AZEK Company Inc Class A
Find Ratings Reports
-1.45 |
-7.31%
AZEK COMPANY INC (THE)'s gross profit margin for the second quarter of its fiscal year 2022 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. AZEK COMPANY INC (THE) has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.64% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Net Sales ($mil) | 396.26 | 293.12 |
| EBITDA ($mil) | 81.89 | 62.07 |
| EBIT ($mil) | 52.85 | 36.82 |
| Net Income ($mil) | 35.82 | 22.66 |
| Balance Sheet | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Cash & Equiv. ($mil) | 25.81 | 151.32 |
| Total Assets ($mil) | 2319.48 | 1990.4 |
| Total Debt ($mil) | 505.28 | 475.95 |
| Equity ($mil) | 1493.03 | 1349.4 |
| Profitability | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Gross Profit Margin | 38.54 | 42.0 |
| EBITDA Margin | 20.66 | 21.17 |
| Operating Margin | 13.34 | 12.56 |
| Sales Turnover | 0.57 | 0.5 |
| Return on Assets | 4.86 | -4.2 |
| Return on Equity | 7.56 | -6.2 |
| Debt | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Current Ratio | 3.0 | 3.63 |
| Debt/Capital | 0.25 | 0.26 |
| Interest Expense | 0.0 | 6.97 |
| Interest Coverage | 0.0 | 5.29 |
| Share Data | Q2 FY22 | Q2 FY21 |
|---|---|---|
| Shares outstanding (mil) | 155.11 | 154.74 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.23 | 0.14 |
| Book value / share | 9.63 | 8.72 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2201429.0 | 1609791.0 |
SELL. The current P/E ratio indicates a significant premium compared to an average of 10.99 for the Wood Product Manufacturing subsector and a premium compared to the S&P 500 average of 19.86. Conducting a second comparison, its price-to-book ratio of 1.94 indicates a significant discount versus the S&P 500 average of 3.81 and a discount versus the subsector average of 3.35. The current price-to-sales ratio is below the S&P 500 average, but above the subsector average. The valuation analysis reveals that, AZEK COMPANY INC (THE) seems to be trading at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AZEK 25.60 | Peers 10.99 | AZEK 21.72 | Peers 9.06 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AZEK is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AZEK is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AZEK 14.16 | Peers 17.84 | AZEK 0.28 | Peers 0.37 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. AZEK is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AZEK trades at a discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| AZEK 1.94 | Peers 3.35 | AZEK 225.86 | Peers 126.08 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AZEK is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AZEK is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| AZEK 2.18 | Peers 2.10 | AZEK 33.88 | Peers 76.20 | |||||||||||||||||||||
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Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AZEK is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AZEK significantly trails its peers on the basis of sales growth. |
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