The AZEK Company Inc.
The AZEK Company Inc. Fundamental Analysis
The AZEK Company Inc. (AZEK) shows weak financial fundamentals with a PE ratio of 107.97, profit margin of 9.82%, and ROE of 5.10%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 5.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AZEK's fundamental strength across five key dimensions:
Efficiency Score
WeakAZEK struggles to generate sufficient returns from assets.
Valuation Score
WeakAZEK trades at a premium to fair value.
Growth Score
ModerateAZEK shows steady but slowing expansion.
Financial Health Score
ExcellentAZEK maintains a strong and stable balance sheet.
Profitability Score
WeakAZEK struggles to sustain strong margins.
Key Financial Metrics
Is AZEK Expensive or Cheap?
P/E Ratio
AZEK trades at 107.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AZEK's PEG of 26.99 indicates potential overvaluation.
Price to Book
The market values The AZEK Company Inc. at 5.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 42.93 times EBITDA. This signals the market has high growth expectations.
How Well Does AZEK Make Money?
Net Profit Margin
For every $100 in sales, The AZEK Company Inc. keeps $9.82 as profit after all expenses.
Operating Margin
Core operations generate 14.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.10 in profit for every $100 of shareholder equity.
ROA
The AZEK Company Inc. generates $3.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The AZEK Company Inc. generates limited operating cash flow of $60.62M, signaling weaker underlying cash strength.
Free Cash Flow
The AZEK Company Inc. generates weak or negative free cash flow of $-7.38M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.05 in free cash annually.
FCF Yield
AZEK converts -0.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
107.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
26.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AZEK Stacks Against Its Sector Peers
| Metric | AZEK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 107.97 | 26.45 | Worse (Expensive) |
| ROE | 5.10% | 1263.00% | Weak |
| Net Margin | 9.82% | -41655.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 2.45 | 10.40 | Strong Liquidity |
| ROA | 3.15% | -1502190.00% (disorted) | Weak |
AZEK outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The AZEK Company Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
877.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
142.27%
Industry Style: Cyclical, Value, Infrastructure
High Growth