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%)
AZEK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. AZEK has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, AZEK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AZEK was profitable.
AZEK had a positive operating cash flow in the past year.
AZEK had positive earnings in 4 of the past 5 years.
In the past 5 years AZEK always reported a positive cash flow from operatings.
1.2 Ratios
AZEK has a Return On Assets of 6.56%. This is comparable to the rest of the industry: AZEK outperforms 54.76% of its industry peers.
With a Return On Equity value of 10.38%, AZEK perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
With a Return On Invested Capital value of 8.35%, AZEK perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AZEK is significantly below the industry average of 12.76%.
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
The Profit Margin of AZEK (9.92%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AZEK has grown nicely.
AZEK has a Operating Margin of 15.45%. This is comparable 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.
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
AZEK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AZEK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AZEK has more shares outstanding
AZEK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.82 indicates that AZEK is not in any danger for bankruptcy at the moment.
The Altman-Z score of AZEK (6.82) is better than 80.95% of its industry peers.
AZEK has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as AZEK would need 2.56 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.56, AZEK is doing good in the industry, outperforming 73.81% of the companies in the same industry.
AZEK has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AZEK (0.36) is better 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.
The Current ratio of AZEK (2.45) is better than 64.29% 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.
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.
The Earnings Per Share has been growing slightly by 6.98% on average over the past years.
Looking at the last year, AZEK shows a small growth in Revenue. The Revenue has grown by 5.92% in the last year.
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
The Earnings Per Share is expected to grow by 18.01% on average over the next years. This is quite good.
AZEK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.89% yearly.
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.
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.
80.95% of the companies in the same industry are cheaper than AZEK, based on the Price/Earnings ratio.
AZEK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 32.66 indicates a quite expensive valuation of AZEK.
Based on the Price/Forward Earnings ratio, AZEK is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, AZEK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.86 | ||
| Fwd PE | 32.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZEK is valued a bit more expensive than 76.19% of the companies in the same industry.
AZEK's Price/Free Cash Flow is on the same level as the industry average.
| 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
AZEK does not give a dividend.
| 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-5.28%
Ins Owners1.64%
Ins Owner Change-4.91%
Market Cap7.82B
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
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 | 6.82 |
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%