Is Azek Stock a Good Investment?

Azek Investment Advice

AZEK

To provide specific investment advice or recommendations on Azek Company stock, we recommend investors consider the following general factors when evaluating Azek Company. This will help you to make an informed decision on whether to include Azek in one of your diversified portfolios:

Examine Azek's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Azek's leadership team and their track record. Good management can help Azek navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Building Products space and any emerging trends that could impact Azek's business and its evolving consumer preferences.
Compare Azek's performance and market position to its competitors. Analyze how Azek is positioned in terms of product offerings, innovation, and market share.
Check if Azek pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Azek's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Azek Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Azek Company is a good investment.

Sell

Buy

Strong Hold

Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Azek Company. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Azek is not overpriced, please confirm all Azek Company fundamentals, including its gross profit, book value per share, and the relationship between the price to earning and cash per share . Given that Azek Company has a number of shares shorted of 5.63 M, we suggest you to validate Azek Company market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Over hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Frail	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Azek Stock

Researching Azek's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The company had not issued any dividends in recent years.

To determine if Azek is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Azek's research are outlined below:

	Azek Company is unlikely to experience financial distress in the next 2 years
	Azek Company has a frail financial position based on the latest SEC disclosures
	Over 98.0% of the company shares are held by institutions such as insurance companies
	Latest headline from gurufocus.com: The AZEK Co Inc Shares Up 5.42 percent on Nov 25

Azek Quarterly Cost Of Revenue

218.48 Million

Azek uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Azek Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Azek's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of February 2024 Upcoming Quarterly Report	View
	2nd of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	26th of November 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	30th of September 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Azek's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Azek's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2023-02-08	2022-12-31	-0.1	-0.09	0.01	10
2022-02-03	2021-12-31	0.16	0.18	0.02	12
2022-05-10	2022-03-31	0.3	0.33	0.03	10
2021-08-12	2021-06-30	0.23	0.26	0.03	13
2020-08-13	2020-06-30	0.1	0.13	0.03	30
2022-08-04	2022-06-30	0.25	0.29	0.04	16
2021-11-18	2021-09-30	0.28	0.32	0.04	14
2021-02-11	2020-12-31	0.11	0.15	0.04	36

Know Azek's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Azek is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Azek Company backward and forwards among themselves. Azek's institutional investor refers to the entity that pools money to purchase Azek's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Adage Capital Partners Gp Llc	2024-06-30	2.5 M
Dimensional Fund Advisors, Inc.	2024-09-30	2.4 M
State Street Corp	2024-06-30	2.4 M
Geode Capital Management, Llc	2024-09-30	2.3 M
Amvescap Plc.	2024-06-30	2.3 M
American Century Companies Inc	2024-09-30	2.2 M
Mercer Global Advisors Inc.	2024-06-30	2.1 M
Loomis, Sayles & Company Lp	2024-06-30	1.9 M
Jpmorgan Chase & Co	2024-06-30	1.9 M
Vanguard Group Inc	2024-09-30	14.4 M
Wellington Management Company Llp	2024-06-30	10.6 M

Note, although Azek's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Azek's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 7.5 B.

Market Cap

3.63 Billion

Azek's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.15	0.15
Return On Capital Employed	0.11	0.11
Return On Assets	0.07	0.07
Return On Equity	0.11	0.12

The company has Profit Margin (PM) of 0.11 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.17 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.17.

Determining Azek's profitability involves analyzing its financial statements and using various financial metrics to determine if Azek is a good buy. For example, gross profit margin measures Azek's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Azek's profitability and make more informed investment decisions.

Evaluate Azek's management efficiency

Azek Company has return on total asset (ROA) of 0.0603 % which means that it generated a profit of $0.0603 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.116 %, meaning that it created $0.116 on every $100 dollars invested by stockholders. Azek's management efficiency ratios could be used to measure how well Azek manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is expected to rise to 0.15 this year. Return On Capital Employed is expected to rise to 0.11 this year. At this time, Azek's Liabilities And Stockholders Equity is quite stable compared to the past year. Non Current Liabilities Total is expected to rise to about 629.4 M this year, although the value of Total Current Liabilities will most likely fall to about 153.8 M.

	Last Reported	Projected for Next Year
Book Value Per Share	9.32	5.90
Tangible Book Value Per Share	1.61	1.69
Enterprise Value Over EBITDA	17.15	16.29
Price Book Value Ratio	5.02	5.54
Enterprise Value Multiple	17.15	16.29
Price Fair Value	5.02	5.54
Enterprise Value	6.7 B	4 B

Azek Company benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.

Beta

1.885

Basic technical analysis of Azek Stock

As of the 28th of November, Azek shows the risk adjusted performance of 0.1329, and Mean Deviation of 1.38. Azek Company technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Azek's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Azek insiders, such as employees or executives, is commonly permitted as long as it does not rely on Azek's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Azek insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Rakesh Mohan over three weeks ago Acquisition by Rakesh Mohan of 11323 shares of Azek subject to Rule 16b-3
		Jesse Singh over a month ago Disposition of 13000 shares by Jesse Singh of Azek at 37.23 subject to Rule 16b-3
		Gary Hendrickson over two months ago Acquisition by Gary Hendrickson of 782 shares of Azek at 41.8 subject to Rule 16b-3
		Jonathan Skelly over three months ago Disposition of 19022 shares by Jonathan Skelly of Azek at 23.0 subject to Rule 16b-3
		Peter Clifford over three months ago Disposition of 2412 shares by Peter Clifford of Azek at 42.17 subject to Rule 16b-3
		Jonathan Skelly over three months ago Disposition of 160 shares by Jonathan Skelly of Azek at 41.3 subject to Rule 16b-3
		Gary Hendrickson over three months ago Acquisition by Gary Hendrickson of 753 shares of Azek at 47.06 subject to Rule 16b-3
		Gary Hendrickson over three months ago Acquisition by Gary Hendrickson of 679 shares of Azek at 45.14 subject to Rule 16b-3
		Vernon Nagel over three months ago Acquisition by Vernon Nagel of 610 shares of Azek at 45.14 subject to Rule 16b-3
		Vernon Nagel over six months ago Acquisition by Vernon Nagel of 3121 shares of Azek subject to Rule 16b-3
		Michelle Kasson over six months ago Acquisition by Michelle Kasson of 106450 shares of Azek at 23.0 subject to Rule 16b-3
		Michelle Kasson over six months ago Disposition of 94431 shares by Michelle Kasson of Azek at 49.47 subject to Rule 16b-3

Azek's Outstanding Corporate Bonds

Azek issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Azek Company uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Azek bonds can be classified according to their maturity, which is the date when Azek Company has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	MPLX LP 52 Corp Bond US55336VAL45	View

View All Azek Corporate Bonds

Understand Azek's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Azek's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1329
	Market Risk Adjusted Performance	0.3037
	Mean Deviation	1.38
	Semi Deviation	1.45
	Downside Deviation	1.75
	Coefficient Of Variation	601.41
	Standard Deviation	1.8
	Variance	3.22
	Information Ratio	0.0936
	Jensen Alpha	0.1702
	Total Risk Alpha	0.0057
	Sortino Ratio	0.0962
	Treynor Ratio	0.2937
	Maximum Drawdown	8.77
	Value At Risk	(2.33)
	Potential Upside	3.48
	Downside Variance	3.06
	Semi Variance	2.11
	Expected Short fall	(1.48)
	Skewness	(0.04)
	Kurtosis	0.4084

	Risk Adjusted Performance	0.1329
	Market Risk Adjusted Performance	0.3037
	Mean Deviation	1.38
	Semi Deviation	1.45
	Downside Deviation	1.75
	Coefficient Of Variation	601.41
	Standard Deviation	1.8
	Variance	3.22
	Information Ratio	0.0936
	Jensen Alpha	0.1702
	Total Risk Alpha	0.0057
	Sortino Ratio	0.0962
	Treynor Ratio	0.2937
	Maximum Drawdown	8.77
	Value At Risk	(2.33)
	Potential Upside	3.48
	Downside Variance	3.06
	Semi Variance	2.11
	Expected Short fall	(1.48)
	Skewness	(0.04)
	Kurtosis	0.4084

Consider Azek's intraday indicators

Azek intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Azek stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Daily Balance Of Power	(9,223,372,036,855)
	Rate Of Daily Change	1.0
	Day Median Price	52.26
	Day Typical Price	52.26
	Price Action Indicator	(0.07)
	Period Momentum Indicator	(0.15)
	Relative Strength Index	61.31

Azek Corporate Filings

10K	20th of November 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance	View Verify
8K	19th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
13A	12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify
13A	8th of November 2024 An amended filing to the original Schedule 13G	View Verify

Azek time-series forecasting models is one of many Azek's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Azek's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Azek Stock media impact

Far too much social signal, news, headlines, and media speculation about Azek that are available to investors today. That information is available publicly through Azek media outlets and privately through word of mouth or via Azek internal channels. However, regardless of the origin, that massive amount of Azek data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Azek news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Azek relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Azek's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Azek alpha.

Azek Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Azek can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Azek Company Historical Investor Sentiment

Investor biases related to Azek's public news can be used to forecast risks associated with an investment in Azek. The trend in average sentiment can be used to explain how an investor holding Azek can time the market purely based on public headlines and social activities around Azek Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Azek's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Azek and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Azek news discussions. The higher the estimate score, the more favorable the investor's outlook on Azek.

Azek Corporate Management

Gary Hendrickson	Independent Non-Executive Chairman of the Board	Profile
Scott Winter	President - Commercial Segment	Profile
Vernon Nagel	Independent Director	Profile
Brian Klos	Independent Director	Profile
Bobby Gentile	Senior Vice President - Operations	Profile
Howard Heckes	Independent Director	Profile
Bennett Rosenthal	Independent Director	Profile

Already Invested in Azek Company?

The danger of trading Azek Company is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Azek is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Azek. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Azek Company is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Azek Company is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Azek Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Azek Company Stock. Highlighted below are key reports to facilitate an investment decision about Azek Company Stock: