Azek Co Inc.

Industrials
Plastic Products
www.azekco.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.12B
PE 49
Debt $442.20M
Cash $148.13M
EV $7.42B
FCF $173.27M

Earnings

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Sales & Net Margins

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Earnings	$145.78M
EBIT	$196.73M
ROE	11%
ROA	9%
FCF	$173.27M
Equity	$1.39B
Growth Stability	100%
PE	48.86
PEG	2.78
PB	5.13
P/FCF	41.11
P/S	4.79
Price/Cash	0.02
Debt/Equity	0.32
Debt/FCF	2.55
Net Margins	6%
Gross Margins	37%
Op. Margins	13%
Earnings CAGR	4%
Sales Growth YoY	19%
Sales Growth QoQ	-18%
Sales CAGR	19%
FCF CAGR	24%
Equity CAGR	20%
Earnings Stability	-0.35
Earnings Growth YoY	-30%
Earnings Growth QoQ	-36%

Earnings CAGR 5Y	18%
Sales CAGR 5Y	12%
FCF CAGR 5Y	61%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	4%
Sales CAGR 3Y	4%
FCF CAGR 3Y	136%
Equity CAGR 3Y	-3%
Market Cap	$7.12B
Revenue	$1.49B
Assets	$2.17B
Total Debt	$442.20M
Cash	$148.13M
Shares Outstanding	143.35M
EV	7.42B
Earnings Score	6%
Moat Score	88%
Safety Score	93%
Final Score	62%
Working Capital	291.67M
Current Ratio	2.56
Gross Profit	$553.91M
Shares Growth 3y	-3%
Equity Growth QoQ	2%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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The AZEK Co Inc is a designer and manufacturer of beautiful, low maintenance and environmentally sustainable products focused on the fast-growing Outdoor Living market. Its portfolio of products includes decks, rail, trim, wood and wood-look siding, porches, pavers, outdoor furniture, outdoor cabinetry, and outdoor lighting. The company operates in two segments namely Residential and Commercial. It generates maximum revenue from the Residential segment. The company's brand includes TimberTech; AZEK; Versatex and Ultralox.

SEC Filings

Direct access to Azek Co Inc. (AZEK) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Azek Co Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Azek Co Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 4%

Stability -35%

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Azek Co Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Azek Co Inc..

Years

Calculation mode

= $9.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$173M	$215M	$267M	$332M	$412M	$511M	$635M	$788M	$979M	$1.2B	$1.5B	$15B
DCF		$196M	$221M	$249M	$281M	$317M	$358M	$404M	$457M	$515M	$582M	$5.8B
Value	$9.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	1%	-3%	-14%	8%	6%	5%	11%	6%
ROA	-	3%	-1%	6%	5%	6%	10%	9%
ROE	-	-4%	-9%	7%	5%	5%	11%	11%

Bad Net Margins (6.35%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	35.52	168.83	14.36	-9.31	2.19	3.01	2.55
Debt over Equity	-	2.31	0.36	0.33	0.42	0.42	0.33	0.32
Growth Stability	-	-	-	-	-	100%	100%	100%

Neutral Debt/FCF ratio (2.55)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.32)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	16%	13%	31%	15%	1%	5%	12%
Earnings YoY growth	-	-399%	505%	-176%	-19%	-10%	126%	18%
Equity YoY growth	-	-3%	166%	9%	1%	-1%	-5%	7%
FCF YoY growth	-	30%	-91%	1K%	-300%	-521%	-46%	61%