AZEK

AZEK Company Inc - Ordinary Shares - Class A

Industrial/Transportation


Presented:07/26/2023
Price:$31.39
Cap:$4.74B
Current Price:$45.05
Cap:$6.52B

Presented

Date07/26/2023
Price$31.39
Market Cap$4.74B
Ent Value$4.12B
P/E Ratio376.83x
Book Value$9.51
Div Yield0%
Shares O/S150.93M
Ave Daily Vol1,657,422
Short Int5.15%

Current

Price$45.05
Market Cap$6.52B
The AZEK Co., Inc. is an industry manufacturer of premium building products that replace traditional materials and provide value through lower maintenance, refined aesthetics and reduced total cost. The firm operates through two segments: Residential and Commercial. The Residential consumer brands include TimberTech and AZEK Exteriors. The TimberTech offers a premium portfolio of capped polymer and capped composite decking as well as railing, porch, lighting and paver products. The AZEK Exteriors manufactures distinctly unique trim and moulding. The Commercial segment manufactures engineered sheet products and high-quality bathroom partitions and lockers. The company was founded on August 15, 2013 and is headquartered in Chicago, IL.

Publicly traded companies mentioned herein: Azek Company Inc (AZEK)

Highlights

The presenter is long shares of Azek Company Inc (AZEK) due to its significant runway for margin growth. In a significant move, the company shifted from using virgin materials to recycled materials, which is expected to reduce costs by 50% and help offset recent PVC price increases that should turn into a future tailwind. Despite potential volume declines in 2023, the presenter sees the gross margin expansion driving EBITDA to $350MM in 2024, with the potential for it to CAGR at 20% going forward, yielding upside to $36 per share on 14X FY25 EBITDA and $48 per share going out to FY26.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.