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
- AZEK has a Return On Assets (6.56%) which is in line with its industry peers.
- The Return On Equity of AZEK (10.38%) is comparable to the rest of the industry.
- 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.
- AZEK had an Average Return On Invested Capital over the past 3 years of 5.62%. This is significantly below the industry average of 12.63%.
- 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
- With a Profit Margin value of 9.92%, AZEK perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of AZEK has grown nicely.
- AZEK has a Operating Margin (15.45%) which is comparable to the rest of the industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AZEK is destroying value.
- Compared to 1 year ago, AZEK has less shares outstanding
- 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.
- With an excellent Altman-Z score value of 6.82, AZEK belongs to the best 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.
- Looking at the Debt to FCF ratio, with a value of 2.56, AZEK is in the better half of 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.
- AZEK has a better Debt to Equity ratio (0.36) 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.
- 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.
- 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
- AZEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.65%, which is quite good.
- The Earnings Per Share has been growing slightly by 6.98% on average over the past years.
- The Revenue has been growing slightly by 5.92% in the past 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.
- 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
- 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
- A Price/Earnings ratio of 40.86 indicates a quite expensive valuation of AZEK.
- Compared to the rest of the industry, the Price/Earnings ratio of AZEK indicates a rather expensive valuation: AZEK more expensive than 80.95% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of AZEK to the average of the S&P500 Index (27.54), we can say AZEK is valued slightly more expensively.
- The Price/Forward Earnings ratio is 32.66, which means the current valuation is very expensive for 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.
- AZEK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.31.
| 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 ratio is in line with 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.
- The decent profitability rating of AZEK 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
- 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)05-06 2025-05-06/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners99.39%
Inst Owner Change-0.05%
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 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.
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.
How profitable is AZEK CO INC/THE (AZEK) stock?
AZEK CO INC/THE (AZEK) has a profitability rating of 6 / 10.
How financially healthy is AZEK CO INC/THE?
The financial health rating of AZEK CO INC/THE (AZEK) is 7 / 10.
What is the earnings growth outlook for AZEK CO INC/THE?
The Earnings per Share (EPS) of AZEK CO INC/THE (AZEK) is expected to grow by 19.01% in the next year.