Added to YB: 2024-03-26
Pitch date: 2024-03-18
AZEK [bearish]
The AZEK Company Inc.
-14.3%
current return
Author Info
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Company Info
The AZEK Company Inc. engages in the design, manufacturing, and selling of building products for residential, commercial, and industrial markets in the United States and Canada.
Market Cap
$7.8B
Pitch Price
$47.55
Price Target
N/A
Dividend
N/A
EV/EBITDA
22.02
P/E
52.76
EV/Sales
5.42
Sector
Building Products
Category
N/A
Outdoor Deck: $AZEK
AZEK entered composite decking in '07. PVC decks cost more upfront but have lower lifetime cost vs pressure-treated. AZEK offers both PVC & wood composite under TimberTech brand. Built portfolio via M&A - challenging to coordinate 6 brands vs Trex's lean SKUs. Margins & brand awareness lag due to lack of focus. New mgmt streamlined mfg but needs to fix positioning & distribution. Trex preferred by contractors for install consistency. Penetration grew 10% to 25% but further gains face cyclical & substitute risks. Valuation stretched at 50x P/E despite strong position.
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