AZZ INC (AZZ) Stock Fundamental Analysis
NYSE:AZZ • US0024741045
135.98 USD
+1.58 (+1.18%)
At close: Feb 27, 2026
135.98 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Taking everything into account, AZZ scores 6 out of 10 in our fundamental rating. AZZ was compared to 42 industry peers in the Building Products industry. AZZ scores excellent on profitability, but there are some minor concerns on its financial health. AZZ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AZZ was profitable.
- AZZ had a positive operating cash flow in the past year.
- Of the past 5 years AZZ 4 years were profitable.
- AZZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 14.41%, AZZ belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
- AZZ has a Return On Equity of 24.37%. This is amongst the best in the industry. AZZ outperforms 80.95% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.72%, AZZ is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AZZ is below the industry average of 11.92%.
- The 3 year average ROIC (8.28%) for AZZ is below the current ROIC(9.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.41% | ||
| ROE | 24.37% | ||
| ROIC | 9.72% |
ROA(3y)1.19%
ROA(5y)2.99%
ROE(3y)2.39%
ROE(5y)5.22%
ROIC(3y)8.28%
ROIC(5y)7.31%
1.3 Margins
- Looking at the Profit Margin, with a value of 19.89%, AZZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- AZZ's Profit Margin has declined in the last couple of years.
- The Operating Margin of AZZ (15.57%) is better than 61.90% of its industry peers.
- AZZ's Operating Margin has improved in the last couple of years.
- The Gross Margin of AZZ (24.12%) is worse than 66.67% of its industry peers.
- In the last couple of years the Gross Margin of AZZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.57% | ||
| PM (TTM) | 19.89% | ||
| GM | 24.12% |
OM growth 3Y-0.2%
OM growth 5Y10.18%
PM growth 3Y-40.76%
PM growth 5Y-6.06%
GM growth 3Y-4.45%
GM growth 5Y1.66%
2. Health
2.1 Basic Checks
- AZZ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, AZZ has more shares outstanding
- The number of shares outstanding for AZZ has been increased compared to 5 years ago.
- AZZ has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.40 indicates that AZZ is not in any danger for bankruptcy at the moment.
- AZZ has a better Altman-Z score (4.40) than 61.90% of its industry peers.
- AZZ has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
- AZZ has a Debt to FCF ratio of 1.28. This is amongst the best in the industry. AZZ outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that AZZ is not too dependend on debt financing.
- AZZ's Debt to Equity ratio of 0.41 is fine compared to the rest of the industry. AZZ outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.06
WACC9.2%
2.3 Liquidity
- A Current Ratio of 1.66 indicates that AZZ should not have too much problems paying its short term obligations.
- AZZ has a worse Current ratio (1.66) than 69.05% of its industry peers.
- AZZ has a Quick Ratio of 1.21. This is a normal value and indicates that AZZ is financially healthy and should not expect problems in meeting its short term obligations.
- AZZ has a Quick ratio (1.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
- AZZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.20%, which is quite good.
- AZZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
- Looking at the last year, AZZ shows a small growth in Revenue. The Revenue has grown by 1.53% in the last year.
- AZZ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.24% yearly.
EPS 1Y (TTM)13.2%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%9.35%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%5.47%
3.2 Future
- Based on estimates for the next years, AZZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
- Based on estimates for the next years, AZZ will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y18.04%
EPS Next 2Y14.9%
EPS Next 3Y12.81%
EPS Next 5Y8.55%
Revenue Next Year3.29%
Revenue Next 2Y4.52%
Revenue Next 3Y4.07%
Revenue Next 5Y4.53%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.32, which indicates a rather expensive current valuation of AZZ.
- AZZ's Price/Earnings is on the same level as the industry average.
- AZZ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
- A Price/Forward Earnings ratio of 19.81 indicates a rather expensive valuation of AZZ.
- AZZ's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 28.05. AZZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZZ.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZZ indicates a rather cheap valuation: AZZ is cheaper than 95.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.48 | ||
| EV/EBITDA | 13.57 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AZZ has a very decent profitability rating, which may justify a higher PE ratio.
- AZZ's earnings are expected to grow with 12.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)1.68
EPS Next 2Y14.9%
EPS Next 3Y12.81%
5. Dividend
5.1 Amount
- AZZ has a yearly dividend return of 0.60%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.66, AZZ has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AZZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
- The dividend of AZZ has a limited annual growth rate of 4.26%.
- AZZ has been paying a dividend for at least 10 years, so it has a reliable track record.
- AZZ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.26%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
- AZZ pays out 6.90% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AZZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.9%
EPS Next 2Y14.9%
EPS Next 3Y12.81%
135.98
+1.58 (+1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-07 2026-01-07/amc
Earnings (Next)04-20 2026-04-20/amc
Inst Owners96.36%
Inst Owner Change-4.36%
Ins Owners1.49%
Ins Owner Change-2.18%
Market Cap4.06B
Revenue(TTM)1.62B
Net Income(TTM)321.54M
Analysts77.33
Price Target140.47 (3.3%)
Short Float %3.07%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.84
Dividend Growth(5Y)4.26%
DP6.9%
Div Incr Years0
Div Non Decr Years14
Ex-Date02-05 2026-02-05 (0.2)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-2.53%
Max EPS beat(2)2.1%
EPS beat(4)2
Avg EPS beat(4)2.6%
Min EPS beat(4)-2.53%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)8.33%
EPS beat(12)9
Avg EPS beat(12)8.41%
EPS beat(16)12
Avg EPS beat(16)9.85%
Revenue beat(2)1
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)0.8%
Revenue beat(4)1
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-5.47%
Max Revenue beat(4)0.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-0.99%
Revenue beat(16)6
Avg Revenue beat(16)-5.53%
PT rev (1m)7.6%
PT rev (3m)11.16%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)0.68%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 19.81 | ||
| P/S | 2.51 | ||
| P/FCF | 9.48 | ||
| P/OCF | 7.85 | ||
| P/B | 3.08 | ||
| P/tB | 21.37 | ||
| EV/EBITDA | 13.57 |
EPS(TTM)5.83
EY4.29%
EPS(NY)6.86
Fwd EY5.05%
FCF(TTM)14.35
FCFY10.55%
OCF(TTM)17.32
OCFY12.74%
SpS54.15
BVpS44.18
TBVpS6.36
PEG (NY)1.29
PEG (5Y)1.68
Graham Number76.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.41% | ||
| ROE | 24.37% | ||
| ROCE | 12.66% | ||
| ROIC | 9.72% | ||
| ROICexc | 9.72% | ||
| ROICexgc | 22.51% | ||
| OM | 15.57% | ||
| PM (TTM) | 19.89% | ||
| GM | 24.12% | ||
| FCFM | 26.5% |
ROA(3y)1.19%
ROA(5y)2.99%
ROE(3y)2.39%
ROE(5y)5.22%
ROIC(3y)8.28%
ROIC(5y)7.31%
ROICexc(3y)8.29%
ROICexc(5y)7.36%
ROICexgc(3y)19.39%
ROICexgc(5y)16.4%
ROCE(3y)10.78%
ROCE(5y)9.52%
ROICexgc growth 3Y19.31%
ROICexgc growth 5Y-4.23%
ROICexc growth 3Y12.92%
ROICexc growth 5Y-1.86%
OM growth 3Y-0.2%
OM growth 5Y10.18%
PM growth 3Y-40.76%
PM growth 5Y-6.06%
GM growth 3Y-4.45%
GM growth 5Y1.66%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 100.99% | ||
| Cap/Sales | 5.48% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 152.32% | ||
| Profit Quality | 133.27% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 4.4 |
F-Score7
WACC9.2%
ROIC/WACC1.06
Cap/Depr(3y)112.44%
Cap/Depr(5y)99.11%
Cap/Sales(3y)5.95%
Cap/Sales(5y)5.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.2%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%9.35%
EPS Next Y18.04%
EPS Next 2Y14.9%
EPS Next 3Y12.81%
EPS Next 5Y8.55%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%5.47%
Revenue Next Year3.29%
Revenue Next 2Y4.52%
Revenue Next 3Y4.07%
Revenue Next 5Y4.53%
EBIT growth 1Y5.66%
EBIT growth 3Y43.96%
EBIT growth 5Y19.26%
EBIT Next Year41.46%
EBIT Next 3Y15.99%
EBIT Next 5Y11.87%
FCF growth 1Y400.88%
FCF growth 3Y29.01%
FCF growth 5Y4.08%
OCF growth 1Y196.4%
OCF growth 3Y42.7%
OCF growth 5Y11.92%
AZZ INC / AZZ FAQ
What is the ChartMill fundamental rating of AZZ INC (AZZ) stock?
ChartMill assigns a fundamental rating of 6 / 10 to AZZ.
What is the valuation status of AZZ INC (AZZ) stock?
ChartMill assigns a valuation rating of 5 / 10 to AZZ INC (AZZ). This can be considered as Fairly Valued.
What is the profitability of AZZ stock?
AZZ INC (AZZ) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AZZ INC (AZZ) stock?
The Price/Earnings (PE) ratio for AZZ INC (AZZ) is 23.32 and the Price/Book (PB) ratio is 3.08.
Can you provide the financial health for AZZ stock?
The financial health rating of AZZ INC (AZZ) is 6 / 10.