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The AZEK Co (The AZEK Co) Piotroski F-Score : 9 (As of May. 01, 2024)


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What is The AZEK Co Piotroski F-Score?

Good Sign:

Piotroski F-Score is 9, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The AZEK Co has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for The AZEK Co's Piotroski F-Score or its related term are showing as below:

AZEK' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 9
Current: 9

During the past 6 years, the highest Piotroski F-Score of The AZEK Co was 9. The lowest was 4. And the median was 6.


The AZEK Co Piotroski F-Score Historical Data

The historical data trend for The AZEK Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The AZEK Co Piotroski F-Score Chart

The AZEK Co Annual Data
Trend Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Get a 7-Day Free Trial N/A 6.00 7.00 5.00 7.00

The AZEK Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 6.00 7.00 9.00

Competitive Comparison of The AZEK Co's Piotroski F-Score

For the Building Products & Equipment subindustry, The AZEK Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The AZEK Co's Piotroski F-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, The AZEK Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where The AZEK Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 16.273 + 34.875 + 42.643 + 25.719 = $120 Mil.
Cash Flow from Operations was 56.733 + 166.901 + 132.499 + -16.288 = $340 Mil.
Revenue was 377.692 + 387.553 + 388.812 + 240.444 = $1,395 Mil.
Gross Profit was 108.173 + 132.2 + 149.701 + 91.433 = $482 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(2348.701 + 2383.978 + 2358.866 + 2365.554 + 2288.728) / 5 = $2349.1654 Mil.
Total Assets at the begining of this year (Dec22) was $2,349 Mil.
Long-Term Debt & Capital Lease Obligation was $579 Mil.
Total Current Assets was $593 Mil.
Total Current Liabilities was $198 Mil.
Net Income was 35.818 + 27.476 + -4.776 + -25.836 = $33 Mil.

Revenue was 396.255 + 394.991 + 304.632 + 216.259 = $1,312 Mil.
Gross Profit was 122.46 + 126.387 + 71.864 + 47.579 = $368 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(2215.106 + 2319.48 + 2420.548 + 2383.091 + 2348.701) / 5 = $2337.3852 Mil.
Total Assets at the begining of last year (Dec21) was $2,215 Mil.
Long-Term Debt & Capital Lease Obligation was $584 Mil.
Total Current Assets was $514 Mil.
Total Current Liabilities was $177 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The AZEK Co's current Net Income (TTM) was 120. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

The AZEK Co's current Cash Flow from Operations (TTM) was 340. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=119.51/2348.701
=0.05088345

ROA (Last Year)=Net Income/Total Assets (Dec21)
=32.682/2215.106
=0.01475415

The AZEK Co's return on assets of this year was 0.05088345. The AZEK Co's return on assets of last year was 0.01475415. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

The AZEK Co's current Net Income (TTM) was 120. The AZEK Co's current Cash Flow from Operations (TTM) was 340. ==> 340 > 120 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=579.111/2349.1654
=0.24651776

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=583.726/2337.3852
=0.24973462

The AZEK Co's gearing of this year was 0.24651776. The AZEK Co's gearing of last year was 0.24973462. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=593.378/198.411
=2.99065072

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=513.51/176.747
=2.90533927

The AZEK Co's current ratio of this year was 2.99065072. The AZEK Co's current ratio of last year was 2.90533927. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

The AZEK Co's number of shares in issue this year was 148.876. The AZEK Co's number of shares in issue last year was 150.878. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=481.507/1394.501
=0.34528982

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=368.29/1312.137
=0.28067953

The AZEK Co's gross margin of this year was 0.34528982. The AZEK Co's gross margin of last year was 0.28067953. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=1394.501/2348.701
=0.59373288

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1312.137/2215.106
=0.59235856

The AZEK Co's asset turnover of this year was 0.59373288. The AZEK Co's asset turnover of last year was 0.59235856. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+1+1+1
=9

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

The AZEK Co has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

The AZEK Co  (NYSE:AZEK) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


The AZEK Co Piotroski F-Score Related Terms

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The AZEK Co (The AZEK Co) Business Description

Traded in Other Exchanges
Address
1330 W Fulton Street, Suite 350, Chicago, IL, USA, 60607
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 which are Residential and Commercial. It generates maximum revenue from the Residential segment. The company's brand includes TimberTech; AZEK; Versatex, Ultralox, StruXure, and Intex.
Executives
Jesse G Singh director, officer: CEO and President 16430 N. SCOTTSDALE ROAD, SUITE 400, SCOTTSDALE AZ 85254
Jonathan Skelly officer: See Remarks 1330 W. FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Samara Toole officer: Chief Marketing Officer 1330 W FULTON STREET, SUITE 350, CHICAGO IL 60607
Randy Herth officer: Chief Accounting Officer 1330 W. FULTON ST., SUITE 350, CHICAGO IL 60607
Harmit J Singh director 71 SOUTH WACKER DRIVE, 12TH FLOOR, CHICAGO IL 60606
Pamela J Edwards director 104 COLEMAN BOULEVARD, SAVANNAH GA 31408
Ares Corporate Opportunities Fund Iv, L.p. director, 10 percent owner 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ontario Teachers Pension Plan Board director, 10 percent owner 5650 YONGE STREET, TORONTO A6 M2M 4H5
Christopher Latkovic officer: SVP, Operations 1330 W. FULTON STREET, SUITE 350, CHICAGO IL 60607
Gary E Hendrickson director 1101 THIRD STREET SOUTH, MINNEAPOLIS MN 55415
Vernon J Nagel director 1330 W. FULTON STREET, SUITE 350, CHICAGO IL 60607
Sandra Lamartine officer: CHRO 1330 WEST FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Peter G Clifford officer: CFO 40 TOURNAMENT DRIVE SOUTH, HAWTHORN WOODS IL 60047
Brian Spaly director 250 COROMAR DRIVE, GOLETA CA 93117
Paul J. Kardish officer: Chief Legal Officer ORION ENERGY SYSTEMS, INC., 2210 WOODLAND DRIVE, MANITOWOC WI 54220