AZEK Company Receives Strong Rating from Guru Strategy

AZEK COMPANY INC has been rated 66% by a growth strategy, signaling a strong outlook. The report highlights its solid fundamentals despite some weaknesses in return metrics.

Date: 29-03-2025

AI Rating: 6

Overview of AZEK’s Rating
According to the report, AZEK COMPANY INC has received a rating of 66% using the P/B Growth Investor strategy, which points to a positive outlook driven by solid underlying fundamentals. Typically, a score of 80% or higher indicates a stock worth considering, and while AZEK's score is below that, it reflects the company's growth potential in the Construction Supplies sector.

Financial Metrics Analysis
The report offers several financial metrics that are crucial for professional investors. Notably, AZEK passes critical evaluations for Book/Market Ratio, Return on Assets, Cash Flow from Operations to Assets, and the relationship between Cash Flow and Return on Assets. These metrics suggest that AZEK effectively utilizes its assets to generate cash flows and maintain a healthy valuation relative to its book value.

However, significant red flags arise from failures in Return on Assets Variance, Capital Expenditures to Assets, and R&D to Assets. Specifically, failures in capital expenditures can indicate issues in reinvesting for future growth, while shortcomings in research and development might impede long-term innovation capabilities.

Investors might remain cautiously optimistic due to the strong financial fundamentals, but they should be cognizant of the underlying weaknesses that could impact future performance. The balance of strengths and weaknesses emphasizes the need to monitor AZEK closely, especially given the firm’s growth expectations in its market segment.

Stocks: AZEK