AZZ INC (AZZ) Stock Fundamental Analysis
NYSE:AZZ - New York Stock Exchange, Inc. - US0024741045 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AZZ. AZZ was compared to 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
AZZ had positive earnings in the past year.
In the past year AZZ had a positive cash flow from operations.
In multiple years AZZ reported negative net income over the last 5 years.
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 12.05%, AZZ is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.42%, AZZ is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
AZZ has a Return On Invested Capital (9.76%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for AZZ is below the industry average of 12.83%.
The last Return On Invested Capital (9.76%) for AZZ is above the 3 year average (8.27%), which is a sign of increasing profitability.
| 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
AZZ has a Profit Margin of 16.40%. This is amongst the best in the industry. AZZ outperforms 87.80% of its industry peers.
AZZ's Profit Margin has declined in the last couple of years.
The Operating Margin of AZZ (15.13%) is comparable to the rest of the industry.
AZZ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.45%, AZZ is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AZZ is still creating some value.
AZZ has more shares outstanding than it did 1 year ago.
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 3.71 indicates that AZZ is not in any danger for bankruptcy at the moment.
AZZ's Altman-Z score of 3.71 is in line compared to the rest of the industry. AZZ outperforms 51.22% of its industry peers.
The Debt to FCF ratio of AZZ is 1.51, which is an excellent value as it means it would take AZZ, only 1.51 years of fcf income to pay off all of its debts.
AZZ has a better Debt to FCF ratio (1.51) than 82.93% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that AZZ is not too dependend on debt financing.
The Debt to Equity ratio of AZZ (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.01
WACC9.64%
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.
Looking at the Current ratio, with a value of 1.51, AZZ is doing worse than 70.73% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that AZZ should not have too much problems paying its short term obligations.
The Quick ratio of AZZ (1.10) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.81% over the past year.
AZZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.92% yearly.
The Revenue has been growing slightly by 1.71% in the past 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)13.81%
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.57% yearly.
Based on estimates for the next years, AZZ will show a small growth in Revenue. The Revenue will grow by 5.11% on average per year.
EPS Next Y14.29%
EPS Next 2Y11.99%
EPS Next 3Y11.57%
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y4.46%
Revenue Next 3Y5.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 19.26, the valuation of AZZ can be described as rather expensive.
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 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.31, AZZ is valued correctly.
AZZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AZZ is cheaper than 63.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, AZZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZZ.
AZZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AZZ is cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 11.64 |
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)1.35
PEG (5Y)1.38
EPS Next 2Y11.99%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, AZZ is not a good candidate for dividend investing.
AZZ's Dividend Yield is a higher than the industry average which is at 1.15.
Compared to an average S&P500 Dividend Yield of 2.39, AZZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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
7.81% of the earnings are spent on dividend by AZZ. This is a low number and sustainable payout ratio.
AZZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.81%
EPS Next 2Y11.99%
EPS Next 3Y11.57%
NYSE:AZZ (8/4/2025, 2:38:05 PM)
106.34
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners103.64%
Inst Owner Change-0.94%
Ins Owners1.59%
Ins Owner Change-1.38%
Market Cap3.19B
Analysts77.14
Price Target120.63 (13.44%)
Short Float %2.93%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)13.85%
PT rev (3m)15.24%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.31 | ||
| P/S | 2.01 | ||
| P/FCF | 8.32 | ||
| P/OCF | 6.48 | ||
| P/B | 2.63 | ||
| P/tB | 33.17 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)5.52
EY5.19%
EPS(NY)6.52
Fwd EY6.13%
FCF(TTM)12.77
FCFY12.01%
OCF(TTM)16.42
OCFY15.44%
SpS52.87
BVpS40.46
TBVpS3.21
PEG (NY)1.35
PEG (5Y)1.38
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 | 3.71 |
F-Score7
WACC9.64%
ROIC/WACC1.01
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 Y14.29%
EPS Next 2Y11.99%
EPS Next 3Y11.57%
EPS Next 5YN/A
Revenue 1Y (TTM)1.71%
Revenue growth 3Y6.03%
Revenue growth 5Y8.24%
Sales Q2Q%2.12%
Revenue Next Year4.84%
Revenue Next 2Y4.46%
Revenue Next 3Y5.11%
Revenue Next 5YN/A
EBIT growth 1Y6.24%
EBIT growth 3Y8.16%
EBIT growth 5Y19.28%
EBIT Next Year43.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1363.22%
FCF growth 3Y32.51%
FCF growth 5Y4.09%
OCF growth 1Y425.32%
OCF growth 3Y42.7%
OCF growth 5Y11.92%