AZZ INC (AZZ) Stock Fundamental Analysis
USA - NYSE:AZZ - US0024741045 - Common Stock
99.25 USD
-0.47 (-0.47%)
99.25 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AZZ. AZZ was compared to 41 industry peers in the Building Products industry. AZZ has an average financial health and profitability rating. 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.
In the past year AZZ had a positive cash flow from operations.
Of the past 5 years AZZ 4 years were profitable.
In the past 5 years AZZ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.11%, AZZ belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
AZZ has a better Return On Equity (24.10%) than 73.17% of its industry peers.
AZZ has a Return On Invested Capital of 9.24%. This is comparable to the rest of the industry: AZZ outperforms 53.66% of its industry peers.
AZZ had an Average Return On Invested Capital over the past 3 years of 8.28%. This is below the industry average of 12.70%.
The last Return On Invested Capital (9.24%) for AZZ is above the 3 year average (8.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.11% | ||
| ROE | 24.1% | ||
| ROIC | 9.24% |
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 19.69% 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.
AZZ has a Operating Margin (15.10%) which is comparable to the rest of the industry.
AZZ's Operating Margin has improved in the last couple of years.
AZZ's Gross Margin of 24.19% is on the low side compared to the rest of the industry. AZZ is outperformed by 68.29% of its industry peers.
In the last couple of years the Gross Margin of AZZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.1% | ||
| PM (TTM) | 19.69% | ||
| GM | 24.19% |
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
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.
Compared to 5 years ago, AZZ has more shares outstanding
AZZ has a better debt/assets ratio than last year.
2.2 Solvency
AZZ has an Altman-Z score of 3.65. This indicates that AZZ is financially healthy and has little risk of bankruptcy at the moment.
AZZ has a Altman-Z score (3.65) which is comparable to the rest of the industry.
AZZ has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.42, AZZ belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that AZZ is not too dependend on debt financing.
AZZ's Debt to Equity ratio of 0.44 is fine compared to the rest of the industry. AZZ outperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.65 |
ROIC/WACC0.96
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.73 indicates that AZZ should not have too much problems paying its short term obligations.
AZZ's Current ratio of 1.73 is on the low side compared to the rest of the industry. AZZ is outperformed by 63.41% of its industry peers.
A Quick Ratio of 1.25 indicates that AZZ should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, AZZ is in line with its industry, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
AZZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.15%, which is quite good.
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 1.55% in the past year.
The Revenue has been growing by 8.24% on average over the past years. This is quite good.
EPS 1Y (TTM)15.15%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%13.14%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%2.02%
3.2 Future
AZZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.29% yearly.
The Revenue is expected to grow by 4.45% on average over the next years.
EPS Next Y16.69%
EPS Next 2Y13.91%
EPS Next 3Y11.78%
EPS Next 5Y7.29%
Revenue Next Year4.53%
Revenue Next 2Y4.43%
Revenue Next 3Y4.34%
Revenue Next 5Y4.45%
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.
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 17.41.
63.41% of the companies in the same industry are more expensive than AZZ, based on the Price/Earnings ratio.
AZZ is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.71 indicates a correct valuation of AZZ.
Based on the Price/Forward Earnings ratio, AZZ is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, AZZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZZ is valued a bit cheaper than 68.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AZZ is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AZZ may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)1.25
EPS Next 2Y13.91%
EPS Next 3Y11.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, AZZ is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.24, AZZ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, AZZ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.26%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
6.77% 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.
DP6.77%
EPS Next 2Y13.91%
EPS Next 3Y11.78%
99.25
-0.47 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change0.03%
Ins Owners1.49%
Ins Owner Change-2.54%
Market Cap2.98B
Analysts77.33
Price Target127.39 (28.35%)
Short Float %2.93%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.84
Dividend Growth(5Y)4.26%
DP6.77%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.42%
Min EPS beat(2)-2.53%
Max EPS beat(2)11.37%
EPS beat(4)2
Avg EPS beat(4)4.51%
Min EPS beat(4)-2.53%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)10.27%
EPS beat(12)9
Avg EPS beat(12)9.13%
EPS beat(16)12
Avg EPS beat(16)9.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.61%
Min Revenue beat(2)-4.16%
Max Revenue beat(2)-3.05%
Revenue beat(4)1
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-5.47%
Max Revenue beat(4)0.82%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-0.83%
Revenue beat(16)5
Avg Revenue beat(16)-8.32%
PT rev (1m)0.73%
PT rev (3m)20.23%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 14.71 | ||
| P/S | 1.87 | ||
| P/FCF | 7.33 | ||
| P/OCF | 5.92 | ||
| P/B | 2.29 | ||
| P/tB | 17.84 | ||
| EV/EBITDA | 10.97 |
EPS(TTM)5.7
EY5.74%
EPS(NY)6.75
Fwd EY6.8%
FCF(TTM)13.54
FCFY13.64%
OCF(TTM)16.75
OCFY16.88%
SpS53.05
BVpS43.35
TBVpS5.56
PEG (NY)1.04
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.11% | ||
| ROE | 24.1% | ||
| ROCE | 12.03% | ||
| ROIC | 9.24% | ||
| ROICexc | 9.25% | ||
| ROICexgc | 21.39% | ||
| OM | 15.1% | ||
| PM (TTM) | 19.69% | ||
| GM | 24.19% | ||
| FCFM | 25.53% |
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%
ROICexcg growth 3Y19.31%
ROICexcg 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 | 0.44 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 112.73% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 154.28% | ||
| Profit Quality | 129.62% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.65 |
F-Score7
WACC9.62%
ROIC/WACC0.96
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)15.15%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%13.14%
EPS Next Y16.69%
EPS Next 2Y13.91%
EPS Next 3Y11.78%
EPS Next 5Y7.29%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%2.02%
Revenue Next Year4.53%
Revenue Next 2Y4.43%
Revenue Next 3Y4.34%
Revenue Next 5Y4.45%
EBIT growth 1Y3.55%
EBIT growth 3Y43.96%
EBIT growth 5Y19.26%
EBIT Next Year44.43%
EBIT Next 3Y15.75%
EBIT Next 5Y11.47%
FCF growth 1Y911.76%
FCF growth 3Y29.01%
FCF growth 5Y4.08%
OCF growth 1Y314.91%
OCF growth 3Y42.7%
OCF growth 5Y11.92%