M.Cap: $1.07 billion

The company is a manufacturer and supplier of residential impact-resistant windows and doors.  WinGuard is an impact-resistant product line that combines heavy-duty aluminum or vinyl frames with laminated glass to provide protection from hurricane-force winds and wind-borne debris. WinGuard, its flagship product, also protects against outside noise, break-ins, UV rays and high energy bills.

Broad Bay Capital Management

• The top ten stocks account for 82% of the total portfolio.
• PGT accounts for 8% of the total portfolio – Rank #6

Spitfire Capital

• Highly concentrated fund – owns only fifteen stocks
• PGT accounts for 4.8% of the total portfolio – Rank #12

Sign of Moat

(a) Brand

PGT WinGuard® is synonymous with impact-resistant windows and doors.

(b) Market leader in Florida

PGT has the #1 position in the market for impact-resistant windows and doors in Florida. According to published data, the company enjoys over 50% of the market share in Florida. More than 80% of total sales are generated in Florida. There are some areas in Florida where building codes require impact resistance.  According to a 2014 report by Karen Clark & Company, four of the top eight US cities that are most vulnerable to major storms are located in Florida.

(c) Proven track record

Over three million WinGuard® units have been installed, with zero reported impact failures. It is difficult for a new entrant to create this track record.

(d) Growth: Since 2014, the company’s vinyl WinGuard products have grown at a compound annual rate of nearly 35%.