Azek Price To Earning vs. Price To Book
| AZEK Stock | USD 53.34 2.36 4.63% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.26 | 0.3759 |
|
|
For Azek profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Azek to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Azek Company utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Azek's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Azek Company over time as well as its relative position and ranking within its peers.
Azek |
Azek's Revenue Breakdown by Earning Segment
Check out Trending Equities.
Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Azek. If investors know Azek will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Azek listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.478 | Earnings Share 1.04 | Revenue Per Share 10.094 | Quarterly Revenue Growth 0.121 | Return On Assets 0.0603 |
The market value of Azek Company is measured differently than its book value, which is the value of Azek that is recorded on the company's balance sheet. Investors also form their own opinion of Azek's value that differs from its market value or its book value, called intrinsic value, which is Azek's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Azek's market value can be influenced by many factors that don't directly affect Azek's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Azek's value and its price as these two are different measures arrived at by different means. Investors typically determine if Azek is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Azek's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Azek Company Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Azek's current stock value. Our valuation model uses many indicators to compare Azek value to that of its competitors to determine the firm's financial worth. Azek Company is rated third in price to earning category among its peers. It is rated fourth in price to book category among its peers fabricating about 0.17 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Azek Company is roughly 5.86 . Price To Book Ratio is expected to rise to 5.54 this year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Azek by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Azek Price To Book vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Azek |
| = | 31.47 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Azek |
| = | 5.37 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Azek Price To Book Comparison
Azek is currently under evaluation in price to book category among its peers.
Azek Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Azek, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Azek will eventually generate negative long term returns. The profitability progress is the general direction of Azek's change in net profit over the period of time. It can combine multiple indicators of Azek, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.7 M | -1.8 M | |
| Net Income Applicable To Common Shares | 78.1 M | 82.1 M | |
| Income Tax Expense | 56.1 M | 59 M | |
| Interest Income | 3.9 M | 3.7 M | |
| Operating Income | 212.1 M | 222.7 M | |
| Income Before Tax | 209.5 M | 220 M | |
| Net Income | 153.4 M | 161 M | |
| Net Interest Income | -45.2 M | -47.4 M | |
| Net Income From Continuing Ops | 78.1 M | 82.1 M | |
| Total Other Income Expense Net | -2.6 M | -2.7 M | |
| Change To Netincome | 15.4 M | 14.6 M | |
| Net Income Per Share | 1.05 | 1.11 | |
| Income Quality | 1.46 | 1.46 | |
| Net Income Per E B T | 0.73 | 0.50 |
Azek Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Azek. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Azek position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Azek's important profitability drivers and their relationship over time.
Use Azek in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Azek position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Azek will appreciate offsetting losses from the drop in the long position's value.Azek Pair Trading
Azek Company Pair Trading Analysis
The ability to find closely correlated positions to Azek could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Azek when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Azek - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Azek Company to buy it.
The correlation of Azek is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Azek moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Azek Company moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Azek can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Azek position
In addition to having Azek in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Electronic Equipment Thematic Idea Now
Electronic Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electronic Equipment Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Trending Equities. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Azek's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Azek Company at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Azek's income statement, its balance sheet, and the statement of cash flows.