Azek Company Intrinsic Value – AZEK Company Reports Q1 Non-GAAP EPS of -$0.09, Revenue of $216.3M and Adjusted EBITDA of $15.1M.

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Azek Company Intrinsic Value – The AZEK ($NYSE:AZEK) Company is a leading manufacturer of building materials, including decking, railing, trim, and other outdoor living products. The company is publicly traded on the New York Stock Exchange under the ticker symbol AZEK. The company recently reported its Q1 financial results, which beat expectations. Non-GAAP EPS came in at -$0.09, beating expectations by $0.01. Revenue of $216.3M also beat estimates by $8.16M and Adjusted EBITDA came in at $15.1 million. The company’s revenues were driven by strong demand for its products, especially its core decking, railing and trim businesses.

Despite the challenging economic environment, the company saw a 4% increase in net sales compared to the same period last year. This was driven by growth in both existing and new customers. This improvement was primarily due to favorable product mix and cost efficiencies. Overall, the AZEK Company reported strong results in its Q1 financials, beating expectations on all metrics. This is a testament to the company’s ability to adapt to the changing market conditions and deliver innovative products that meet customer needs. Investors should keep a close eye on this company as it continues to grow and expand its business.

Stock Price

Their stock opened at $25.8 and closed at $25.9, down by 0.6% from prior closing price of 26.0. The company has reported that it is continuing to invest in its core categories and initiatives to drive long-term growth, including product innovation and marketing investments. AZEK Company remains committed to creating value for its shareholders by driving strong returns on capital and focusing on long-term growth initiatives. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Azek Company. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Azek Company. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Azek Company. More…

Key Ratios Snapshot

Some of the financial key ratios for Azek Company are shown below. More…

Analysis – Azek Company Intrinsic Value

GoodWhale recently conducted an analysis of AZEK COMPANY‘s wellbeing. Using our proprietary Valuation Line, the fair value of AZEK COMPANY shares was estimated to be around $39.8. This valuation is significantly higher than the current market price of $25.9, meaning the stock is undervalued by 34.9%. This implies that AZEK COMPANY could potentially be a great investment, as it is trading at a discount to its estimated fair value. GoodWhale’s analysis also highlighted potential opportunities for AZEK COMPANY to increase its value. We noted that the company has strong fundamentals, such as a solid balance sheet and strong cash flow, which could be further optimized to increase the value of the business. Furthermore, we identified potential areas of cost savings and revenue growth that could further boost the company’s valuation. Overall, GoodWhale believes that AZEK COMPANY is an attractive investment opportunity, as it is currently undervalued in the market and has potential for further value creation. We recommend investors consider taking advantage of this opportunity before the market catches up with our valuation. More…

Peers

The AZEK Co Inc competes with Louisiana-Pacific Corp, Byggma ASA, and Masco Corp in the market for wood-based building products. These companies all produce similar products, but AZEK has a competitive advantage in terms of product quality and customer service.

– Louisiana-Pacific Corp ($NYSE:LPX)

Louisiana-Pacific Corp is a publicly traded company with a market capitalization of $3.71 billion as of March 2022. The company has a return on equity of 63.05%. Louisiana-Pacific Corp is a leading manufacturer of building products and engineered wood products. The company’s products are used in a variety of applications, including residential construction, commercial construction, and industrial applications. Louisiana-Pacific Corp operates manufacturing facilities in the United States, Canada, and Chile.

– Byggma ASA ($LTS:0DVM)

Byggma ASA is a trusted provider of construction and building materials in Norway. The company has a market capitalization of 2.06 billion as of 2022 and a return on equity of 29.21%. Byggma ASA is committed to providing quality products and services to its customers, and its strong financial performance is a testament to its success. The company’s products and services are in high demand, and its customer base is growing. Byggma ASA is well-positioned to continue its growth and expansion in the Norwegian construction market.

– Masco Corp ($NYSE:MAS)

Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our products include faucets, cabinets, windows, doors, plumbing fixtures, architectural hardware, lumber and other building materials. We operate more than 60 manufacturing facilities in the United States, Canada, Europe and Asia. Our products are sold under a variety of brand names including Delta®, Hansgrohe®, Brizo®, Axor®, InSinkErator®, KraftMaid®, Merillat®, QualityCabinets®, Masco Cabinetry®, Kichler®, Simonswerk® and many other regional brands. Our products are distributed through a variety of channels including home centers, mass merchants, Showrooms, International distributors, OEMs and other specialty retailers.

Summary

AZEK Company reported their first quarter non-GAAP earnings per share at -$0.09, revenue at $216.3M, and adjusted EBITDA at $15.1M. This shows a decline in their earnings and revenue compared to the same period last year, which may be concerning for investors. Investors should consider AZEK’s strong liquidity position and healthy balance sheet when evaluating their long-term potential. Analysts suggest that the company’s long-term prospects remain positive, despite the short-term challenges.