AZZ INC (AZZ) Stock Fundamental Analysis
NYSE:AZZ - US0024741045 - Common Stock
115.58 USD
+0.39 (+0.34%)
115.58 USD
0 (0%)
Overall AZZ gets a fundamental rating of 5 out of 10. We evaluated AZZ against 41 industry peers in the Building Products industry. AZZ has only an average score on both its financial health and profitability. 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.
In multiple years AZZ reported negative net income over the last 5 years.
Each year in the past 5 years AZZ had a positive operating cash flow.
1.2 Ratios
AZZ has a better Return On Assets (12.05%) than 78.05% of its industry peers.
AZZ has a better Return On Equity (21.42%) than 73.17% of its industry peers.
AZZ has a Return On Invested Capital of 9.76%. This is comparable to the rest of the industry: AZZ outperforms 53.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZZ is below the industry average of 12.73%.
The 3 year average ROIC (8.27%) for AZZ is below the current ROIC(9.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 21.42% | ||
| ROIC | 9.76% |
ROA(3y)1.19%
ROA(5y)0.43%
ROE(3y)2.39%
ROE(5y)0.87%
ROIC(3y)8.27%
ROIC(5y)9.3%
1.3 Margins
With an excellent Profit Margin value of 16.40%, AZZ belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of AZZ has declined.
AZZ has a Operating Margin of 15.13%. This is comparable to the rest of the industry: AZZ outperforms 58.54% of its industry peers.
In the last couple of years the Operating Margin of AZZ has grown nicely.
AZZ has a worse Gross Margin (24.45%) than 73.17% of its industry peers.
AZZ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.13% | ||
| PM (TTM) | 16.4% | ||
| GM | 24.45% |
OM growth 3Y2.01%
OM growth 5Y10.19%
PM growth 3YN/A
PM growth 5Y-6.05%
GM growth 3Y2.76%
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.
AZZ has more shares outstanding than it did 1 year ago.
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 3.88 indicates that AZZ is not in any danger for bankruptcy at the moment.
The Altman-Z score of AZZ (3.88) is comparable to the rest of the industry.
AZZ has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
AZZ's Debt to FCF ratio of 1.51 is amongst the best of the industry. AZZ outperforms 82.93% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that AZZ is not too dependend on debt financing.
AZZ has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.92
WACC10.64%
2.3 Liquidity
AZZ has a Current Ratio of 1.51. 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 Current ratio of 1.51. This is in the lower half of the industry: AZZ underperforms 73.17% of its industry peers.
AZZ has a Quick Ratio of 1.10. This is a normal value and indicates that AZZ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.10, AZZ is doing worse than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
AZZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.81%, 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 1.71%.
Measured over the past years, AZZ shows a quite strong growth in Revenue. The Revenue has been growing by 8.24% on average per year.
EPS 1Y (TTM)13.81%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%21.92%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y6.03%
Revenue growth 5Y8.24%
Sales Q2Q%2.12%
3.2 Future
AZZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.32% yearly.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y16.8%
EPS Next 2Y13.56%
EPS Next 3Y11.79%
EPS Next 5Y7.32%
Revenue Next Year4.71%
Revenue Next 2Y4.4%
Revenue Next 3Y4.66%
Revenue Next 5Y4.4%
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
AZZ is valuated rather expensively with a Price/Earnings ratio of 20.94.
Compared to the rest of the industry, the Price/Earnings ratio of AZZ is on the same level as its industry peers.
AZZ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.23, which indicates a rather expensive current valuation of AZZ.
Based on the Price/Forward Earnings ratio, AZZ is valued a bit cheaper than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, AZZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 17.23 |
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 97.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 12.46 |
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.
PEG (NY)1.25
PEG (5Y)1.5
EPS Next 2Y13.56%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
AZZ has a yearly dividend return of 0.72%, which is pretty low.
Compared to an average industry Dividend Yield of 1.14, AZZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, AZZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 7.81% of its income as dividend. This is a sustainable payout ratio.
AZZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.81%
EPS Next 2Y13.56%
EPS Next 3Y11.79%
115.58
+0.39 (+0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners104.89%
Inst Owner Change-2.99%
Ins Owners1.52%
Ins Owner Change-2.54%
Market Cap3.47B
Analysts77.14
Price Target126.47 (9.42%)
Short Float %2.78%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.84
Dividend Growth(5Y)4.26%
DP7.81%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.41%
Min EPS beat(2)-0.54%
Max EPS beat(2)11.37%
EPS beat(4)3
Avg EPS beat(4)5.9%
Min EPS beat(4)-0.54%
Max EPS beat(4)11.37%
EPS beat(8)7
Avg EPS beat(8)12.58%
EPS beat(12)9
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)11.31%
Revenue beat(2)0
Avg Revenue beat(2)-4.81%
Min Revenue beat(2)-5.47%
Max Revenue beat(2)-4.16%
Revenue beat(4)1
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-5.47%
Max Revenue beat(4)0.82%
Revenue beat(8)4
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-1.78%
Revenue beat(16)6
Avg Revenue beat(16)11.86%
PT rev (1m)4.84%
PT rev (3m)20.82%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)3.46%
EPS NY rev (1m)2.19%
EPS NY rev (3m)2.17%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.94 | ||
| Fwd PE | 17.23 | ||
| P/S | 2.19 | ||
| P/FCF | 9.05 | ||
| P/OCF | 7.04 | ||
| P/B | 2.86 | ||
| P/tB | 36.05 | ||
| EV/EBITDA | 12.46 |
EPS(TTM)5.52
EY4.78%
EPS(NY)6.71
Fwd EY5.8%
FCF(TTM)12.77
FCFY11.05%
OCF(TTM)16.42
OCFY14.21%
SpS52.87
BVpS40.46
TBVpS3.21
PEG (NY)1.25
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 21.42% | ||
| ROCE | 12.7% | ||
| ROIC | 9.76% | ||
| ROICexc | 9.77% | ||
| ROICexgc | 24% | ||
| OM | 15.13% | ||
| PM (TTM) | 16.4% | ||
| GM | 24.45% | ||
| FCFM | 24.16% |
ROA(3y)1.19%
ROA(5y)0.43%
ROE(3y)2.39%
ROE(5y)0.87%
ROIC(3y)8.27%
ROIC(5y)9.3%
ROICexc(3y)8.29%
ROICexc(5y)9.38%
ROICexgc(3y)19.39%
ROICexgc(5y)20.37%
ROCE(3y)10.78%
ROCE(5y)12.12%
ROICexcg growth 3Y-10.37%
ROICexcg growth 5Y-4.21%
ROICexc growth 3Y-15.16%
ROICexc growth 5Y-1.84%
OM growth 3Y2.01%
OM growth 5Y10.19%
PM growth 3YN/A
PM growth 5Y-6.05%
GM growth 3Y2.76%
GM growth 5Y1.66%
F-Score7
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 130.67% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 3.41 | ||
| Cash Conversion | 152.22% | ||
| Profit Quality | 147.37% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.88 |
F-Score7
WACC10.64%
ROIC/WACC0.92
Cap/Depr(3y)112.42%
Cap/Depr(5y)96.8%
Cap/Sales(3y)5.95%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.81%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%21.92%
EPS Next Y16.8%
EPS Next 2Y13.56%
EPS Next 3Y11.79%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y6.03%
Revenue growth 5Y8.24%
Sales Q2Q%2.12%
Revenue Next Year4.71%
Revenue Next 2Y4.4%
Revenue Next 3Y4.66%
Revenue Next 5Y4.4%
EBIT growth 1Y6.24%
EBIT growth 3Y8.16%
EBIT growth 5Y19.28%
EBIT Next Year44.64%
EBIT Next 3Y16.01%
EBIT Next 5Y11.75%
FCF growth 1Y1363.22%
FCF growth 3Y32.51%
FCF growth 5Y4.09%
OCF growth 1Y425.32%
OCF growth 3Y42.7%
OCF growth 5Y11.92%