AZEK CO INC/THE (AZEK) Stock Fundamental Analysis
NYSE:AZEK - New York Stock Exchange, Inc. - US05478C1053 - Common Stock - Currency: USD
AZEK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. Both the profitability and the financial health of AZEK get a neutral evaluation. Nothing too spectacular is happening here. AZEK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AZEK had positive earnings in the past year.
AZEK had a positive operating cash flow in the past year.
Of the past 5 years AZEK 4 years were profitable.
In the past 5 years AZEK always reported a positive cash flow from operatings.
1.2 Ratios
AZEK's Return On Assets of 6.56% is in line compared to the rest of the industry. AZEK outperforms 52.38% of its industry peers.
AZEK has a Return On Equity (10.38%) which is comparable to the rest of the 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 12.98%.
The last Return On Invested Capital (8.35%) for AZEK is above the 3 year average (5.62%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of AZEK (9.92%) is comparable to the rest of the industry.
AZEK's Profit Margin has improved in the last couple of years.
AZEK's Operating Margin of 15.45% is in line compared to the rest of the industry. AZEK outperforms 57.14% of its industry peers.
AZEK's Operating Margin has improved in the last couple of years.
AZEK has a Gross Margin of 37.19%. This is in the better half 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
AZEK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AZEK has less shares outstanding
The number of shares outstanding for AZEK has been increased compared to 5 years ago.
The debt/assets ratio for AZEK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.46 indicates that AZEK is not in any danger for bankruptcy at the moment.
AZEK's Altman-Z score of 6.46 is fine compared to the rest of the industry. AZEK outperforms 71.43% 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.
AZEK has a Debt to FCF ratio of 2.56. This is in the better half of the industry: AZEK outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that AZEK is not too dependend on debt financing.
AZEK's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. AZEK outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 6.46 |
ROIC/WACC0.85
WACC9.87%
2.3 Liquidity
A Current Ratio of 2.45 indicates that AZEK has no problem at all paying its short term obligations.
AZEK has a better Current ratio (2.45) than 61.90% of its industry peers.
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.
AZEK has a Quick ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
AZEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.65%, which is quite good.
Measured over the past 5 years, AZEK shows a small growth in Earnings Per Share. The EPS has been growing by 6.98% on average per year.
AZEK shows a small growth in Revenue. In the last year, the Revenue has grown by 5.92%.
The Revenue has been growing by 12.66% on average over the past years. This is quite good.
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 18.21% yearly.
AZEK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.15% yearly.
EPS Next Y18.61%
EPS Next 2Y17.7%
EPS Next 3Y18.21%
EPS Next 5YN/A
Revenue Next Year7.39%
Revenue Next 2Y7.58%
Revenue Next 3Y8.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.52, which means the current valuation is very expensive for AZEK.
76.19% of the companies in the same industry are cheaper than AZEK, based on the Price/Earnings ratio.
AZEK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
AZEK is valuated quite expensively with a Price/Forward Earnings ratio of 30.02.
71.43% of the companies in the same industry are cheaper than AZEK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AZEK to the average of the S&P500 Index (22.43), we can say AZEK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.52 | ||
| Fwd PE | 30.02 |
4.2 Price Multiples
73.81% of the companies in the same industry are cheaper than AZEK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AZEK is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.52 | ||
| EV/EBITDA | 21.01 |
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 18.21% in the coming years.
PEG (NY)2.02
PEG (5Y)N/A
EPS Next 2Y17.7%
EPS Next 3Y18.21%
5. Dividend
5.1 Amount
AZEK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AZEK (5/21/2025, 1:16:01 PM)
49.9
-0.92 (-1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners102.98%
Inst Owner Change-2.9%
Ins Owners1.69%
Ins Owner Change-0.14%
Market Cap7.18B
Analysts71.43
Price Target54.69 (9.6%)
Short Float %5.31%
Short Ratio1.75
Dividend
| Industry Rank | Sector 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)-3.32%
PT rev (3m)-2.51%
EPS NQ rev (1m)-7.17%
EPS NQ rev (3m)-7.64%
EPS NY rev (1m)-1.85%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)-3.83%
Revenue NQ rev (3m)-3.79%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.52 | ||
| Fwd PE | 30.02 | ||
| P/S | 4.72 | ||
| P/FCF | 34.52 | ||
| P/OCF | 22.7 | ||
| P/B | 4.94 | ||
| P/tB | 21 | ||
| EV/EBITDA | 21.01 |
EPS(TTM)1.33
EY2.67%
EPS(NY)1.66
Fwd EY3.33%
FCF(TTM)1.45
FCFY2.9%
OCF(TTM)2.2
OCFY4.4%
SpS10.57
BVpS10.11
TBVpS2.38
PEG (NY)2.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3Y8.85%
ROICexcg 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 Rank | Sector 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 | 6.46 |
F-Score8
WACC9.87%
ROIC/WACC0.85
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 Y18.61%
EPS Next 2Y17.7%
EPS Next 3Y18.21%
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 2Y7.58%
Revenue Next 3Y8.15%
Revenue Next 5YN/A
EBIT growth 1Y15.39%
EBIT growth 3Y14.36%
EBIT growth 5Y28.71%
EBIT Next Year61.07%
EBIT Next 3Y25.11%
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%