AZEK Company (AZEK) AI Stock Analysis

• Market Cap: $7.82B
• Dividend Yield: N/A
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): 52.7
• Beta (1Y): 1.39
• Revenue Growth: 5.93%
• EPS Growth: 3.50%
• Country: US
• Employees: 2,000
• Sector: Industrials
• Sector Strength: 94
• Industry: Construction
• EPS (TTM): 0.45
• Shares Outstanding: 143,854,000
• 10 Day Avg. Volume: 5,882,916
• 30 Day Avg. Volume: 4,477,995
• PEG Ratio: -1.93
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -38.31
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 5.34
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $53.33
• Price Target Upside: -1.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $62.00 ▲(14.08%Upside)

AZEK's overall stock score of 79 reflects solid financial performance and positive earnings call insights, including growth potential from the merger with James Hardie. While valuation is a concern due to a high P/E ratio, the technical analysis supports a bullish trend. The primary strengths are financial health and strategic initiatives, but investors should be aware of valuation risks.

Positive Factors

Commercial Synergies

Management pointed to $500 million in commercial synergies, including $125 million in cost synergies, cross-sell opportunities across the contractor landscape, and shared wood conversion stories as key selling points.

Growth Potential

The combined company will increase its total addressable market in North America.

Strategic Acquisition

James Hardie announced it will acquire AZEK for $8.75 billion, or a 37% premium to Friday’s close.

Negative Factors

Analyst Downgrade

AZEK is downgraded to Peer Perform from Outperform following the announced acquisition by James Hardie.

Market Uncertainty

The ~20% decline in JHX's value is larger than anticipated and a number of investors have questioned whether the deal ultimately reaches the finish line.

Stock Valuation

The takeout price has clearly deteriorated and now implies a total per share value in the $51 range versus AZEK currently trading at $49.02.

AZEK Company Business Overview & Revenue Model

Company Description

The AZEK Company Inc. is a leading manufacturer of low-maintenance, sustainable, and stylish building products for residential, commercial, and industrial markets. Operating primarily in the United States, AZEK specializes in outdoor living products such as decking, railings, trim, and accessories, which are known for their durability, sustainability, and aesthetic appeal. The company is committed to innovation in materials science and sustainable practices, offering products that are often made from a significant proportion of recycled materials.

How the Company Makes Money

AZEK generates revenue through the sale of its comprehensive range of building products, primarily focusing on decking, railing, trim, and other outdoor living solutions. The company's revenue streams are primarily driven by sales to distributors and dealers who then sell to end-users, including homeowners, contractors, and builders. AZEK's strategic partnerships with leading distributors and its extensive network of independent dealers play a significant role in its market reach and sales effectiveness. Additionally, the company capitalizes on trends towards sustainable building practices and outdoor living enhancements, which drive demand for its innovative and environmentally friendly products.

AZEK Company Financial Statement Overview

Summary

AZEK Company exhibits a solid financial foundation with strong revenue growth, profitability, and efficient cash flow management. The balance sheet shows prudent leverage, and the company maintains a stable equity base. While there are some areas for potential improvement, such as ROE, AZEK's overall financial health is strong, supporting its growth trajectory in the construction industry.

Income Statement

AZEK Company's income statement shows a strong financial performance with consistent revenue growth over the years. The gross profit margin stands at 37.2% for TTM, indicating efficient cost management. The net profit margin has improved to 9.9% from previous years, showcasing enhanced profitability. However, the EBIT margin of 36.6% is skewed by high EBIT figures in TTM, warranting careful analysis. Overall, the company's income statement reflects robust growth and profitability trends.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.30, reflecting a conservative leverage strategy. The equity ratio of 63.2% emphasizes a strong equity base. However, the return on equity (ROE) is currently 10.4%, which suggests there is room for improvement in generating returns from shareholders' equity. Overall, AZEK's balance sheet is sound with manageable leverage and solid equity support.

Cash Flow

AZEK's cash flow statement is strong, with operating cash flow growing significantly to $316 million in TTM, indicating good cash generation from operations. The free cash flow growth rate is also positive, though it could be more robust. The operating cash flow to net income ratio is healthy at 2.1, demonstrating efficient conversion of income into cash. Overall, the cash flow performance is commendable, providing a solid liquidity position.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.52B	1.44B	1.37B	1.36B	1.18B	899.26M
Gross Profit	565.31M	541.79M	437.65M	409.32M	389.95M	296.05M
EBITDA	364.91M	378.82M	258.97M	236.81M	244.76M	40.45M
Net Income	150.88M	153.38M	62.36M	67.16M	88.86M	-122.23M
Balance Sheet
Total Assets	2.30B	2.17B	2.42B	2.38B	2.19B	1.93B
Cash, Cash Equivalents and Short-Term Investments	146.72M	164.03M	278.31M	120.82M	250.54M	215.01M
Total Debt	441.53M	441.15M	593.22M	590.88M	464.71M	473.89M
Total Liabilities	845.08M	810.85M	1.01B	938.65M	760.67M	627.97M
Stockholders Equity	1.45B	1.36B	1.41B	1.44B	1.43B	1.30B
Cash Flow
Free Cash Flow	207.93M	147.33M	274.00M	-66.60M	32.56M	2.77M
Operating Cash Flow	316.19M	224.48M	362.54M	105.83M	207.68M	98.36M
Investing Cash Flow	-131.89M	49.14M	-88.50M	-280.18M	-175.07M	-113.79M
Financing Cash Flow	-264.98M	-387.91M	-116.54M	44.62M	2.92M	124.50M

AZEK Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZEK, the sentiment is Positive. The current price of 54.35 is above the 20-day moving average (MA) of 53.30, above the 50-day MA of 51.38, and above the 200-day MA of 48.38, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 86.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZEK.

AZEK Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZEK	79 Outperform	$7.82B	52.67	10.62%	―	5.93%	3.50%
SSD	78 Outperform	$6.84B	21.37	18.10%	0.69%	1.38%	-3.80%
Sector *	71 Outperform	¥269.20B	13.84	8.47%	2.89%	6.33%	13.01%
FBIN	70 Outperform	$6.74B	16.47	18.62%	1.75%	-3.48%	4.55%
TREX	69 Neutral	$7.27B	37.11	23.07%	―	-9.10%	-21.50%
AAON	68 Neutral	$6.31B	41.37	19.85%	0.43%	8.24%	-11.66%
LPX	67 Neutral	$6.16B	15.67	24.41%	1.22%	8.09%	55.08%

AZEK Company Corporate Events

James Hardie Completes Acquisition of AZEK Company

On July 1, 2025, James Hardie Industries completed its acquisition of The AZEK Company, enhancing its position as a leading provider of exterior home and outdoor living solutions. This strategic move combines complementary offerings from both companies, significantly expanding James Hardie’s market reach and creating opportunities for commercial and cost synergies. As a result of the merger, AZEK’s stock ceased trading on the NYSE, and James Hardie’s ordinary shares are now listed on the NYSE. The merger is expected to accelerate revenue and EBITDA growth, drive robust cash flow, and support ongoing share repurchases.

The most recent analyst rating on (AZEK) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on AZEK Company stock, see the AZEK Stock Forecast page.

AZEK Company Stockholders Approve Merger with James Hardie

On June 27, 2025, AZEK Company Inc. held a special meeting where stockholders approved the proposed merger with James Hardie Industries plc. The merger, expected to close on July 1, 2025, will result in AZEK becoming an indirect wholly owned subsidiary of James Hardie. This strategic move is anticipated to enhance AZEK’s market position by combining resources with James Hardie, aiming to deliver greater value to customers through expanded offerings and innovation.

The most recent analyst rating on (AZEK) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on AZEK Company stock, see the AZEK Stock Forecast page.

AZEK Finalizes Sale of Scranton Products Business

On June 20, 2025, The AZEK Company Inc. finalized the sale of its Commercial Segment’s Scranton Products business to Sky Island Capital. This strategic move is expected to impact AZEK’s operational focus, potentially strengthening its position in the residential building materials market.

The most recent analyst rating on (AZEK) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on AZEK Company stock, see the AZEK Stock Forecast page.

AZEK Company Faces Legal Challenges Over Merger

On March 23, 2025, AZEK Company Inc. entered into a merger agreement with James Hardie Industries, where AZEK will become an indirect wholly owned subsidiary of James Hardie. The merger has faced legal challenges from stockholders alleging disclosure deficiencies in the proxy statement, but AZEK has made voluntary supplemental disclosures to mitigate delays and expenses, while denying any wrongdoing.

The most recent analyst rating on (AZEK) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on AZEK Company stock, see the AZEK Stock Forecast page.

AZEK Company Amends Executive Severance Plan Post-Merger

On June 3, 2025, The AZEK Company Inc. announced amendments to its Executive Severance Plan following a merger agreement with James Hardie Industries. These amendments provide enhanced benefits for executives in the event of a qualifying termination within 24 months of a change in control, including full or pro-rata annual cash incentives and accelerated vesting of equity awards.

The most recent analyst rating on (AZEK) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on AZEK Company stock, see the AZEK Stock Forecast page.

AZEK Company Merger with James Hardie Approved

On March 23, 2025, AZEK Company Inc. entered into a merger agreement with James Hardie Industries, with the merger set to make AZEK a wholly owned subsidiary of James Hardie. The merger’s completion was contingent upon the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which expired on June 2, 2025, allowing the merger to proceed.

The most recent analyst rating on (AZEK) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on AZEK Company stock, see the AZEK Stock Forecast page.

AZEK Company Amends Merger Agreement with James Hardie

On May 4, 2025, The AZEK Company Inc. amended its merger agreement with James Hardie Industries plc, impacting the treatment of company stock options. The amendment specifies that stock options held by former employees and non-employee board members, except certain designees, will be canceled for cash, while others will be converted to options for JHX shares. Additionally, on May 2, 2025, the company’s board approved cash retention awards for key executives, vesting upon the merger’s closing and six months thereafter, ensuring leadership stability during the transition.