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

AZEK (The AZEK Co) Operating Margin % : 17.43% (As of Jun. 2024)


View and export this data going back to 2020. Start your Free Trial

What is The AZEK Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. The AZEK Co's Operating Income for the three months ended in Jun. 2024 was $76 Mil. The AZEK Co's Revenue for the three months ended in Jun. 2024 was $434 Mil. Therefore, The AZEK Co's Operating Margin % for the quarter that ended in Jun. 2024 was 17.43%.

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

AZEK' s Operating Margin % Range Over the Past 10 Years
Min: -2.32   Med: 8.28   Max: 15.07
Current: 15.07


AZEK's Operating Margin % is ranked better than
83.97% of 1684 companies
in the Construction industry
Industry Median: 5.21 vs AZEK: 15.07

The AZEK Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

The AZEK Co's Operating Income for the three months ended in Jun. 2024 was $76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $223 Mil.


The AZEK Co Operating Margin % Historical Data

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

The AZEK Co Annual Data
Trend Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Get a 7-Day Free Trial 7.62 -2.32 11.66 8.76 9.05

The AZEK Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Operating Margin % 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 15.06 15.52 5.57 17.66 17.43

Competitive Comparison of The AZEK Co's Operating Margin %

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

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

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



The AZEK Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=124.041 / 1370.316
=9.05 %

The AZEK Co's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=75.726 / 434.369
=17.43 %

* 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) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


The AZEK Co Operating Margin % Related Terms

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


The AZEK Co Business Description

Traded in Other Exchanges
N/A
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
Jonathan Skelly officer: See Remarks 1330 W. FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Jesse G Singh director, officer: CEO and President 16430 N. SCOTTSDALE ROAD, SUITE 400, SCOTTSDALE AZ 85254
Pamela J Edwards director 104 COLEMAN BOULEVARD, SAVANNAH GA 31408
Amanda Cimaglia officer: VP of ESG and IR 1330 WEST FULTON MARKET STREET, SUITE 350, CHICAGO IL 60607
Michelle A Kasson officer: Chief Information Officer 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
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