PGT Innovations’ Profitability Reaches 20% Return On Capital Employed
December 28, 2022
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PGT ($NYSE:PGTI) Innovations is a leading manufacturer and distributor of impact-resistant windows and doors in the United States. The company offers a variety of products designed to meet the needs of both homeowners and commercial customers. PGT Innovations‘ main product line consists of vinyl, aluminum and composite windows and doors, along with hurricane-rated protection options. Return On Capital Employed (ROCE) is a measure of a company’s profitability. It is calculated by taking the company’s net operating profit divided by its total capital employed. Currently, PGT Innovations’ ROCE is at 20%. This indicates that the company is making the most of its capital investments, as it is able to generate a return that is greater than its cost of capital. What’s more, PGT Innovations has increased its profitability in the past five years.
This marks a significant improvement in the company’s ability to generate returns from its investments. PGT Innovations has achieved this by focusing on operational efficiencies and cost control. The company has implemented several initiatives to streamline operations, such as reducing overhead costs and improving production processes. This has enabled PGT Innovations to increase its bottom line while still delivering quality products to customers. The company has been able to successfully leverage its capital investments to generate returns that exceed its cost of capital, and it has been able to improve its profitability over the last five years. This is great news for investors and should be a positive sign for the future of the company.
Market Price
At the time of writing, news on PGT Innovations’ profitability is mostly positive. On Wednesday, PGT INNOVATIONS stock opened at $18.2 and closed at $18.1, up by 0.2% from prior closing price of 18.0. This increase in stock prices indicates that investors are becoming more confident in PGT Innovations’ profitability and its ability to generate returns for them. This is indicative of the prudent financial management strategies put in place by PGT Innovations and its executive team. The return on capital employed is a measure of how efficiently the company is generating returns on its capital investments, so this result shows that PGT Innovations is making wise use of its resources and investments.
The increasing profitability of PGT Innovations is also good news for its shareholders. The higher return on capital employed will mean higher dividends for the shareholders, as well as potential capital gains if the company continues to perform well. This will create a virtuous cycle where more investors are attracted to the stock and the stock prices go up even further. The increasing profitability is an indication that the company is well managed and that it is making good use of its resources to generate returns for its investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pgt Innovations. More…
| Total Revenues | Net Income | Net Margin |
| 1.46k | 102.47 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pgt Innovations. More…
| Operations | Investing | Financing |
| 196.05 | -147.44 | 55.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pgt Innovations. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.6k | 949.43 | 10.22 |
Key Ratios Snapshot
Some of the financial key ratios for Pgt Innovations are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.2% | 23.1% | 11.7% |
| FCF Margin | ROE | ROA |
| 11.2% | 17.8% | 6.6% |
VI Analysis
PGT Innovations is a company with strong fundamentals that reflect its long term potential. According to VI’s Star Chart, PGT Innovations is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Such a company will be of interest to investors who are looking for growth potential and stability. PGT Innovations is strong in growth and profitability, medium in asset and weak in dividend. The company has a high health score of 8/10 with regard to its cashflows and debt, meaning it is capable of paying off debt and funding future operations. Overall, PGT Innovations is a company with strong fundamentals and a promising long-term outlook. With its competitive advantage and ability to pay off debt and fund future operations, the company is likely to be of interest to investors who are looking for growth potential and stability. More…
VI Peers
There is significant competition between PGT Innovations Inc and its competitors Tyman PLC, Beacon Roofing Supply Inc, Quanex Building Products Corp. All four companies compete for market share in the manufacture and sale of windows, doors, and other building products. PGT Innovations Inc has a significant competitive advantage in its ability to vertically integrate the production of its products. This means that PGT Innovations Inc can control the quality of its products from start to finish, ensuring that its products are of the highest possible quality. Additionally, PGT Innovations Inc has a strong brand name and reputation, which gives it a leg up on its competitors.
– Tyman PLC ($LSE:TYMN)
Tyman PLC is a British-based manufacturer and supplier of door and window products. The company has a market cap of 382.79M as of 2022 and a Return on Equity of 9.35%. Tyman PLC supplies a range of door and window products to the construction, repair and maintenance markets in the United Kingdom, Europe, North America and Asia Pacific. The company’s products include door and window frames, doors, windows, hardware, glass and glazing products.
– Beacon Roofing Supply Inc ($NASDAQ:BECN)
Beacon Roofing Supply Inc is a leading distributor of roofing materials and supplies in the United States. The company has a market cap of 3.54 billion and a return on equity of 13.72%. Beacon Roofing Supply Inc is a publicly traded company on the Nasdaq Stock Market under the ticker symbol BECN. The company was founded in 1928 and is headquartered in Herndon, Virginia. Beacon Roofing Supply Inc operates more than 400 locations in 40 states across the United States. The company offers a wide range of roofing materials and supplies, including asphalt shingles, metal roofing, slate roofing, tile roofing, and more.
– Quanex Building Products Corp ($NYSE:NX)
Quanex Building Products Corporation is a leading provider of engineered products, services and solutions for the global residential new construction, repair and remodeling, and commercial construction markets. The Company operates in three segments: Engineered Components, Cabinets & Windows, and Insulation. Quanex Building Products Corporation is headquartered in Houston, Texas.
As of 2022, Quanex Building Products Corporation had a market cap of 649M and a Return on Equity of 15.63%. The company operates in three segments: Engineered Components, Cabinets & Windows, and Insulation. Quanex Building Products Corporation is headquartered in Houston, Texas.
Summary
PGT Innovations is a company that is proving to be a sound investment, with a 20% return on capital employed at the time of writing. This high rate of return demonstrates the strength of the company’s financial performance and the potential for further growth. Investors should consider the company’s financials and its competitive advantages when making an investment decision. PGT Innovations has a strong management team, a wide range of products and services, and a well-established presence in the market. The company’s strategic partnerships and collaborations also provide opportunities for further growth.
In addition, the company’s focus on innovation and customer service have positioned it to take advantage of emerging trends in the industry. With these factors in mind, PGT Innovations may be an attractive investment option for those looking for a strong return on their capital.
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