AZEK CO INC/THE (AZEK)
US05478C1053 - Common Stock
Taking everything into account, AZEK scores 4 out of 10 in our fundamental rating. AZEK was compared to 39 industry peers in the Building Products industry. AZEK has an average financial health and profitability rating. 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.08%, AZEK is in line with its industry, outperforming 48.72% of the companies in the same industry.
The Return On Equity of AZEK (11.30%) is comparable to the rest of the industry.
AZEK has a Return On Invested Capital of 8.08%. This is in the lower half of the industry: AZEK underperforms 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZEK is significantly below the industry average of 13.33%.
The 3 year average ROIC (5.62%) for AZEK is below the current ROIC(8.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 11.3% | ||
| ROIC | 8.08% |
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
With a decent Profit Margin value of 10.64%, 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.
AZEK has a Operating Margin (14.85%) which is in line with its industry peers.
AZEK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.59%, AZEK is in the better half of 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 | 14.85% | ||
| PM (TTM) | 10.64% | ||
| GM | 37.59% |
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.
The number of shares outstanding for AZEK has been increased compared to 5 years ago.
AZEK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.40 indicates that AZEK is not in any danger for bankruptcy at the moment.
The Altman-Z score of AZEK (6.40) is better than 76.92% of its industry peers.
The Debt to FCF ratio of AZEK is 3.54, which is a good value as it means it would take AZEK, 3.54 years of fcf income to pay off all of its debts.
AZEK has a Debt to FCF ratio (3.54) which is in line with its industry peers.
AZEK has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
AZEK's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. AZEK outperforms 56.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 6.4 |
ROIC/WACC0.78
WACC10.3%
2.3 Liquidity
A Current Ratio of 2.17 indicates that AZEK has no problem at all paying its short term obligations.
AZEK has a Current ratio (2.17) which is comparable to the rest of the industry.
AZEK has a Quick Ratio of 1.14. This is a normal value and indicates that AZEK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.14, AZEK is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.00% 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 5.18%.
The Revenue has been growing by 12.66% on average over the past years. This is quite good.
EPS 1Y (TTM)60%
EPS 3Y6.98%
EPS 5YN/A
EPS Q2Q%-19.44%
Revenue 1Y (TTM)5.18%
Revenue growth 3Y6.93%
Revenue growth 5Y12.66%
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 17.89% on average per year.
AZEK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y18.76%
EPS Next 2Y18.45%
EPS Next 3Y17.89%
EPS Next 5YN/A
Revenue Next Year6.91%
Revenue Next 2Y7.65%
Revenue Next 3Y6.78%
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.
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
With a Price/Earnings ratio of 41.08, AZEK can be considered very expensive at the moment.
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.
AZEK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.55.
A Price/Forward Earnings ratio of 34.59 indicates a quite expensive valuation of AZEK.
Based on the Price/Forward Earnings ratio, AZEK is valued a bit more expensive than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, AZEK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.08 | ||
| Fwd PE | 34.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZEK is valued a bit more expensive than 74.36% of the companies in the same industry.
AZEK's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AZEK is more expensive than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.85 | ||
| EV/EBITDA | 21.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 17.89% in the coming years.
PEG (NY)2.19
PEG (5Y)N/A
EPS Next 2Y18.45%
EPS Next 3Y17.89%
5. Dividend
5.1 Amount
No dividends for AZEK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AZEK CO INC/THE
NYSE:AZEK (12/26/2024, 8:04:00 PM)
After market: 49.29 0 (0%)49.29
+0.03 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners105.48%
Inst Owner Change-2.1%
Ins Owners1.93%
Ins Owner Change0.06%
Market Cap7.05B
Analysts81.6
Price Target53.85 (9.25%)
Short Float %3.84%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)10.18%
Min EPS beat(2)5.87%
Max EPS beat(2)14.49%
EPS beat(4)3
Avg EPS beat(4)27.34%
Min EPS beat(4)-3.47%
Max EPS beat(4)92.46%
EPS beat(8)7
Avg EPS beat(8)24.94%
EPS beat(12)10
Avg EPS beat(12)18.4%
EPS beat(16)14
Avg EPS beat(16)17.66%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)0.71%
Max Revenue beat(2)7.44%
Revenue beat(4)3
Avg Revenue beat(4)1.95%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)7.44%
Revenue beat(8)7
Avg Revenue beat(8)2.6%
Revenue beat(12)10
Avg Revenue beat(12)2.49%
Revenue beat(16)14
Avg Revenue beat(16)2.89%
PT rev (1m)2.81%
PT rev (3m)6.14%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)1.9%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.08 | ||
| Fwd PE | 34.59 | ||
| P/S | 4.89 | ||
| P/FCF | 47.85 | ||
| P/OCF | 31.4 | ||
| P/B | 5.2 | ||
| P/tB | 30.06 | ||
| EV/EBITDA | 21.58 |
EPS(TTM)1.2
EY2.43%
EPS(NY)1.43
Fwd EY2.89%
FCF(TTM)1.03
FCFY2.09%
OCF(TTM)1.57
OCFY3.18%
SpS10.08
BVpS9.49
TBVpS1.64
PEG (NY)2.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 11.3% | ||
| ROCE | 10.97% | ||
| ROIC | 8.08% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 23.71% | ||
| OM | 14.85% | ||
| PM (TTM) | 10.64% | ||
| GM | 37.59% | ||
| FCFM | 10.22% |
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 | 0.38 | ||
| Debt/FCF | 3.54 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 59.78% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 65.43% | ||
| Profit Quality | 96.06% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 6.4 |
F-Score8
WACC10.3%
ROIC/WACC0.78
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)60%
EPS 3Y6.98%
EPS 5YN/A
EPS Q2Q%-19.44%
EPS Next Y18.76%
EPS Next 2Y18.45%
EPS Next 3Y17.89%
EPS Next 5YN/A
Revenue 1Y (TTM)5.18%
Revenue growth 3Y6.93%
Revenue growth 5Y12.66%
Sales Q2Q%-10.44%
Revenue Next Year6.91%
Revenue Next 2Y7.65%
Revenue Next 3Y6.78%
Revenue Next 5YN/A
EBIT growth 1Y72.54%
EBIT growth 3Y14.36%
EBIT growth 5Y28.71%
EBIT Next Year59.12%
EBIT Next 3Y24.11%
EBIT Next 5YN/A
FCF growth 1Y-46.23%
FCF growth 3Y65.33%
FCF growth 5Y35.8%
OCF growth 1Y-38.07%
OCF growth 3Y2.62%
OCF growth 5Y18.79%