The AZEK Co (The AZEK Co) Gross Margin % : 38.03% (As of Dec. 2023)

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What is The AZEK Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The AZEK Co's Gross Profit for the three months ended in Dec. 2023 was $91 Mil. The AZEK Co's Revenue for the three months ended in Dec. 2023 was $240 Mil. Therefore, The AZEK Co's Gross Margin % for the quarter that ended in Dec. 2023 was 38.03%.

The historical rank and industry rank for The AZEK Co's Gross Margin % or its related term are showing as below:

AZEK' s Gross Margin % Range Over the Past 10 Years
Min: 29.63 Med: 31.91 Max: 34.53
Current: 34.53

During the past 6 years, the highest Gross Margin % of The AZEK Co was 34.53%. The lowest was 29.63%. And the median was 31.91%.

AZEK's Gross Margin % is ranked better than
77.83% of 1610 companies
in the Construction industry
Industry Median: 19.125 vs AZEK: 34.53

The AZEK Co had a gross margin of 38.03% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The AZEK Co was 0.60% per year.

The AZEK Co Gross Margin % Historical Data

The historical data trend for The AZEK Co's Gross Margin % 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 Gross Margin % Chart

The AZEK Co Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

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31.88

32.92

33.08

30.20

31.94

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
Gross Margin %	Get a 7-Day Free Trial															22.00	28.64	34.11	38.50	38.03

Competitive Comparison of The AZEK Co's Gross Margin %

For the Building Products & Equipment subindustry, The AZEK Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, The AZEK Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The AZEK Co's Gross Margin % falls into.

The AZEK Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The AZEK Co's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	437.7	/	1370.316
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1370.316 - 932.663)	/	1370.316
	=	31.94 %

The AZEK Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	91.4	/	240.444
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(240.444 - 149.011)	/	240.444
	=	38.03 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

The AZEK Co (NYSE:AZEK) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The AZEK Co had a gross margin of 38.03% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

The AZEK Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of The AZEK Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

The AZEK Co (The AZEK Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » The AZEK Co Inc (NYSE:AZEK) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

4N1:Germany 4N1:Germany

Address

1330 W Fulton Street, Suite 350, Chicago, IL, USA, 60607

Website

https://www.azekco.com

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