The AZEK Company Inc. (AZEK), Discounted Cash Flow Valuation

L'entreprise Azek Company Inc. (Azek) Profile

US | Industrials | Construction | NYSE
49.11 -0.38 (-0.77%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
7.06B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
1.49B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
146.35M
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
145.38M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
0.99
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
44.43
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.00%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
3.65M
Open The opening trade price over the trading day.
49.58
Previous Close The last closing price.
49.49
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
1.86
1 day delta The range between the high and low prices over the past day.
48.97-49.58
52 weeks The range between the high and low prices over the past 52 weeks.
35.48-54.91

Total Valuation

The AZEK Company Inc. has a market cap or net worth of 7.06B. The enterprise value is 6.92B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
7.06B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
6.92B

Valuation Ratios

The trailing PE ratio is 48.08. The AZEK Company Inc.'s PEG ratio is -12.5.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
48.08
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
4.75
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
5.07
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
40.75
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
-12.5

Enterprise Valuation

The stock's EV/EBITDA ratio is 21.41, with a EV/FCF ratio of 39.91.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
4.65
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
21.41
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
27.19
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
39.91

Financial Efficiency

Return on equity (ROE) is 10.60% and return on invested capital (ROIC) is 21.65%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
10.60%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
6.73%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
21.65%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.66
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
3.63

Margins

Trailing 12 months gross margin is 37.32%, with operating and profit margins of 37.10% and 9.85%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
37.32%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
37.10%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
12.60%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
9.85%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
21.73%

Income Statement

In the last 12 months, The AZEK Company Inc. had revenue of 1.49B and earned 146.35M in profits. Earnings per share (EPS) was 0.99.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
1.49B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
554.69M
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
551.42M
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
187.29M
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
146.35M
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
323M
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
227M
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
0.99

Financial Position

The company has a trailing 12 months (ttm) current ratio of 2.56, with a ttm Debt / Equity ratio of 0.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
2.56
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
1.19
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
0.34

Dividends & Yields

This stock pays an annual dividend of 0, which amounts to a dividend yield of 0.00%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.00%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
2.08%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
2.45%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
0.00%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
0.00%

Balance Sheet

The company has 148.13M in cash and 3.3M in debt, giving a net cash position of 144.83M.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
148.13M
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
3.3M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
144.83M
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
1.39B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
9.68
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
291.67M

Cash Flow

In the last 12 months, operating cash flow of the company was 254.33M and capital expenditures -81.06M, giving a free cash flow of 173.27M.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
254.33M
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-81.06M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
173.27M
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
1.21

The AZEK Company Inc. News

Apr 17, 2025 - reuters.com
Investors seeks review of Australia's listing rules, say James Hardie-AZEK deal to hurt
A group of investors has called for a review of Australia's listing rules, claiming it was "unreasonable" that companies were allowed to issue a large amount of shares to fund their acquisitions without a shareholder vote....[read more]
Apr 15, 2025 - businesswire.com
The AZEK Company Inc. Announces Fiscal Second Quarter 2025 Earnings Release and Investor Conference Call on May 6, 2025
CHICAGO--(BUSINESS WIRE)--The AZEK Company Inc. (NYSE: AZEK) ("AZEK" or the “Company”), the industry-leading manufacturer of beautiful, low-maintenance and environmentally sustainable outdoor living products, including TimberTech® Decking and Railing, Versatex® and AZEK® Trim, and StruXure® pergolas, today announced that it will release its fiscal second quarter 2025 results after the market closes on Tuesday, May 6, 2025. That same day, the Company will hold a conference call to discuss the re....[read more]
Mar 28, 2025 - fool.com
Why Shares in This Housing Market Products Company Crashed This Week
Shares in fiber cement siding company James Hardie Industries (JHX 2.56%) declined by 15.8% in the week to Friday morning. There's no doubt why the move occurred; the announcement of an agreement to combine with outdoor decking company Azek (AZEK 1.93%) on Monday sent the shares sharply lower....[read more]
Mar 26, 2025 - businesswire.com
AZEK INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of AZEK Company Inc. - AZEK
NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of AZEK Company Inc. (NYSE: AZEK) to James Hardie Industries plc (NYSE: JHX). Under the terms of the proposed transaction, shareholders of AZEK will receive $26.45 in cash and 1.0340 ordinary shares of James Hardie for each share of AZEK that they own. KSF is seeking to determine whether this considera....[read more]
Mar 25, 2025 - zacks.com
The AZEK Company (AZEK) Upgraded to Buy: What Does It Mean for the Stock?
The AZEK Company (AZEK) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term....[read more]
Mar 25, 2025 - zacks.com
Are Construction Stocks Lagging AZEK (AZEK) This Year?
Here is how The AZEK Company (AZEK) and Babcock International Group PLC (BCKIY) have performed compared to their sector so far this year....[read more]
Mar 24, 2025 - prnewswire.com
ALERT: Rowley Law PLLC is Investigating Proposed Acquisition of The AZEK Company Inc.
NEW YORK , March 24, 2025 /PRNewswire/ -- Rowley Law PLLC is investigating potential securities law violations by The AZEK Company Inc. (NYSE: AZEK) and its board of directors concerning the proposed acquisition of the company by James Hardie Industries plc (NYSE: JHX). Stockholders will receive $26.45 and 1.0340 shares of James Hardie common stock for each share of The AZEK Company stock that they hold....[read more]
Mar 24, 2025 - invezz.com
Dow, S&P 500 rally on hopes of softer US tariff stance; Tesla and AZEK surge, tech stocks gain
Hopes that the US will avoid a full-scale trade war lifted stocks on Monday, following reports that President Donald Trump may postpone some of his planned tariffs. As of writing, the S&P 500 had gained 1.7%, the Dow Jones Industrial Average was up 1.4%, and the Nasdaq Composite surged 2.2%....[read more]
Mar 24, 2025 - zacks.com
James Hardie to Boost Market Expansion With the Acquisition of AZEK
JHX stock is set to benefit from its new acquisition, reflecting the expansion of market reach and product offerings. Read on to learn more about the buyout....[read more]
Mar 24, 2025 - globenewswire.com
AZEK Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Sale of The AZEK Company to James Hardie Industries
MONSEY, N.Y., March 24, 2025 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed sale of The AZEK Company, Inc. (NYSE: AZEK) (“AZEK”) to James Hardie Industries (“James Hardie”) for $26.45 in cash and 1.0340 ordinary shares of James Hardie to be listed on the New York Stock Exchange (NYSE) for each share of AZEK common stock....[read more]

The AZEK Company Inc. Details

Country US
City Chicago
Address 1330 West Fulton Street
Ticker Symbol AZEK
Exchange New York Stock Exchange
IPO Date Jun 12, 2020
CEO Mr. Jesse G. Singh
Sector Industrials
Industry Construction
Employees 2K

The AZEK Company Inc. Company Description

The AZEK Company Inc. engages in designing, manufacturing, and selling building products for residential, commercial, and industrial markets in the United States. It operates through two segments: Residential and Commercial. The Residential segment designs and manufactures engineered outdoor living products, which includes decking, railing, trim and moulding, and accessories under the TimberTech, AZEK Exteriors, VERSATEX, and ULTRALOX brand name. Its Commercial segment manufactures engineered polymer materials that is used in various industries, which includes outdoor, graphic displays and signage, educational, and recreational markets, as well as the food processing and chemical industries. This segment also offers bathroom partitions, shower and dressing stalls, lockers, and other storage solutions under the Aria, Eclipse, Hiny Hiders, TuffTec, and Duralife brand name to schools, parks, stadium arenas, industrial plants, and retail, recreational, and commercial facilities. The company was formerly known as CPG Newco LLC and changed its name to The AZEK Company Inc. in June 2020. The AZEK Company Inc. was incorporated in 2013 and is headquartered in Chicago, Illinois.

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