AZEK CO INC/THE (AZEK) Stock Fundamental Analysis
USA - NYSE:AZEK - US05478C1053 - Common Stock
54.35 USD
-0.51 (-0.93%)
54.35 USD
0 (0%)
Taking everything into account, AZEK scores 5 out of 10 in our fundamental rating. AZEK was compared to 41 industry peers in the Building Products industry. While AZEK has a great health rating, its profitability is only average at the moment. AZEK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AZEK was profitable.
In the past year AZEK had a positive cash flow from operations.
AZEK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AZEK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.56%, AZEK is in line with its industry, outperforming 54.76% of the companies in the same industry.
AZEK has a Return On Equity (10.38%) which is comparable to the rest of the industry.
AZEK's Return On Invested Capital of 8.35% is in line compared to the rest of the industry. AZEK outperforms 47.62% of 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 12.50%.
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
AZEK has a Profit Margin (9.92%) which is in line with its industry peers.
AZEK's Profit Margin has improved in the last couple of years.
The Operating Margin of AZEK (15.45%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AZEK has grown nicely.
Looking at the Gross Margin, with a value of 37.19%, AZEK is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
AZEK's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AZEK is destroying value.
The number of shares outstanding for AZEK has been reduced compared to 1 year ago.
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
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.
AZEK has a Altman-Z score of 6.82. This is amongst the best in the industry. AZEK outperforms 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.
AZEK has a Debt to FCF ratio of 2.56. This is in the better half of the industry: AZEK outperforms 73.81% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that AZEK is not too dependend on debt financing.
AZEK has a better Debt to Equity ratio (0.36) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 6.82 |
ROIC/WACC0.82
WACC10.14%
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.
Looking at the Current ratio, with a value of 2.45, AZEK is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that AZEK should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.65% over the past year.
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.
Looking at the last year, AZEK shows a small growth in Revenue. The Revenue has grown by 5.92% in the last year.
Measured over the past years, AZEK shows a quite strong growth in Revenue. The Revenue has been growing by 12.66% on average per year.
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.
Based on estimates for the next years, AZEK will show a small growth in Revenue. The Revenue will grow by 7.89% on average per year.
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
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
Based on the Price/Earnings ratio of 40.86, the valuation of AZEK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AZEK indicates a rather expensive valuation: AZEK more expensive than 80.95% of the companies listed in the same industry.
AZEK is valuated expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
AZEK is valuated quite expensively with a Price/Forward Earnings ratio of 32.66.
76.19% of the companies in the same industry are cheaper than AZEK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.68. AZEK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.86 | ||
| Fwd PE | 32.66 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as AZEK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.6 | ||
| EV/EBITDA | 22.4 |
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.
AZEK has a very decent profitability rating, which 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%
5. Dividend
5.1 Amount
No dividends for AZEK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.35
-0.51 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.39%
Inst Owner Change-2.87%
Ins Owners1.64%
Ins Owner Change-4.83%
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 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)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 Rank | Sector 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 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
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 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 | 6.82 |
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 FAQ
What is the fundamental rating for AZEK stock?
ChartMill assigns a fundamental rating of 5 / 10 to AZEK.
Can you provide the valuation status for AZEK CO INC/THE?
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.
What is the financial health of AZEK CO INC/THE (AZEK) stock?
The financial health rating of AZEK CO INC/THE (AZEK) is 7 / 10.
What is the expected EPS growth for AZEK CO INC/THE (AZEK) stock?
The Earnings per Share (EPS) of AZEK CO INC/THE (AZEK) is expected to grow by 19.01% in the next year.