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AZEK (AZEK)

The AZEK® Company Inc. is an industry-leading designer and manufacturer of beautiful, low-maintenance residential and commercial building products and is committed to innovation, sustainability and research & development. Headquartered in Chicago, Illinois, the company operates manufacturing facilities in Ohio, Pennsylvania and Minnesota.

Company profile

Ticker
AZEK
Exchange
Website
CEO
Jesse G. Singh
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
CPG Newco LLC
SEC CIK
Subsidiaries
CPG International LLC • Vycom Corp. • Scranton Products Inc. • Sanatec Sub I Corporation • Santana Products Inc. • CPG Sub I Corporation • CPG Building Products LLC • WES, LLC • UltraLox Technology, LLC • Versatex Holdings, LLC ...
IRS number
901017663

AZEK stock data

Calendar

5 Aug 22
16 Aug 22
30 Sep 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 159.62M 159.62M 159.62M 159.62M 159.62M 159.62M
Cash burn (monthly) (no burn) 5.07M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 8.02M n/a n/a n/a n/a
Cash remaining n/a 151.6M n/a n/a n/a n/a
Runway (months of cash) n/a 29.9 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
2 Aug 22 Clifford Peter G Class A Common Stock Payment of exercise Dispose F No No 20.32 2,411 48.99K 41,341
1 Jul 22 Jonathan Skelly Class A Common Stock Grant Acquire A No No 0 1,079 0 226,173
1 Jul 22 Jonathan Skelly NQSO Class A Common Stock Grant Acquire A No No 17.39 2,494 43.37K 2,494
1 Jun 22 Morgan Walbridge Class A Common Stock Grant Acquire A No No 0 3,629 0 7,476
1 Jun 22 Morgan Walbridge NQSO Class A Common Stock Grant Acquire A No No 20.67 8,466 174.99K 8,466
16 May 22 Vernon J Nagel Class A Common Stock Buy Acquire P No No 18.89 5,000 94.45K 22,950
5 May 22 Vernon J Nagel Class A Common Stock Grant Acquire A No No 0 976 0 17,950
13F holders Current Prev Q Change
Total holders 265 265
Opened positions 61 67 -9.0%
Closed positions 61 42 +45.2%
Increased positions 117 101 +15.8%
Reduced positions 62 70 -11.4%
13F shares Current Prev Q Change
Total value 3.79B 6.92B -45.2%
Total shares 151.5M 149.64M +1.2%
Total puts 273.3K 55.7K +390.7%
Total calls 917.5K 261.4K +251.0%
Total put/call ratio 0.3 0.2 +39.8%
Largest owners Shares Value Change
ARES Ares Management 19.1M $474.35M 0.0%
Ontario Teachers Pension Plan Board 19.1M $474.34M 0.0%
BLK Blackrock 12.72M $315.97M -0.7%
Vanguard 9.86M $245.03M +1.0%
Massachusetts Financial Services 7.93M $196.99M +14.8%
FMR 5.07M $125.97M -25.5%
IPXAF Impax Asset Management 3.99M $98.72M +852.1%
Eaton Vance Management 3.28M $81.48M -0.3%
Brown Advisory 3.07M $78.79M -6.9%
Alliancebernstein 2.97M $73.71M -1.4%
Largest transactions Shares Bought/sold Change
FHI Federated Hermes 0 -3.95M EXIT
IPXAF Impax Asset Management 3.99M +3.57M +852.1%
Allspring Global Investments 1.86M -1.82M -49.5%
FMR 5.07M -1.74M -25.5%
Citadel Advisors 1.83M +1.51M +482.8%
Summit Partners Public Asset Management 0 -1.39M EXIT
Schroder Investment Management 1.12M +1.12M +145979.2%
Massachusetts Financial Services 7.93M +1.02M +14.8%
ZFSVF Zurich Insurance 0 -989.2K EXIT
Marshall Wace 1.69M +952.1K +128.2%

Financial report summary

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Risks
  • Demand for our products is significantly influenced by general economic conditions and trends in consumer spending on outdoor living and home exteriors, and adverse trends in, among other things, the health of the economy, repair and remodel and new construction activity, industrial production, consumer confidence and discretionary spending and institutional funding constraints could have a material adverse effect on our business.
  • Shortages and disruptions in supply, price increases or deviations in the quality of the raw materials used to manufacture our products could adversely affect our sales and operating results.
  • We operate in a competitive business environment. If we are unable to compete effectively, our sales would suffer and our business, financial condition and operating results would be adversely affected.
  • If we fail to develop new and improved products successfully, or if we fail to effectively manage the introduction of new products, our business will suffer.
  • Our business would suffer if we do not effectively manage changes in our manufacturing processes resulting from the growth and expansion of our business and operations, including with respect to new manufacturing facilities, cost-savings and integration initiatives and the introduction of new technologies and products.
  • Our sales and results of operations may suffer if we do not maintain our relationships with, forecast the demand of and make timely deliveries to our key distributors or other customers.
  • An interruption of our production capability at one or more of our manufacturing facilities from pandemics, accident, calamity or other causes, or events affecting the global economy, could adversely affect our business.
  • Our business operations could be adversely affected by the loss of the services from members of our senior management team and other key employees.
  • Acquisitions or joint ventures we may pursue in the future may be unsuccessful.
  • Our business could be adversely affected if we fail to maintain product quality and product performance at an acceptable cost or if we incur significant losses, increased costs or harm to our reputation or brand as a result of product liability claims or product recalls.
  • We provide product warranties and, if our product warranty obligations were significantly in excess of our reserves, our business, financial condition and results of operations could be materially and adversely affected.
  • We depend on third parties for transportation services, and the lack of availability of and/or increases in the cost of transportation could have a material adverse effect on our business and results of operations.
  • Increases in labor costs, potential labor disputes and work stoppages or an inability to hire skilled manufacturing, sales and other personnel could adversely affect our business.
  • If we are unable to collect accounts receivable from one or more of our significant distributors, dealers or other customers, our financial condition and operating results could suffer.
  • Subjective estimates and judgments used by management in the preparation of our financial statements, including estimates and judgments that may be required by new or changed accounting standards, may impact our financial condition and results of operations.
  • The estimates and forecasts of market opportunity and market growth included in this annual report may prove to be inaccurate, and we cannot assure you our business will grow at similar rates, or at all.
  • We may be subject to significant compliance costs as well as liabilities under environmental, health and safety laws and regulations, including climate- and climate change-related regulations, which could materially and adversely affect our business, financial condition and operations.
  • Our business operations could suffer if we fail to adequately protect our intellectual property rights, and we may experience claims by third parties that we are violating their intellectual property rights.
  • Any major disruption or failure of our information technology systems or our website, or our failure to successfully implement new technology effectively, could adversely affect our business and operations.
  • We face cybersecurity risks and risks arising from new regulations governing information security and privacy and may incur increasing costs in an effort to mitigate those risks.
  • Changes to legislative and regulatory policies related to home ownership may have a material adverse effect on our business, financial condition and results of operations.
  • Many of our products must comply with local building codes and ordinances and failure of our products to comply with such codes and ordinances may have an adverse effect on our business.
  • Our insurance coverage may be inadequate to protect against the potential hazards incident to our business.
  • We are in the early stages of implementing strategic initiatives related to the use of recycled materials. If we fail to implement these initiatives as expected, our business, financial condition and results of operations could be adversely affected.
  • Changes in trade policies, including the imposition of tariffs, could negatively impact our business, financial condition and results of operations.
  • We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
  • We and our subsidiaries may be able to incur substantially more debt. This could further exacerbate the risks to our financial condition described herein.
  • The terms of the credit agreements that govern the Senior Secured Credit Facilities may restrict our current and future operations, including our ability to respond to changes or to take certain actions.
  • We rely on available borrowings under the Revolving Credit Facility for cash to operate our business, and the availability of credit under the Revolving Credit Facility may be subject to significant fluctuation.
  • Uncertainty relating to the LIBOR calculation process and potential phasing out of LIBOR in the future may adversely affect our financing costs.
  • Provisions in our certificate of incorporation and bylaws, could make a merger, tender offer or proxy contest difficult, thereby depressing the trading price of our Class A common stock.
  • Our certificate of incorporation contains a provision renouncing our interest and expectancy in certain corporate opportunities.
  • We are a holding company and rely on dividends, distributions, and other payments, advances and transfers of funds from our subsidiaries to meet our obligations.
  • The Sponsors’ interests may conflict with our interests and the interests of other stockholders.
Management Discussion
  • Net sales for the three months ended June 30, 2022 increased by $67.5 million, or 20.6%, to $395.0 million from $327.5 million for the three months ended June 30, 2021. The increase was attributable to higher sales growth in both our Residential and Commercial segments. Net sales for the three months ended June 30, 2022 increased for our Residential segment by 17.8% and our Commercial segment by 43.3%, in each case as compared to the prior year period.
  • Cost of sales for the three months ended June 30, 2022 increased by $48.0 million, or 21.8%, to $268.6 million from $220.6 million for the three months ended June 30, 2021 primarily due to increased costs on higher sales volumes and higher costs of raw materials.
  • Gross profit for the three months ended June 30, 2022 increased by $19.6 million, or 18.3%, to $126.4 million from $106.8 million for the three months ended June 30, 2021. The increase in gross profit was primarily driven by the strong sales results in the Residential and Commercial segments, including positive pricing, partially offset by higher costs. Gross profit as a percent of net sales decreased to 32.0% for the three months ended June 30, 2022 compared to 32.6% for the three months ended June 30, 2021.

Content analysis

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H.S. senior Avg
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