Azek Company Inc. (AZEK:NYE) Analysts rate as a Strong Buy

STA Research
by: STA Research

Based on the Azek Company Inc stock forecasts from 16 analysts, the average analyst target price for Azek Company Inc is USD 33.09 over the next 12 months. Azek Company Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Azek Company Inc is Slightly Bearish, which is based on 5 positive signals and 9 negative signals. At the last closing, Azek Company Inc’s stock price was USD 15.79. Azek Company Inc’s stock price has changed by -6.20% over the past week, -2.59% over the past month and -60.11% over the last year.

Stephens & Co. recently cut the target on the stock to $20 from $41.  The analyst had a previous rating of Overweight.

In the United States, The AZEK Company Inc. designs, manufactures, and sells building products for the residential, commercial, and industrial industries. It is divided into two categories: residential and commercial. CPG Newco LLC was the previous name of the corporation, which changed to The AZEK Company Inc. in June 2020. The AZEK Company Inc. is based in Chicago, Illinois, and was founded in 2013. 1330 West Fulton Street, Chicago, IL 60607, United States

 

What we like:

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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