Apogee Enterprises, Inc. (NASDAQ:APOG)

Homebuilding and related materials are on the rise and real estate is slowly coming back. Expanding plants to increase production as well.

Long-term growth prospects are excellent, although this year will be another challenging one. Considering net current assets, a 3% margin (below the 4-4.7% average for the last 5 years), and a 15% decline in revenues this year, I believe today's price ($12.88) is a fair discounted price for APOG. That said, it still may hit $10 due to panic, but the company is solid in the long-run.

good company

Consistent earnings even in a difficult economy coupled with very low long term debt obligations make this company a great candidate to perform well for at least the next few years. The margins are lower than ideal, but given the other characteristics, they are more than worth the risk of increased competition.

good dividend and tax credits for business activity. established business in the new global trend of going green. ahead of the curve and oversold. P/E around 8, and stimulus on the way.

Apogee is that quintessential Hidden Gems I bet Bill Mann would have picked if he were still at HG.

I'm in the construction industry and can relate. They design and develop windows - exciting stuff right? The "green energy" movement for buildings is real. Energy star buildings and LEED certified buildings mean something. Rents are higher and many government institutions require it for new leased spaces.

- Revenues have steadily increased over the last few years including during the major recession.
- The Earnings yield is 11.3% and the dividend yield is 2.5%. Revenue growth over the last few years have been 5-15%
- Book value is cheap - tangible book value is just 1.26 and 1/5th of the market cap is cash. Very little long term debt.
- 6% of the company is held by insiders and generally speaking the management has significant tenure.

going to 20

Apogee has nice dividend + yield percent, lots of cash on balance sheet, reasonable gross margins in terms of the sector, and lots of earnings beats 6 out of 8. What more should I look at to determine whether this is an undervalued stock? The P/E is well below the sector average! The stock used to trade at $30.

Strong balance sheet, low price to sales (0.4x). 13.5x interest coverage. Debt to capital of only 8%.

Net profit margin over 5%. This is a super company that has been battered by the housing crisis. That the balance sheet and margins are so good tells you this stock will rocket once the economy stabilizes.

Cash flow and management

This is not a short term call at all. If you want to help your CAPS over a 5+ year period, then this is a good call. Over the last 10 years this company has outperformed the S&P with the exception of a short period last fall when everyone is going in the dump anyway.

Company has just under a billion in sales with a 8% + growth over the last 5 years; those sales generated a 5.62% net profit which has also grown over 8% over the last 5 years; generated a $1.91 EPS last year. At $13 it is half of its 52 week average and is on the way back up.

Wow. Get in now.

Buy low

APOG is a diamond in the rough. This is long term easy money, just wait until they expand their international exposure...

30+

http://www.fool.com/investing/small-cap/2008/06/11/where-the-market-is-headed-next.aspx

Solid fundamentals. Consistently growing company.

bigprofits are in the making

These guys make all sorts of stuff for Planes and cars. Look for a 2/3 stock jump in a year.