Beyond The Numbers: 4 Analysts Discuss AZEK Co Stock

Throughout the last three months, 4 analysts have evaluated AZEK Co AZEK, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $56.25, a high estimate of $60.00, and a low estimate of $53.00. This current average reflects an increase of 4.65% from the previous average price target of $53.75.

Exploring Analyst Ratings: An In-Depth Overview

The perception of AZEK Co by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to AZEK Co. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of AZEK Co compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for AZEK Co's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into AZEK Co's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on AZEK Co analyst ratings.

Delving into AZEK Co's Background

The AZEK Co Inc is a designer and manufacturer of beautiful, low maintenance and environmentally sustainable products focused on the fast-growing Outdoor Living market. Its portfolio of products includes decks, rail, trim, outdoor furniture among others. The company operates in two segments: Residential Segment that manufactures and distributes decking, railing, trim, moulding, pergolas and cabanas and accessories through a national network of dealers and distributors and multiple home improvement retailers; and Commercial Segment that manufactures, fabricates and distributes lockers and bathroom partitions. It generates maximum revenue from the Residential segment. The company's brand includes TimberTech; AZEK; Versatex, Ultralox, StruXure, and Intex.

AZEK Co: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining AZEK Co's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.71% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.35%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): AZEK Co's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.32%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): AZEK Co's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.83%, the company may face hurdles in achieving optimal financial performance.

Debt Management: AZEK Co's debt-to-equity ratio is below the industry average. With a ratio of 0.32, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.