Azek Company Intrinsic Value – AZEK Company’s Debt Load Surges in 2023, Indicating Extensive Use of Debt.
March 20, 2023

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AZEK ($NYSE:AZEK) Company has seen its debt load surge in 2023, indicating extensive use of debt. The rise in AZEK’s debt load suggests that the company has been heavily reliant on borrowing to fund its operations. This reliance on debt can be beneficial in the short-term in the form of lower interest payments and more flexible repayment options, but it can also lead to serious financial strain in the long-term.
If AZEK is unable to pay back its loans, it may face significant penalties or even bankruptcy. As such, it is important for the company to manage its debt load carefully to ensure its long-term financial health.
Price History
On Wednesday, AZEK COMPANY stock opened at $22.2 and closed at $22.0, down by 3.1% from the previous closing price of 22.7, indicating that its debt load is increasing significantly. This news has been met with mostly positive media coverage, as the company is seen as one of the most promising new businesses in the industry. AZEK COMPANY has seen its debt rising steadily to fund its expansion and development plans. The company is committed to providing innovative products and services for the market, and in doing so has taken on a large amount of debt to finance its operations. This surge in debt has generated both positive and negative speculation from investors, with some expressing concern about the company’s ability to pay off its debt in the future.
Despite this, AZEK COMPANY’s management team remains confident that the company has the resources and financial stability necessary to meet its obligations. The company believes that its current debt load is manageable and will enable it to continue growing its business without any major problems. Thus, AZEK COMPANY’s debt load is seen as a sign of progress and a necessary step in its journey to success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Azek Company. More…
| Total Revenues | Net Income | Net Margin |
| 1.31k | 32.68 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Azek Company. More…
| Operations | Investing | Financing |
| 142.86 | -153.83 | 31.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Azek Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.35k | 935.93 | 9.35 |
Key Ratios Snapshot
Some of the financial key ratios for Azek Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.8% | 3.8% | 5.4% |
| FCF Margin | ROE | ROA |
| 0.4% | 3.1% | 1.9% |
Analysis – Azek Company Intrinsic Value
At GoodWhale, we have conducted an analysis of AZEK COMPANY‘s financials. Our proprietary Valuation Line has arrived at an intrinsic value of around $38.2 for each AZEK COMPANY share. Right now, the stock is trading at only $22.0, which means it is undervalued by 42.3%. Clearly, there is a great opportunity for investors to take advantage of the discount and get a great return on their investment. More…
Peers
The AZEK Co Inc competes with Louisiana-Pacific Corp, Byggma ASA, and Masco Corp in the market for wood-based building products. These companies all produce similar products, but AZEK has a competitive advantage in terms of product quality and customer service.
– Louisiana-Pacific Corp ($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 has experienced a sharp increase in its debt load for 2023, a sign of its extensive use of debt. Although so far the media coverage of this event has mostly been positive, the stock price for AZEK dropped significantly on the same day. Investors should carefully monitor the debt situation at AZEK and evaluate its impact on the company’s financial health. Other factors such as cash flow, profits, and dividends should also be considered before making any investing decisions.
Additionally, investors should stay informed on the latest news and developments surrounding AZEK to have a more complete picture of the company’s performance.
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