AZZ INC (AZZ) Fundamental Analysis & Valuation
NYSE:AZZ • US0024741045
Current stock price
143.53 USD
+0.49 (+0.34%)
At close:
143.53 USD
0 (0%)
After Hours:
This AZZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AZZ Profitability Analysis
1.1 Basic Checks
- In the past year AZZ was profitable.
- In the past year AZZ had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 14.33%, AZZ belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 23.73%, AZZ is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.23%, AZZ is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AZZ is below the industry average of 11.86%.
- The last Return On Invested Capital (10.23%) for AZZ is above the 3 year average (9.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 23.73% | ||
| ROIC | 10.23% |
ROA(3y)6.89%
ROA(5y)5.06%
ROE(3y)12.69%
ROE(5y)8.7%
ROIC(3y)9.23%
ROIC(5y)8.14%
1.3 Margins
- AZZ's Profit Margin of 19.23% is amongst the best of the industry. AZZ outperforms 97.56% of its industry peers.
- In the last couple of years the Profit Margin of AZZ has grown nicely.
- AZZ has a better Operating Margin (16.27%) than 63.41% of its industry peers.
- In the last couple of years the Operating Margin of AZZ has grown nicely.
- The Gross Margin of AZZ (24.17%) is worse than 70.73% of its industry peers.
- In the last couple of years the Gross Margin of AZZ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.27% | ||
| PM (TTM) | 19.23% | ||
| GM | 24.17% |
OM growth 3Y4.85%
OM growth 5Y4.22%
PM growth 3YN/A
PM growth 5Y18.46%
GM growth 3Y2.63%
GM growth 5Y-1.12%
2. AZZ Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AZZ is destroying value.
- AZZ has about the same amout of shares outstanding than it did 1 year ago.
- AZZ has more shares outstanding than it did 5 years ago.
- AZZ has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.72 indicates that AZZ is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.72, AZZ is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
- AZZ has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
- AZZ has a Debt to FCF ratio of 1.11. This is amongst the best in the industry. AZZ outperforms 82.93% of its industry peers.
- AZZ has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- AZZ has a Debt to Equity ratio of 0.37. This is in the better half of the industry: AZZ outperforms 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.99
WACC10.36%
2.3 Liquidity
- A Current Ratio of 1.70 indicates that AZZ should not have too much problems paying its short term obligations.
- AZZ has a worse Current ratio (1.70) than 68.29% 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.
- The Quick ratio of AZZ (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.21 |
3. AZZ Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 19.04% over the past year.
- AZZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.90% yearly.
- AZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.58%.
- The Revenue has been growing by 27.98% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.04%
EPS 3Y17.46%
EPS 5Y23.9%
EPS Q2Q%36.73%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y7.62%
Revenue growth 5Y27.98%
Sales Q2Q%9.44%
3.2 Future
- Based on estimates for the next years, AZZ will show a small growth in Earnings Per Share. The EPS will grow by 5.50% on average per year.
- Based on estimates for the next years, AZZ will show a small growth in Revenue. The Revenue will grow by 5.24% on average per year.
EPS Next Y10.39%
EPS Next 2Y10.59%
EPS Next 3Y8.67%
EPS Next 5Y5.5%
Revenue Next Year6.13%
Revenue Next 2Y5.18%
Revenue Next 3Y5.28%
Revenue Next 5Y5.24%
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. AZZ Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 23.19, AZZ is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of AZZ is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of AZZ to the average of the S&P500 Index (26.64), we can say AZZ is valued inline with the index average.
- A Price/Forward Earnings ratio of 21.00 indicates a rather expensive valuation of AZZ.
- AZZ's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, AZZ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 21 |
4.2 Price Multiples
- AZZ's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZZ indicates a rather cheap valuation: AZZ is cheaper than 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 13.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AZZ does not grow enough to justify the current Price/Earnings ratio.
- AZZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)0.97
EPS Next 2Y10.59%
EPS Next 3Y8.67%
5. AZZ Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.58%, AZZ is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.72, 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 | 0.58% |
5.2 History
- The dividend of AZZ has a limited annual growth rate of 2.31%.
- AZZ has paid a dividend for at least 10 years, which is a reliable track record.
- AZZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.31%
Div Incr Years1
Div Non Decr Years15
5.3 Sustainability
- 7.27% 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.
DP7.27%
EPS Next 2Y10.59%
EPS Next 3Y8.67%
AZZ Fundamentals: All Metrics, Ratios and Statistics
143.53
+0.49 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Industry Strength22.36
Industry Growth32.92
Earnings (Last)04-22 2026-04-22/amc
Earnings (Next)07-07 2026-07-07
Inst Owners97.31%
Inst Owner Change0.25%
Ins Owners1.13%
Ins Owner Change-3.46%
Market Cap4.29B
Revenue(TTM)1.65B
Net Income(TTM)317.26M
Analysts76
Price Target156.17 (8.81%)
Short Float %2.6%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.77
Dividend Growth(5Y)2.31%
DP7.27%
Div Incr Years1
Div Non Decr Years15
Ex-Date04-23 2026-04-23 (0.2)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.48%
Min EPS beat(2)2.1%
Max EPS beat(2)8.86%
EPS beat(4)3
Avg EPS beat(4)4.95%
Min EPS beat(4)-2.53%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)5.45%
EPS beat(12)9
Avg EPS beat(12)8.84%
EPS beat(16)12
Avg EPS beat(16)9.11%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)0.8%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)0.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.45%
Revenue beat(12)5
Avg Revenue beat(12)-0.89%
Revenue beat(16)6
Avg Revenue beat(16)-2.99%
PT rev (1m)1.02%
PT rev (3m)8.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 21 | ||
| P/S | 2.6 | ||
| P/FCF | 9.64 | ||
| P/OCF | 8.16 | ||
| P/B | 3.21 | ||
| P/tB | 20.16 | ||
| EV/EBITDA | 13.28 |
EPS(TTM)6.19
EY4.31%
EPS(NY)6.83
Fwd EY4.76%
FCF(TTM)14.89
FCFY10.38%
OCF(TTM)17.6
OCFY12.26%
SpS55.26
BVpS44.78
TBVpS7.12
PEG (NY)2.23
PEG (5Y)0.97
Graham Number78.9701 (-44.98%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 23.73% | ||
| ROCE | 13.55% | ||
| ROIC | 10.23% | ||
| ROICexc | 10.23% | ||
| ROICexgc | 23.67% | ||
| OM | 16.27% | ||
| PM (TTM) | 19.23% | ||
| GM | 24.17% | ||
| FCFM | 26.95% |
ROA(3y)6.89%
ROA(5y)5.06%
ROE(3y)12.69%
ROE(5y)8.7%
ROIC(3y)9.23%
ROIC(5y)8.14%
ROICexc(3y)9.24%
ROICexc(5y)8.17%
ROICexgc(3y)21.42%
ROICexgc(5y)18.56%
ROCE(3y)12.23%
ROCE(5y)10.79%
ROICexgc growth 3Y12.55%
ROICexgc growth 5Y15.6%
ROICexc growth 3Y13.8%
ROICexc growth 5Y13.09%
OM growth 3Y4.85%
OM growth 5Y4.22%
PM growth 3YN/A
PM growth 5Y18.46%
GM growth 3Y2.63%
GM growth 5Y-1.12%
F-Score8
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 89.7% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 146.57% | ||
| Profit Quality | 140.16% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 4.72 |
F-Score8
WACC10.36%
ROIC/WACC0.99
Cap/Depr(3y)116.81%
Cap/Depr(5y)100.11%
Cap/Sales(3y)6.14%
Cap/Sales(5y)5.45%
Profit Quality(3y)189.01%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.04%
EPS 3Y17.46%
EPS 5Y23.9%
EPS Q2Q%36.73%
EPS Next Y10.39%
EPS Next 2Y10.59%
EPS Next 3Y8.67%
EPS Next 5Y5.5%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y7.62%
Revenue growth 5Y27.98%
Sales Q2Q%9.44%
Revenue Next Year6.13%
Revenue Next 2Y5.18%
Revenue Next 3Y5.28%
Revenue Next 5Y5.24%
EBIT growth 1Y13.57%
EBIT growth 3Y12.84%
EBIT growth 5Y33.38%
EBIT Next Year42.63%
EBIT Next 3Y16.31%
EBIT Next 5Y11.49%
FCF growth 1Y231.78%
FCF growth 3Y224.32%
FCF growth 5Y46.97%
OCF growth 1Y110.26%
OCF growth 3Y95.65%
OCF growth 5Y41.68%
AZZ INC / AZZ Fundamental Analysis 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 4 / 10 to AZZ INC (AZZ). This can be considered as Fairly Valued.
How profitable is AZZ INC (AZZ) stock?
AZZ INC (AZZ) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for AZZ stock?
The Earnings per Share (EPS) of AZZ INC (AZZ) is expected to grow by 10.39% in the next year.
How sustainable is the dividend of AZZ INC (AZZ) stock?
The dividend rating of AZZ INC (AZZ) is 5 / 10 and the dividend payout ratio is 7.27%.