AZZ INC (AZZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZZ - US0024741045 - Common Stock
123.35 USD
+0.13 (+0.11%)
123.35 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AZZ. AZZ was compared to 42 industry peers in the Building Products industry. AZZ has only an average score on both its financial health and profitability. 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.
- AZZ had positive earnings in 4 of the past 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 14.41%, AZZ belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- The Return On Equity of AZZ (24.37%) is better than 78.57% of its industry peers.
- AZZ has a Return On Invested Capital (9.72%) 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 12.68%.
- 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
- AZZ's Profit Margin of 19.89% is amongst the best of the industry. AZZ outperforms 100.00% of its industry peers.
- AZZ's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.57%, AZZ is in line with its industry, outperforming 59.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of AZZ has grown nicely.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AZZ is creating some value.
- The number of shares outstanding for AZZ has been increased compared to 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 4.17 indicates that AZZ is not in any danger for bankruptcy at the moment.
- The Altman-Z score of AZZ (4.17) is comparable to the rest of the industry.
- 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.
- AZZ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of AZZ (0.41) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 4.17 |
ROIC/WACC1.04
WACC9.34%
2.3 Liquidity
- AZZ has a Current Ratio of 1.66. This is a normal value and indicates that AZZ is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of AZZ (1.66) is worse than 71.43% of its industry peers.
- A Quick Ratio of 1.21 indicates that AZZ should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.21, AZZ is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.20% 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.
- AZZ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.53%.
- The Revenue has been growing by 8.24% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 7.23% on average over the next years.
- Based on estimates for the next years, AZZ will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y16.75%
EPS Next 2Y13.93%
EPS Next 3Y12.07%
EPS Next 5Y7.23%
Revenue Next Year2.85%
Revenue Next 2Y4.07%
Revenue Next 3Y3.92%
Revenue Next 5Y4.26%
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 21.16 indicates a rather expensive valuation of AZZ.
- The rest of the industry has a similar Price/Earnings ratio as AZZ.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, AZZ is valued a bit cheaper.
- AZZ is valuated rather expensively with a Price/Forward Earnings ratio of 18.27.
- AZZ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AZZ is cheaper than 64.29% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AZZ to the average of the S&P500 Index (24.29), we can say AZZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
- AZZ's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, AZZ is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
- AZZ's 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)1.26
PEG (5Y)1.52
EPS Next 2Y13.93%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.65%, AZZ is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.67, AZZ has a dividend in line with its industry peers.
- With a Dividend Yield of 0.65, AZZ pays less dividend than the S&P500 average, which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
- The dividend of AZZ has a limited annual growth rate of 4.26%.
- AZZ has paid a dividend for at least 10 years, which is 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
- 6.90% 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.
DP6.9%
EPS Next 2Y13.93%
EPS Next 3Y12.07%
123.35
+0.13 (+0.11%)
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 Change1%
Ins Owners1.49%
Ins Owner Change-3.03%
Market Cap3.71B
Revenue(TTM)1.62B
Net Income(TTM)321.54M
Analysts77.33
Price Target130.55 (5.84%)
Short Float %3.36%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)3.31%
PT rev (3m)2.48%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 18.27 | ||
| P/S | 2.29 | ||
| P/FCF | 8.65 | ||
| P/OCF | 7.17 | ||
| P/B | 2.81 | ||
| P/tB | 19.52 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)5.83
EY4.73%
EPS(NY)6.75
Fwd EY5.47%
FCF(TTM)14.26
FCFY11.56%
OCF(TTM)17.21
OCFY13.95%
SpS53.79
BVpS43.89
TBVpS6.32
PEG (NY)1.26
PEG (5Y)1.52
Graham Number75.87
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 | 4.17 |
F-Score7
WACC9.34%
ROIC/WACC1.04
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 Y16.75%
EPS Next 2Y13.93%
EPS Next 3Y12.07%
EPS Next 5Y7.23%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%5.47%
Revenue Next Year2.85%
Revenue Next 2Y4.07%
Revenue Next 3Y3.92%
Revenue Next 5Y4.26%
EBIT growth 1Y5.66%
EBIT growth 3Y43.96%
EBIT growth 5Y19.26%
EBIT Next Year41.62%
EBIT Next 3Y16.43%
EBIT Next 5Y11.07%
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 5 / 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 6 / 10.
What are the PE and PB ratios of AZZ INC (AZZ) stock?
The Price/Earnings (PE) ratio for AZZ INC (AZZ) is 21.16 and the Price/Book (PB) ratio is 2.81.
Can you provide the financial health for AZZ stock?
The financial health rating of AZZ INC (AZZ) is 6 / 10.