The AZEK Company Shares Up 2% on Q4 Results

The AZEK Company (NYSE:AZEK) stands out as a leading manufacturer in the building products industry, focusing on sustainable and innovative materials for outdoor living spaces. Competing with giants like Trex and Fiberon, AZEK is gearing up to release its quarterly earnings on May 6, 2025. Analysts are forecasting an Earnings Per Share (EPS) of $0.44 and projected revenue of approximately $444.8 million.

For the quarter ending March 2025, AZEK is anticipated to report a 12.8% increase in EPS from the same period last year, reaching $0.44 per share. This growth underscores the company's robust performance and its capability to amplify profits. Furthermore, analysts project revenues of $443.6 million, marking a 6% year-over-year growth and accentuating AZEK's expanding market presence.

The consistency in the consensus EPS estimate over the past 30 days underlines analysts' confidence in their projections. This steadiness suggests that analysts have collectively reassessed their initial projections without any changes, which could sway investor reactions and short-term stock price movements. Trends in earnings estimates are often linked with stock price fluctuations, as supported by empirical studies.

AZEK's financial metrics shed light on its valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 48.74, investors seem prepared to pay a premium for each dollar of earnings. The company's price-to-sales ratio of about 4.82 and enterprise value to sales ratio of around 5.01 reflect the value placed on its revenue. Additionally, AZEK's enterprise value to operating cash flow ratio of approximately 29.29 indicates how the market values its cash flow.

The company's debt-to-equity ratio of 0.32 points to a relatively low level of debt compared to its equity, showcasing financial stability. AZEK also maintains a strong liquidity position with a current ratio of 2.56, suggesting it can comfortably cover its short-term liabilities. These financial metrics, combined with an earnings yield of 2.05%, offer a modest return on investment relative to its earnings.

The AZEK Company (NYSE:AZEK) stands out as a leading manufacturer in the building products industry, focusing on sustainable and innovative materials for outdoor living spaces. Competing with giants like Trex and Fiberon, AZEK is gearing up to release its quarterly earnings on May 6, 2025. Analysts are forecasting an Earnings Per Share (EPS) of $0.44 and projected revenue of approximately $444.8 million.

For the quarter ending March 2025, AZEK is anticipated to report a 12.8% increase in EPS from the same period last year, reaching $0.44 per share. This growth underscores the company's robust performance and its capability to amplify profits. Furthermore, analysts project revenues of $443.6 million, marking a 6% year-over-year growth and accentuating AZEK's expanding market presence.

The consistency in the consensus EPS estimate over the past 30 days underlines analysts' confidence in their projections. This steadiness suggests that analysts have collectively reassessed their initial projections without any changes, which could sway investor reactions and short-term stock price movements. Trends in earnings estimates are often linked with stock price fluctuations, as supported by empirical studies.

AZEK's financial metrics shed light on its valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 48.74, investors seem prepared to pay a premium for each dollar of earnings. The company's price-to-sales ratio of about 4.82 and enterprise value to sales ratio of around 5.01 reflect the value placed on its revenue. Additionally, AZEK's enterprise value to operating cash flow ratio of approximately 29.29 indicates how the market values its cash flow.

The company's debt-to-equity ratio of 0.32 points to a relatively low level of debt compared to its equity, showcasing financial stability. AZEK also maintains a strong liquidity position with a current ratio of 2.56, suggesting it can comfortably cover its short-term liabilities. These financial metrics, combined with an earnings yield of 2.05%, offer a modest return on investment relative to its earnings.

The AZEK Company Inc. (NYSE:AZEK) share rose more than 2% today after the company reported its Q4 results, with revenue of $304.6 million coming in better than the Street estimate of $288.91 million. EPS was $0.16, worse than the Street estimate of $0.18.

The company expects Q1/23 revenue in the range of $200-215 million, compared to the Street estimate of $238.3 million.

Following the results, analysts at RBC Capital lowered their price target to $20 from $22, reducing their 2023 adjusted EBITDA estimate to $250 million from $297 million, at the low end of the $250-$265 million guide, with the move driven primarily by sharper expected Q1 destocking headwinds, incremental sell-out pressures, and continued cost inflation.