Apogee Enterprises, Inc. (APOG)

Adding a few random stocks from a screen:
P/FCF<10
Debt/Equity<0.1
PEG<1
P/S<1

This company provides glass products and related services. This company has no debt and a very attractive valuation (P/E=8, P/S=0.5, P/B=1.2). It has a solid history of dividend payment with the current payout ration of 18%. PEG ratio is close to 1 which signifies the fact that the company is growing. Return on equity is over 15%.

Upthumb. Very good cash flow. 10% sales growth rate over 5 years, average. Good cash balance and no appreciable debt. Good margins.

construction, glass

Environmentally-friendly technology and pristine balance sheet.

Considering Book value, earnings, and market cap...this should beat the market in 5 years.

This is a business that is flying under the radar right now. After going over APOG, it appears to be at a huge discount-- extremely low debt (27m in cash vs. 8m in total debt), quarterly cash dividend since '74 with a current payout ratio of only 17%, and a history of positive, and growing, free cash flow. Other fundamentals don't look too shabby either.

I only spent a little bit of time checking out management but from what I found, it looked great. 3 of the 5 officers have at least 10 years of experience, meaning they're building from the ground up so to speak. In FY 2009, they exited the auto replacement glass industry to focus more on its staple, architectural glass. This therefore simplified the business model. What did management do with that $27.1 million? Used it to pay off most of its long term debt. That's the type of management I want. I haven't checked up too much on salaries, risks, or outlooks past FY 2010 so excuse me if I've missed a glaring dark spot.

After attempting to acheive an intrinsic value of APOG, I used several growth rates. A more conservative (and I mean conservative) rate of growth was zero percent, which came up with an intrinsic value of $25.24 (44% MOS). I found this using the DCF method. Using Graham's Intrinsic formula and Yahoo!'s estimated growth rate (13%), I came to $37.58 (63& MOS)

This stock definitely looks like a bargain IMO and I will update this pick once I learn more about the management.

Intrinsic value of $40.22

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

E2008-09-18 11am Construction materials. Despite the sector, there is too much enthusiasm for this stock. Missed earnings. But this weekend, the Feds decided to nationalize FNM, FRE. May be perceived as the turning point for housing and construction. Therefore I will upthumb it.

Big drop today. No dead cat bounce here. This one is alive and got a long life ahead.

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.