Apogee has gotten torched over the last six months - since December 2024, its stock price has dropped 50.1% to $38.55 per share. This may have investors wondering how to approach the situation.
Is there a buying opportunity in Apogee, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Is Apogee Not Exciting?
Even with the cheaper entry price, we don't have much confidence in Apogee. Here are three reasons why we avoid APOG and a stock we'd rather own.
1. Long-Term Revenue Growth Flatter Than a Pancake
Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Apogee struggled to consistently increase demand as its $1.36 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of lacking business quality. 
2. Projected Revenue Growth Shows Limited Upside
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Apogee’s revenue to stall. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average.
3. Free Cash Flow Margin Dropping
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Apogee’s margin dropped by 2.8 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Apogee’s free cash flow margin for the trailing 12 months was 6.6%.
Final Judgment
Apogee isn’t a terrible business, but it doesn’t pass our bar. After the recent drawdown, the stock trades at 9.1× forward P/E (or $38.55 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. Let us point you toward the Amazon and PayPal of Latin America.
Stocks We Would Buy Instead of Apogee
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.