NYSE:AZEK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

The AZEK Company Inc. engages in manufacturing and selling building products for residential, commercial, and industrial markets in the United States. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has AZEK's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AZEK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.2%

AZEK

-4.4%

US Building

-5.3%

US Market


1 Year Return

n/a

AZEK

5.4%

US Building

10.4%

US Market

Return vs Industry: Insufficient data to determine how AZEK performed against the US Building industry.

Return vs Market: Insufficient data to determine how AZEK performed against the US Market.


Shareholder returns

AZEKIndustryMarket
7 Day-10.2%-4.4%-5.3%
30 Day-4.6%0.4%-2.1%
90 Day-2.0%8.0%1.7%
1 Yearn/a12.3%5.4%12.9%10.4%
3 Yearn/a32.0%21.1%34.3%25.4%
5 Yearn/a75.7%50.1%73.7%54.3%

Price Volatility Vs. Market

How volatile is AZEK's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AZEK undervalued compared to its fair value and its price relative to the market?

4.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AZEK ($33.44) is trading above our estimate of fair value ($19.19)

Significantly Below Fair Value: AZEK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AZEK is unprofitable, so we can't compare its PE Ratio to the US Building industry average.

PE vs Market: AZEK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AZEK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AZEK is overvalued based on its PB Ratio (4.1x) compared to the US Building industry average (2.5x).


Next Steps

Future Growth

How is AZEK forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

124.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZEK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: AZEK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AZEK's is expected to become profitable in the next 3 years.

Revenue vs Market: AZEK's revenue (9.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: AZEK's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AZEK's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

  • Explore growth companies in the Capital Goods industry.

Past Performance

How has AZEK performed over the past 5 years?

-336.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AZEK is currently unprofitable.

Growing Profit Margin: AZEK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AZEK's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare AZEK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AZEK is unprofitable, making it difficult to compare its past year earnings growth to the Building industry (2.7%).


Return on Equity

High ROE: AZEK has a negative Return on Equity (-4.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is AZEK's financial position?


Financial Position Analysis

Short Term Liabilities: AZEK's short term assets ($436.5M) exceed its short term liabilities ($107.6M).

Long Term Liabilities: AZEK's short term assets ($436.5M) do not cover its long term liabilities ($553.2M).


Debt to Equity History and Analysis

Debt Level: AZEK's debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AZEK's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AZEK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AZEK is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 50.7% per year.


Next Steps

Dividend

What is AZEK current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AZEK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AZEK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZEK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZEK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AZEK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Jesse Singh (54 yo)

no data

Tenure

US$2,894,014

Compensation

Mr. Jesse G. Singh serves as the Chief Executive Officer and President at The AZEK Company Inc. (formerly known as CPG Newco LLC) and has been its Director since joining in July 2016. Mr. Singh has been th ...


CEO Compensation Analysis

Compensation vs Market: Jesse's total compensation ($USD2.89M) is below average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: Jesse's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jesse Singh
CEO, President & Directorno dataUS$2.89m1.53%
$ 79.4m
Ralph Nicoletti
Senior VP & CFOno dataUS$2.77m0.27%
$ 14.0m
Jonathan Skelly
Senior Vice President of Strategy & Executionno dataUS$801.44k0.17%
$ 8.9m
Bobby Gentile
Senior Vice President of Operationsno datano data0.15%
$ 7.8m
Gregory Jorgensen
VP & Chief Accounting Officerno datano datano data
Mike Kuehn
Vice President Information Technology7.08yrsno datano data
Michelle Kasson
Chief Information Officer0.83yrno datano data
Paul Kardish
Senior VP & Chief Legal Officerno datano data0.10%
$ 5.4m
Jeanine Gaffke
Chief Marketing Officerno datano data0.13%
$ 6.9m
Dennis Kitchen
Senior VP & Chief HR Officerno datano data0.15%
$ 7.9m
Scott Van Winter
President of Commercial Segment3.75yrsno data0.27%
$ 13.9m
Jose Ochoa
President of Residential Segmentno datano data0.38%
$ 19.8m

3.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: AZEK's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jesse Singh
CEO, President & Directorno dataUS$2.89m1.53%
$ 79.4m
Sallie Bailey
Independent Director1.92yrsUS$226.13k0.037%
$ 1.9m
Brian Spaly
Independent Director0.17yrno data0.029%
$ 1.5m
Blake Sumler
Independent Director0.75yrno datano data
James Hirshorn
Independent Director7.75yrsno datano data
Ronald Pace
Independent Director5.83yrsUS$50.00k0.026%
$ 1.3m
Bennett Rosenthal
Independent Director7.75yrsno datano data
Gary Hendrickson
Independent Chairman of the Board3.42yrsUS$100.00k0.19%
$ 9.9m
Brian Klos
Independent Director2.67yrsno datano data
Ashfaq Qadri
Independent Director1.67yrsno datano data
Russell Hammond
Independent Director7.75yrsno datano data

3.4yrs

Average Tenure

54yo

Average Age

Experienced Board: AZEK's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AZEK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: AZEK only recently listed within the past 12 months.


Top Shareholders

Company Information

The AZEK Company Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The AZEK Company Inc.
  • Ticker: AZEK
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$5.171b
  • Shares outstanding: 154.64m
  • Website: https://azekco.com

Number of Employees


Location

  • The AZEK Company Inc.
  • 1330 West Fulton Street
  • Suite 350
  • Chicago
  • Illinois
  • 60607
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZEKNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2020

Biography

The AZEK Company Inc. engages in manufacturing and selling building products for residential, commercial, and industrial markets in the United States. Its products include trims, decks, porches, moldings, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/01 00:10
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.