AZEK has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
AZEK has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
The AZEK Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -12.13%.
As of Dec. 2023, The AZEK Co has a Sloan Ratio of -12.13%, indicating there is a warning stage of accrual build up.
The historical data trend for The AZEK Co's Sloan Ratio % 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.
The AZEK Co Annual Data | |||||||||||||||
Trend | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | |||||||||
Sloan Ratio % | Get a 7-Day Free Trial | -2.92 | -5.53 | 2.77 | 10.47 | -8.71 |
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 | |
Sloan Ratio % | Get a 7-Day Free Trial | 1.86 | -4.04 | -5.99 | -8.71 | -12.13 |
For the Building Products & Equipment subindustry, The AZEK Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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.
For the Construction industry and Industrials sector, The AZEK Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The AZEK Co's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
The AZEK Co's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Sloan Ratio | = | (Net Income (A: Sep. 2023 ) | - | Cash Flow from Operations (A: Sep. 2023 ) |
- | Cash Flow from Investing (A: Sep. 2023 )) | / | Total Assets (A: Sep. 2023 ) | |
= | (67.955 | - | 362.542 | |
- | -88.504) | / | 2365.554 | |
= | -8.71% |
The AZEK Co's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as
Sloan Ratio | = | (Net Income (TTM) | - | Cash Flow from Operations (TTM)) |
- | Cash Flow from Investing (TTM)) | / | Total Assets (Q: Dec. 2023 ) | |
= | (119.51 | - | 339.845 | |
- | 57.289) | / | 2288.728 | |
= | -12.13% |
The AZEK Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 16.273 (Mar. 2023 ) + 34.875 (Jun. 2023 ) + 42.643 (Sep. 2023 ) + 25.719 (Dec. 2023 ) = $120 Mil. The AZEK Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 56.733 (Mar. 2023 ) + 166.901 (Jun. 2023 ) + 132.499 (Sep. 2023 ) + -16.288 (Dec. 2023 ) = $340 Mil. The AZEK Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -17.083 (Mar. 2023 ) + -6.701 (Jun. 2023 ) + -34.457 (Sep. 2023 ) + 115.53 (Dec. 2023 ) = $57 Mil.
* 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.
The AZEK Co (NYSE:AZEK) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
According to How to Beat the Market with the Sloan Ratio:
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2023, The AZEK Co has a Sloan Ratio of -12.13%, indicating there is a warning stage of accrual build up.
Thank you for viewing the detailed overview of The AZEK Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
From GuruFocus
By Business Wire • 10-20-2023
By Business Wire • 10-19-2023
By Business Wire Business Wire • 01-19-2023
By Business Wire • 08-03-2023
By Business Wire • 09-18-2023
By GuruFocus Research • 11-28-2023
By GuruFocus Research • 09-09-2023
By Business Wire • 08-22-2023
By Business Wire Business Wire • 11-18-2022
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.