AZZ INC (AZZ) Fundamental Analysis & Valuation

NYSE:AZZ • US0024741045

Current stock price

121.975 USD
-0.75 (-0.61%)
Last:

This AZZ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AZZ Profitability Analysis

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.
AZZ Yearly Net Income VS EBIT VS OCF VS FCFAZZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • With an excellent Return On Assets value of 14.41%, AZZ belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 24.37%, AZZ belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
  • AZZ's Return On Invested Capital of 9.72% is in line compared to the rest of the industry. AZZ outperforms 59.52% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AZZ is below the industry average of 11.89%.
  • The last Return On Invested Capital (9.72%) for AZZ is above the 3 year average (8.28%), which is a sign of increasing profitability.
Industry RankSector 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%
AZZ Yearly ROA, ROE, ROICAZZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 19.89%, 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.
  • AZZ has a Operating Margin of 15.57%. This is in the better half of the industry: AZZ outperforms 61.90% of its industry peers.
  • In the last couple of years the Operating Margin of AZZ has grown nicely.
  • AZZ has a Gross Margin of 24.12%. This is in the lower half of the industry: AZZ underperforms 66.67% of its industry peers.
  • AZZ's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
AZZ Yearly Profit, Operating, Gross MarginsAZZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

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6

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 more shares outstanding than it did 1 year ago.
  • AZZ has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AZZ has an improved debt to assets ratio.
AZZ Yearly Shares OutstandingAZZ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
AZZ Yearly Total Debt VS Total AssetsAZZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • AZZ has an Altman-Z score of 4.14. This indicates that AZZ is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of AZZ (4.14) is better than 61.90% of its industry peers.
  • The Debt to FCF ratio of AZZ is 1.28, which is an excellent value as it means it would take AZZ, only 1.28 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 1.28, AZZ belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
  • AZZ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
  • AZZ has a Debt to Equity ratio of 0.41. This is in the better half of the industry: AZZ outperforms 64.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 1.28
Altman-Z 4.14
ROIC/WACC0.93
WACC10.5%
AZZ Yearly LT Debt VS Equity VS FCFAZZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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 69.05% of its industry peers.
  • A Quick Ratio of 1.21 indicates that AZZ should not have too much problems paying its short term obligations.
  • AZZ has a Quick ratio (1.21) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.21
AZZ Yearly Current Assets VS Current LiabilitesAZZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AZZ Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 13.20% over the past year.
  • The Earnings Per Share has been growing by 13.92% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 1.53% 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)13.2%
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

  • AZZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.35% yearly.
  • AZZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.88% yearly.
EPS Next Y17.94%
EPS Next 2Y14.94%
EPS Next 3Y13.06%
EPS Next 5Y8.35%
Revenue Next Year3.23%
Revenue Next 2Y4.67%
Revenue Next 3Y4.53%
Revenue Next 5Y4.88%

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.
AZZ Yearly Revenue VS EstimatesAZZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
AZZ Yearly EPS VS EstimatesAZZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8

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4

4. AZZ Valuation Analysis

4.1 Price/Earnings Ratio

  • AZZ is valuated rather expensively with a Price/Earnings ratio of 20.92.
  • The rest of the industry has a similar Price/Earnings ratio as AZZ.
  • AZZ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.89, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 17.75, the valuation of AZZ can be described as rather expensive.
  • AZZ's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. AZZ is around the same levels.
Industry RankSector Rank
PE 20.92
Fwd PE 17.75
AZZ Price Earnings VS Forward Price EarningsAZZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • AZZ's Enterprise Value to EBITDA is on the same level as the industry average.
  • 95.24% of the companies in the same industry are more expensive than AZZ, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.5
EV/EBITDA 12.41
AZZ Per share dataAZZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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.
  • A more expensive valuation may be justified as AZZ's earnings are expected to grow with 13.06% in the coming years.
PEG (NY)1.17
PEG (5Y)1.5
EPS Next 2Y14.94%
EPS Next 3Y13.06%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AZZ Dividend Analysis

5.1 Amount

  • AZZ has a yearly dividend return of 0.65%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.77, AZZ has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, AZZ's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.65%

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
AZZ Yearly Dividends per shareAZZ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • 6.90% 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.
DP6.9%
EPS Next 2Y14.94%
EPS Next 3Y13.06%
AZZ Yearly Income VS Free CF VS DividendAZZ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M
AZZ Dividend Payout.AZZ Dividend Payout, showing the Payout Ratio.AZZ Dividend Payout.PayoutRetained Earnings

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AZZ Fundamentals: All Metrics, Ratios and Statistics

AZZ INC

NYSE:AZZ (3/30/2026, 12:03:31 PM)

121.975

-0.75 (-0.61%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-07
Earnings (Next)04-20
Inst Owners97.25%
Inst Owner Change-4.34%
Ins Owners1.39%
Ins Owner Change-2.19%
Market Cap3.64B
Revenue(TTM)1.62B
Net Income(TTM)321.54M
Analysts77.33
Price Target141.89 (16.33%)
Short Float %2.83%
Short Ratio4.71
Dividend
Industry RankSector 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
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)1.02%
PT rev (3m)12.29%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.14%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 20.92
Fwd PE 17.75
P/S 2.25
P/FCF 8.5
P/OCF 7.04
P/B 2.76
P/tB 19.17
EV/EBITDA 12.41
EPS(TTM)5.83
EY4.78%
EPS(NY)6.87
Fwd EY5.63%
FCF(TTM)14.35
FCFY11.77%
OCF(TTM)17.32
OCFY14.2%
SpS54.15
BVpS44.18
TBVpS6.36
PEG (NY)1.17
PEG (5Y)1.5
Graham Number76.13
Profitability
Industry RankSector 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 RankSector 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 4.14
F-Score7
WACC10.5%
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)13.2%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%9.35%
EPS Next Y17.94%
EPS Next 2Y14.94%
EPS Next 3Y13.06%
EPS Next 5Y8.35%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%5.47%
Revenue Next Year3.23%
Revenue Next 2Y4.67%
Revenue Next 3Y4.53%
Revenue Next 5Y4.88%
EBIT growth 1Y5.66%
EBIT growth 3Y43.96%
EBIT growth 5Y19.26%
EBIT Next Year41.46%
EBIT Next 3Y15.94%
EBIT Next 5Y11.42%
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 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.


What is the profitability of AZZ stock?

AZZ INC (AZZ) has a profitability rating of 7 / 10.


What are the PE and PB ratios of AZZ INC (AZZ) stock?

The Price/Earnings (PE) ratio for AZZ INC (AZZ) is 20.92 and the Price/Book (PB) ratio is 2.76.


Can you provide the financial health for AZZ stock?

The financial health rating of AZZ INC (AZZ) is 6 / 10.