AZEK CO INC/THE (AZEK) Fundamental Analysis & Valuation

NYSE:AZEK • US05478C1053

Current stock price

54.35 USD
-0.51 (-0.93%)
At close:
54.35 USD
0 (0%)
After Hours:

This AZEK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AZEK Profitability Analysis

1.1 Basic Checks

  • AZEK had positive earnings in the past year.
  • AZEK had a positive operating cash flow in the past year.
  • 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.
AZEK Yearly Net Income VS EBIT VS OCF VS FCFAZEK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

  • AZEK's Return On Assets of 6.56% is in line compared to the rest of the industry. AZEK outperforms 54.76% of its industry peers.
  • AZEK's Return On Equity of 10.38% is in line compared to the rest of the industry. AZEK outperforms 45.24% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for AZEK is significantly below the industry average of 11.86%.
  • 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 RankSector 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
AZEK Yearly ROA, ROE, ROICAZEK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

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.
  • Looking at the Operating Margin, with a value of 15.45%, AZEK is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AZEK has grown nicely.
  • AZEK's Gross Margin of 37.19% is fine compared to the rest of the industry. AZEK outperforms 61.90% of its industry peers.
  • In the last couple of years the Gross Margin of AZEK has grown nicely.
Industry RankSector 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%
AZEK Yearly Profit, Operating, Gross MarginsAZEK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. AZEK Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AZEK is destroying value.
  • AZEK has less shares outstanding than it did 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.
AZEK Yearly Shares OutstandingAZEK Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
AZEK Yearly Total Debt VS Total AssetsAZEK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 6.82 indicates that AZEK is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.82, AZEK belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
  • 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.
  • 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.
  • A Debt/Equity ratio of 0.36 indicates that AZEK is not too dependend on debt financing.
  • The Debt to Equity ratio of AZEK (0.36) is better than 61.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 2.56
Altman-Z 6.82
ROIC/WACC0.82
WACC10.14%
AZEK Yearly LT Debt VS Equity VS FCFAZEK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

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.
  • 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 Quick ratio of 1.47. This is in the better half of the industry: AZEK outperforms 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 2.45
Quick Ratio 1.47
AZEK Yearly Current Assets VS Current LiabilitesAZEK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AZEK Growth Analysis

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.
  • 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.
  • The Revenue is expected to grow by 7.89% on average over the next years.
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.
AZEK Yearly Revenue VS EstimatesAZEK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
AZEK Yearly EPS VS EstimatesAZEK Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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Find the best growth stocksShow best growing peers

1

4. AZEK Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 40.86, which means the current valuation is very expensive for AZEK.
  • 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.
  • The average S&P500 Price/Earnings ratio is at 27.35. AZEK is valued slightly more expensive when compared to this.
  • Based on the Price/Forward Earnings ratio of 32.66, the valuation of AZEK can be described as expensive.
  • 76.19% of the companies in the same industry are cheaper than AZEK, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of AZEK to the average of the S&P500 Index (22.23), we can say AZEK is valued slightly more expensively.
Industry RankSector Rank
PE 40.86
Fwd PE 32.66
AZEK Price Earnings VS Forward Price EarningsAZEK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AZEK is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
  • AZEK's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 37.6
EV/EBITDA 22.4
AZEK Per share dataAZEK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AZEK Dividend Analysis

5.1 Amount

  • AZEK does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

AZEK Fundamentals: All Metrics, Ratios and Statistics

AZEK CO INC/THE

NYSE:AZEK (6/30/2025, 8:04:00 PM)

After market: 54.35 0 (0%)

54.35

-0.51 (-0.93%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)05-06
Earnings (Next)08-05
Inst Owners99.39%
Inst Owner Change0%
Ins Owners1.64%
Ins Owner Change0%
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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for AZEK stock?

ChartMill assigns a fundamental rating of 5 / 10 to AZEK.


What is the valuation status of AZEK CO INC/THE (AZEK) stock?

ChartMill assigns a valuation rating of 1 / 10 to AZEK CO INC/THE (AZEK). This can be considered as Overvalued.


Can you provide the profitability details for AZEK CO INC/THE?

AZEK CO INC/THE (AZEK) has a profitability rating of 6 / 10.


Can you provide the expected EPS growth for AZEK stock?

The Earnings per Share (EPS) of AZEK CO INC/THE (AZEK) is expected to grow by 19.01% in the next year.