AZEK CO INC/THE (AZEK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZEK - US05478C1053 - Common Stock
54.35 USD
-0.51 (-0.93%)
54.35 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AZEK. AZEK was compared to 42 industry peers in the Building Products industry. AZEK is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
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
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.
The Return On Invested Capital of AZEK (8.35%) is comparable to the rest of the industry.
AZEK had an Average Return On Invested Capital over the past 3 years of 5.62%. This is significantly below the industry average of 12.60%.
The 3 year average ROIC (5.62%) for AZEK is below the current ROIC(8.35%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.92%, AZEK is in line with its industry, outperforming 57.14% of the companies in the same industry.
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.
AZEK's Operating Margin has improved in the last couple of years.
The Gross Margin of AZEK (37.19%) is better than 61.90% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AZEK is destroying value.
The number of shares outstanding for AZEK has been reduced compared to 1 year ago.
Compared to 5 years ago, AZEK has more shares outstanding
Compared to 1 year ago, AZEK has an improved debt to assets ratio.
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.
AZEK has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
AZEK has a Debt to Equity ratio of 0.36. This is in the better half of the industry: AZEK outperforms 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
A Current Ratio of 2.45 indicates that AZEK has no problem at all paying its short term obligations.
AZEK has a Current ratio of 2.45. This is in the better half of the industry: AZEK outperforms 64.29% of its industry peers.
A Quick Ratio of 1.47 indicates that AZEK should not have too much problems paying its short term obligations.
AZEK has a better Quick ratio (1.47) than 61.90% of its industry peers.
| 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.
AZEK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.98% yearly.
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
The Earnings Per Share is expected to grow by 18.01% on average over the next years. This is quite good.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
AZEK's Price/Earnings ratio is rather expensive when compared to the industry. AZEK is more expensive than 80.95% of the companies in the same industry.
AZEK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.61.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, AZEK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.86 | ||
| Fwd PE | 32.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZEK indicates a slightly more expensive valuation: AZEK is more expensive than 76.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZEK is on the same level as its industry peers.
| 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.
AZEK's earnings are expected to grow with 18.01% in the coming years. This may justify a more expensive valuation.
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-97.24%
Ins Owners1.64%
Ins Owner Change-4.71%
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.