Azek Company Stock Intrinsic Value – AZEK Company Reports Third Quarter Earnings for FY2023
August 11, 2023
🌥️Earnings Overview
For the third quarter of FY2023, AZEK COMPANY ($NYSE:AZEK) reported total revenue of USD 387.6 million, a decrease of 1.9% year over year. Net income, however, rose by 26.9%, reaching USD 34.9 million, compared to the same period in FY2022.
Price History
The company’s stock opened at $31.1 and closed at $31.3, a 0.8% decrease from its prior closing price of $31.5. This slight dip in their stock prices follows a strong performance in the first two quarters of FY2023, where their stock opened and closed at higher prices than this quarter. Overall, the company reported improved sales in the third quarter, with strong growth in products and services. The company also continued to invest in its research and development initiatives to enhance its product offerings and customer experience. Despite this significant progress, AZEK Company warned investors that it expects to face tougher competition in the near future as new players enter the market. The company’s management noted that they remain confident in their ability to succeed under changing market conditions, and that they will continue to focus on customer satisfaction and operational efficiency in order to be successful.
In addition, AZEK Company emphasized that they will continue to invest in research and development to ensure that they remain competitive in the market and can deliver the best products and services. 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 – Azek Company Stock Intrinsic Value
At GoodWhale, we have run the numbers on AZEK COMPANY and the results are in. Our proprietary Valuation Line determined the intrinsic value of each AZEK COMPANY share to be around $32.8. But take a look at the current price of AZEK COMPANY stock – it is only $31.3, representing an undervaluation of 4.6%. Taking this into account, we can confidently say that AZEK COMPANY stock is a fair price at the moment. More…
Peers
The AZEK Co Inc competes with Louisiana-Pacific Corp, Byggma ASA, and Masco Corp in the market for wood-based building products. These companies all produce similar products, but AZEK has a competitive advantage in terms of product quality and customer service.
– Louisiana-Pacific Corp ($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 a promising investment opportunity due to its third quarter performance in FY2023. Despite a slight decrease of 1.9% in total revenue, net income for the period increased by an impressive 26.9%, amounting to USD 34.9 million. This strong performance reflects AZEK’s profitability and highlights the potential of the company as an attractive investment. This robust growth suggests that AZEK may experience further gains in the coming quarters, making it a worthy consideration for investors.
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