AZEK CO INC/THE (AZEK) Fundamental Analysis & Valuation

NYSE:AZEK • US05478C1053

Current stock price

54.35 USD
-0.51 (-0.93%)
At close:
54.35 USD
0 (0%)
After Hours:

This AZEK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AZEK Profitability Analysis

1.1 Basic Checks

  • AZEK had positive earnings in the past year.
  • In the past year AZEK had a positive cash flow from operations.
  • AZEK had positive earnings in 4 of the past 5 years.
  • AZEK had a positive operating cash flow in each of the past 5 years.
AZEK Yearly Net Income VS EBIT VS OCF VS FCFAZEK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

  • AZEK has a Return On Assets (6.56%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 10.38%, AZEK is in line with its industry, outperforming 45.24% of the companies in the same industry.
  • AZEK has a Return On Invested Capital (8.35%) which is in line with its industry peers.
  • AZEK had an Average Return On Invested Capital over the past 3 years of 5.62%. This is significantly below the industry average of 11.91%.
  • The 3 year average ROIC (5.62%) for AZEK is below the current ROIC(8.35%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.56%
ROE 10.38%
ROIC 8.35%
ROA(3y)4.37%
ROA(5y)2.21%
ROE(3y)7.09%
ROE(5y)3.69%
ROIC(3y)5.62%
ROIC(5y)N/A
AZEK Yearly ROA, ROE, ROICAZEK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

  • AZEK has a Profit Margin (9.92%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of AZEK has grown nicely.
  • AZEK has a Operating Margin of 15.45%. This is comparable to the rest of the industry: AZEK outperforms 57.14% of its industry peers.
  • In the last couple of years the Operating Margin of AZEK has grown nicely.
  • AZEK's Gross Margin of 37.19% is fine compared to the rest of the industry. AZEK outperforms 61.90% of its industry peers.
  • In the last couple of years the Gross Margin of AZEK has grown nicely.
Industry RankSector Rank
OM 15.45%
PM (TTM) 9.92%
GM 37.19%
OM growth 3Y6.95%
OM growth 5Y14.24%
PM growth 3Y10.41%
PM growth 5YN/A
GM growth 3Y4.35%
GM growth 5Y3.35%
AZEK Yearly Profit, Operating, Gross MarginsAZEK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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7

2. AZEK Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AZEK is destroying value.
  • AZEK has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, AZEK has more shares outstanding
  • AZEK has a better debt/assets ratio than last year.
AZEK Yearly Shares OutstandingAZEK Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
AZEK Yearly Total Debt VS Total AssetsAZEK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • AZEK has an Altman-Z score of 6.82. This indicates that AZEK is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of AZEK (6.82) is better than 80.95% of its industry peers.
  • The Debt to FCF ratio of AZEK is 2.56, which is a good value as it means it would take AZEK, 2.56 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of AZEK (2.56) is better than 73.81% of its industry peers.
  • A Debt/Equity ratio of 0.36 indicates that AZEK is not too dependend on debt financing.
  • The Debt to Equity ratio of AZEK (0.36) is better than 61.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 2.56
Altman-Z 6.82
ROIC/WACC0.82
WACC10.14%
AZEK Yearly LT Debt VS Equity VS FCFAZEK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

  • AZEK has a Current Ratio of 2.45. This indicates that AZEK is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 2.45, AZEK is doing good in the industry, outperforming 64.29% of the companies in the same industry.
  • AZEK has a Quick Ratio of 1.47. This is a normal value and indicates that AZEK is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.47, AZEK is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.45
Quick Ratio 1.47
AZEK Yearly Current Assets VS Current LiabilitesAZEK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AZEK Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.65% over the past year.
  • The Earnings Per Share has been growing slightly by 6.98% on average over the past years.
  • AZEK shows a small growth in Revenue. In the last year, the Revenue has grown by 5.92%.
  • AZEK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.66% yearly.
EPS 1Y (TTM)15.65%
EPS 3Y6.98%
EPS 5YN/A
EPS Q2Q%15.38%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y6.93%
Revenue growth 5Y12.66%
Sales Q2Q%8.08%

3.2 Future

  • AZEK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.01% yearly.
  • The Revenue is expected to grow by 7.89% on average over the next years.
EPS Next Y19.01%
EPS Next 2Y17.77%
EPS Next 3Y18.01%
EPS Next 5YN/A
Revenue Next Year7.39%
Revenue Next 2Y7.55%
Revenue Next 3Y7.89%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AZEK Yearly Revenue VS EstimatesAZEK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
AZEK Yearly EPS VS EstimatesAZEK Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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1

4. AZEK Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 40.86, the valuation of AZEK can be described as expensive.
  • Based on the Price/Earnings ratio, AZEK is valued more expensive than 80.95% of the companies in the same industry.
  • AZEK is valuated expensively when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 32.66 indicates a quite expensive valuation of AZEK.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AZEK indicates a slightly more expensive valuation: AZEK is more expensive than 76.19% of the companies listed in the same industry.
  • AZEK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 40.86
Fwd PE 32.66
AZEK Price Earnings VS Forward Price EarningsAZEK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • AZEK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AZEK is more expensive than 76.19% of the companies in the same industry.
  • AZEK's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 37.6
EV/EBITDA 22.4
AZEK Per share dataAZEK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AZEK does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of AZEK may justify a higher PE ratio.
  • A more expensive valuation may be justified as AZEK's earnings are expected to grow with 18.01% in the coming years.
PEG (NY)2.15
PEG (5Y)N/A
EPS Next 2Y17.77%
EPS Next 3Y18.01%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AZEK Dividend Analysis

5.1 Amount

  • AZEK does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AZEK Fundamentals: All Metrics, Ratios and Statistics

AZEK CO INC/THE

NYSE:AZEK (6/30/2025, 8:04:00 PM)

After market: 54.35 0 (0%)

54.35

-0.51 (-0.93%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)05-06
Earnings (Next)08-05
Inst Owners99.39%
Inst Owner Change-95.94%
Ins Owners1.64%
Ins Owner Change0%
Market Cap7.82B
Revenue(TTM)1.52B
Net Income(TTM)150.88M
Analysts71.43
Price Target54.47 (0.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.96%
Min EPS beat(2)1.33%
Max EPS beat(2)26.6%
EPS beat(4)4
Avg EPS beat(4)12.07%
Min EPS beat(4)1.33%
Max EPS beat(4)26.6%
EPS beat(8)7
Avg EPS beat(8)21.97%
EPS beat(12)10
Avg EPS beat(12)19.35%
EPS beat(16)14
Avg EPS beat(16)17.04%
Revenue beat(2)1
Avg Revenue beat(2)2.68%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)5.59%
Revenue beat(4)3
Avg Revenue beat(4)3.37%
Min Revenue beat(4)-0.23%
Max Revenue beat(4)7.44%
Revenue beat(8)6
Avg Revenue beat(8)2.31%
Revenue beat(12)10
Avg Revenue beat(12)2.55%
Revenue beat(16)13
Avg Revenue beat(16)3.02%
PT rev (1m)0%
PT rev (3m)-3.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.06%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
Industry RankSector Rank
PE 40.86
Fwd PE 32.66
P/S 5.14
P/FCF 37.6
P/OCF 24.73
P/B 5.38
P/tB 22.88
EV/EBITDA 22.4
EPS(TTM)1.33
EY2.45%
EPS(NY)1.66
Fwd EY3.06%
FCF(TTM)1.45
FCFY2.66%
OCF(TTM)2.2
OCFY4.04%
SpS10.57
BVpS10.11
TBVpS2.38
PEG (NY)2.15
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 6.56%
ROE 10.38%
ROCE 11.34%
ROIC 8.35%
ROICexc 8.98%
ROICexgc 21.29%
OM 15.45%
PM (TTM) 9.92%
GM 37.19%
FCFM 13.68%
ROA(3y)4.37%
ROA(5y)2.21%
ROE(3y)7.09%
ROE(5y)3.69%
ROIC(3y)5.62%
ROIC(5y)N/A
ROICexc(3y)6.17%
ROICexc(5y)N/A
ROICexgc(3y)16.3%
ROICexgc(5y)N/A
ROCE(3y)7.64%
ROCE(5y)N/A
ROICexgc growth 3Y8.85%
ROICexgc growth 5Y6.33%
ROICexc growth 3Y13.94%
ROICexc growth 5Y24.98%
OM growth 3Y6.95%
OM growth 5Y14.24%
PM growth 3Y10.41%
PM growth 5YN/A
GM growth 3Y4.35%
GM growth 5Y3.35%
F-Score8
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 2.56
Debt/EBITDA 1.43
Cap/Depr 82.4%
Cap/Sales 7.12%
Interest Coverage 5.43
Cash Conversion 86.34%
Profit Quality 137.81%
Current Ratio 2.45
Quick Ratio 1.47
Altman-Z 6.82
F-Score8
WACC10.14%
ROIC/WACC0.82
Cap/Depr(3y)90.69%
Cap/Depr(5y)108.06%
Cap/Sales(3y)8.18%
Cap/Sales(5y)10%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.65%
EPS 3Y6.98%
EPS 5YN/A
EPS Q2Q%15.38%
EPS Next Y19.01%
EPS Next 2Y17.77%
EPS Next 3Y18.01%
EPS Next 5YN/A
Revenue 1Y (TTM)5.92%
Revenue growth 3Y6.93%
Revenue growth 5Y12.66%
Sales Q2Q%8.08%
Revenue Next Year7.39%
Revenue Next 2Y7.55%
Revenue Next 3Y7.89%
Revenue Next 5YN/A
EBIT growth 1Y15.39%
EBIT growth 3Y14.36%
EBIT growth 5Y28.71%
EBIT Next Year60.74%
EBIT Next 3Y24.99%
EBIT Next 5YN/A
FCF growth 1Y59.09%
FCF growth 3Y65.33%
FCF growth 5Y35.8%
OCF growth 1Y33.75%
OCF growth 3Y2.62%
OCF growth 5Y18.79%

AZEK CO INC/THE / AZEK Fundamental Analysis FAQ

What is the fundamental rating for AZEK stock?

ChartMill assigns a fundamental rating of 5 / 10 to AZEK.


What is the valuation status of AZEK CO INC/THE (AZEK) stock?

ChartMill assigns a valuation rating of 1 / 10 to AZEK CO INC/THE (AZEK). This can be considered as Overvalued.


How profitable is AZEK CO INC/THE (AZEK) stock?

AZEK CO INC/THE (AZEK) has a profitability rating of 6 / 10.


How financially healthy is AZEK CO INC/THE?

The financial health rating of AZEK CO INC/THE (AZEK) is 7 / 10.


What is the earnings growth outlook for AZEK CO INC/THE?

The Earnings per Share (EPS) of AZEK CO INC/THE (AZEK) is expected to grow by 19.01% in the next year.