AZZ INC (AZZ) Stock Fundamental Analysis
USA - NYSE:AZZ - US0024741045 - Common Stock
101.89 USD
+0.55 (+0.54%)
Taking everything into account, AZZ scores 5 out of 10 in our fundamental rating. AZZ was compared to 41 industry peers in the Building Products industry. AZZ has an average financial health and profitability rating. AZZ is not valued too expensively and it also shows a decent 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
AZZ has a better Return On Assets (14.11%) than 87.80% of its industry peers.
With a decent Return On Equity value of 24.10%, AZZ is doing good in the industry, outperforming 73.17% of the companies in the same industry.
AZZ has a Return On Invested Capital (9.24%) which is comparable to the rest of the industry.
AZZ had an Average Return On Invested Capital over the past 3 years of 8.28%. This is below the industry average of 12.54%.
The 3 year average ROIC (8.28%) for AZZ is below the current ROIC(9.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.11% | ||
| ROE | 24.1% | ||
| ROIC | 9.24% |
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 19.69%, AZZ belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AZZ has declined.
Looking at the Operating Margin, with a value of 15.10%, AZZ is in line with its industry, outperforming 58.54% of the companies in the same industry.
In the last couple of years the Operating Margin of AZZ has grown nicely.
AZZ has a Gross Margin of 24.19%. This is in the lower half of the industry: AZZ underperforms 68.29% of its industry peers.
In the last couple of years the Gross Margin of AZZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.1% | ||
| PM (TTM) | 19.69% | ||
| GM | 24.19% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AZZ is destroying value.
Compared to 1 year ago, AZZ has more shares outstanding
Compared to 5 years ago, AZZ has more shares outstanding
The debt/assets ratio for AZZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that AZZ is not in any danger for bankruptcy at the moment.
AZZ's Altman-Z score of 3.68 is in line compared to the rest of the industry. AZZ outperforms 48.78% of its industry peers.
The Debt to FCF ratio of AZZ is 1.42, which is an excellent value as it means it would take AZZ, only 1.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, AZZ belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that AZZ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.44, AZZ is doing good in the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.93
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.73 indicates that AZZ should not have too much problems paying its short term obligations.
AZZ has a Current ratio of 1.73. This is in the lower half of the industry: AZZ underperforms 65.85% of its industry peers.
A Quick Ratio of 1.25 indicates that AZZ should not have too much problems paying its short term obligations.
AZZ has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
AZZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.15%, which is quite good.
The Earnings Per Share has been growing by 13.92% on average over the past years. This is quite good.
AZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.55%.
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)15.15%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%13.14%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%2.02%
3.2 Future
AZZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.12% yearly.
AZZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y16.56%
EPS Next 2Y13.76%
EPS Next 3Y12.07%
EPS Next 5Y7.12%
Revenue Next Year3.04%
Revenue Next 2Y4.07%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.88 indicates a rather expensive valuation of AZZ.
The rest of the industry has a similar Price/Earnings ratio as AZZ.
AZZ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.14, AZZ is valued correctly.
AZZ's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 33.61. AZZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZZ is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AZZ is valued cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.52 | ||
| EV/EBITDA | 11.1 |
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 12.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)1.28
EPS Next 2Y13.76%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
AZZ has a yearly dividend return of 0.80%, which is pretty low.
AZZ's Dividend Yield is a higher than the industry average which is at 1.32.
With a Dividend Yield of 0.80, AZZ pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
6.77% of the earnings are spent on dividend by AZZ. This is a low number and sustainable payout ratio.
The dividend of AZZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.77%
EPS Next 2Y13.76%
EPS Next 3Y12.07%
NYSE:AZZ (11/11/2025, 1:26:42 PM)
101.89
+0.55 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change3.13%
Ins Owners1.49%
Ins Owner Change-2.72%
Market Cap3.06B
Revenue(TTM)1.59B
Net Income(TTM)314.07M
Analysts77.33
Price Target126.37 (24.03%)
Short Float %3.71%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.84
Dividend Growth(5Y)4.26%
DP6.77%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.42%
Min EPS beat(2)-2.53%
Max EPS beat(2)11.37%
EPS beat(4)2
Avg EPS beat(4)4.51%
Min EPS beat(4)-2.53%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)10.27%
EPS beat(12)9
Avg EPS beat(12)9.13%
EPS beat(16)12
Avg EPS beat(16)9.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.61%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-3.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-5.47%
Max Revenue beat(4)0.82%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-0.83%
Revenue beat(16)5
Avg Revenue beat(16)-8.32%
PT rev (1m)-0.8%
PT rev (3m)4.71%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-0.98%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)-1.68%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.88 | ||
| Fwd PE | 15.14 | ||
| P/S | 1.92 | ||
| P/FCF | 7.52 | ||
| P/OCF | 6.08 | ||
| P/B | 2.35 | ||
| P/tB | 18.31 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)5.7
EY5.59%
EPS(NY)6.73
Fwd EY6.6%
FCF(TTM)13.54
FCFY13.29%
OCF(TTM)16.75
OCFY16.44%
SpS53.05
BVpS43.35
TBVpS5.56
PEG (NY)1.08
PEG (5Y)1.28
Graham Number74.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.11% | ||
| ROE | 24.1% | ||
| ROCE | 12.03% | ||
| ROIC | 9.24% | ||
| ROICexc | 9.25% | ||
| ROICexgc | 21.39% | ||
| OM | 15.1% | ||
| PM (TTM) | 19.69% | ||
| GM | 24.19% | ||
| FCFM | 25.53% |
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 | 0.44 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 112.73% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 154.28% | ||
| Profit Quality | 129.62% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.68 |
F-Score7
WACC9.91%
ROIC/WACC0.93
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)15.15%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%13.14%
EPS Next Y16.56%
EPS Next 2Y13.76%
EPS Next 3Y12.07%
EPS Next 5Y7.12%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%2.02%
Revenue Next Year3.04%
Revenue Next 2Y4.07%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
EBIT growth 1Y3.55%
EBIT growth 3Y43.96%
EBIT growth 5Y19.26%
EBIT Next Year44.43%
EBIT Next 3Y16.56%
EBIT Next 5Y11.47%
FCF growth 1Y911.76%
FCF growth 3Y29.01%
FCF growth 5Y4.08%
OCF growth 1Y314.91%
OCF growth 3Y42.7%
OCF growth 5Y11.92%
AZZ INC / AZZ FAQ
Can you provide the ChartMill fundamental rating for AZZ INC?
ChartMill assigns a fundamental rating of 6 / 10 to AZZ.
What is the valuation status for AZZ stock?
ChartMill assigns a valuation rating of 6 / 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 6 / 10.
What is the valuation of AZZ INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AZZ INC (AZZ) is 17.88 and the Price/Book (PB) ratio is 2.35.
What is the earnings growth outlook for AZZ INC?
The Earnings per Share (EPS) of AZZ INC (AZZ) is expected to grow by 16.56% in the next year.