AZEK CO INC/THE (AZEK)
US05478C1053 - Common Stock
Overall AZEK gets a fundamental rating of 4 out of 10. We evaluated AZEK against 39 industry peers in the Building Products industry. AZEK has only an average score on both its financial health and profitability. AZEK is quite expensive at the moment. 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.
In multiple years AZEK reported negative net income over the last 5 years.
AZEK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AZEK's Return On Assets of 6.92% is in line compared to the rest of the industry. AZEK outperforms 46.15% of its industry peers.
AZEK has a Return On Equity (11.63%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.59%, AZEK is doing worse than 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AZEK is significantly below the industry average of 13.66%.
The 3 year average ROIC (4.64%) for AZEK is below the current ROIC(7.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 11.63% | ||
| ROIC | 7.59% |
ROA(3y)3.43%
ROA(5y)0.57%
ROE(3y)5.5%
ROE(5y)0.6%
ROIC(3y)4.64%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 10.94%, AZEK is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AZEK's Profit Margin has improved in the last couple of years.
The Operating Margin of AZEK (14.89%) is comparable to the rest of the industry.
AZEK's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 37.41%, AZEK is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Gross Margin of AZEK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.89% | ||
| PM (TTM) | 10.94% | ||
| GM | 37.41% |
OM growth 3YN/A
OM growth 5Y4.21%
PM growth 3YN/A
PM growth 5Y38.25%
GM growth 3Y-1.01%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AZEK is destroying value.
There is no outstanding debt for AZEK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.88 indicates that AZEK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.88, AZEK is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
AZEK has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as AZEK would need 3.18 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.18, AZEK perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
AZEK has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AZEK (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 5.88 |
ROIC/WACC0.74
WACC10.3%
2.3 Liquidity
A Current Ratio of 3.07 indicates that AZEK has no problem at all paying its short term obligations.
The Current ratio of AZEK (3.07) is better than 79.49% of its industry peers.
AZEK has a Quick Ratio of 2.11. This indicates that AZEK is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AZEK (2.11) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
AZEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.00%, which is quite impressive.
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.
EPS 1Y (TTM)60%
EPS 3Y6.98%
EPS 5YN/A
EPS Q2Q%-19.44%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.44%
3.2 Future
Based on estimates for the next years, AZEK will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.90% on average per year.
AZEK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.33% yearly.
EPS Next Y16.54%
EPS Next 2Y18.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.43%
Revenue Next 2Y7.33%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.48, 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 82.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.20, AZEK is valued a bit more expensive.
A Price/Forward Earnings ratio of 36.45 indicates a quite expensive valuation of AZEK.
76.92% of the companies in the same industry are cheaper than AZEK, based on the Price/Forward Earnings ratio.
AZEK is valuated expensively when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.48 | ||
| Fwd PE | 36.45 |
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 74.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AZEK is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.53 | ||
| EV/EBITDA | 21.93 |
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.
A more expensive valuation may be justified as AZEK's earnings are expected to grow with 18.90% in the coming years.
PEG (NY)2.57
PEG (5Y)N/A
EPS Next 2Y18.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AZEK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AZEK CO INC/THE
NYSE:AZEK (11/22/2024, 8:24:52 PM)
After market: 50.98 0 (0%)50.98
+1.17 (+2.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.48 | ||
| Fwd PE | 36.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.92% | ||
| ROE | 11.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.89% | ||
| PM (TTM) | 10.94% | ||
| GM | 37.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)60%
EPS 3Y6.98%
EPS 5Y
EPS Q2Q%
EPS Next Y16.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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