AZEK COMPANY Reports Third Quarter FY2023 Earnings Results on August 8 2023
August 14, 2023
🌥️Earnings Overview
On August 8 2023, AZEK COMPANY ($NYSE:AZEK) released its earnings results for the third quarter of FY2023 (ending June 30 2023). Total revenue for the quarter totaled USD 387.6 million, a 1.9% decrease year over year. Despite the lower revenues, net income for the quarter increased by 26.9%, reaching USD 34.9 million.
Market Price
The company’s stock opened at $31.1 and closed at $31.3, down 0.8% from the prior closing price of $31.5. This marks a slight decrease in the company’s market value, despite the encouraging second quarter results reported by AZEK COMPANY in June. The increase in revenues was attributed to strong sales of AZEK products in both domestic and global markets. Overall, AZEK COMPANY reported strong results for the third quarter of FY2023, despite a slight decrease in their stock price on Tuesday. The company’s strong revenues and net income were driven by expanding sales of their products, both domestically and internationally.
Additionally, their cash flows from operations demonstrated an impressive growth rate, further indicating their financial health. With such positive results, AZEK COMPANY is well-positioned to continue its success in the upcoming quarters. 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 |
| 1.29k | 20.54 | 1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Azek Company. More…
| Operations | Investing | Financing |
| 270.18 | -108.41 | -76.79 |
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 |
| 2.36k | 921.05 | 9.62 |
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 |
| 14.8% | 5.4% | 5.4% |
| FCF Margin | ROE | ROA |
| 14.2% | 3.0% | 1.9% |
Analysis
At GoodWhale, we have conducted an in-depth analysis of AZEK COMPANY’s fundamentals. According to our Star Chart, AZEK COMPANY has a high health score of 8/10, implying that it has the capacity to pay off debt and fund future operations. While it is strong in assets, its performance in terms of growth, profitability and dividend is classified as medium. Based on this assessment, we have concluded that AZEK COMPANY is a type of company that has achieved moderate revenue or earnings growth, which we classify as a “rhino”. Given this business situation, we believe that investors looking for steady, moderate growth may find AZEK COMPANY to be an attractive option. Investors looking for rapid growth may want to opt for companies with higher growth scores, while those seeking high dividend payouts may want to look elsewhere. Overall, AZEK COMPANY presents a compelling case for those who value long-term moderate growth potential. 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
Investors may find AZEK COMPANY an attractive option for FY2023 based on its reported third quarter results. Total revenue decreased by 1.9% year-over-year, but the company was able to increase net income by 26.9%. This suggests that AZEK COMPANY is able to effectively manage expenses in order to maximize profitability. Finally, the company has continued to make strategic investments in research and development and add new products, which could drive future growth.
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