.