AZZ INC (AZZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZZ - US0024741045 - Common Stock
108.13 USD
+0.96 (+0.9%)
We assign a fundamental rating of 5 out of 10 to AZZ. AZZ was compared to 41 industry peers in the Building Products industry. Both the profitability and the financial health of AZZ get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years AZZ always reported a positive cash flow from operatings.
1.2 Ratios
AZZ has a Return On Assets of 14.11%. This is amongst the best in the industry. AZZ outperforms 87.80% of its industry peers.
AZZ has a better Return On Equity (24.10%) than 75.61% of its industry peers.
AZZ's Return On Invested Capital of 9.24% is in line compared to the rest of the industry. AZZ outperforms 56.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AZZ is below the industry average of 12.52%.
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 has a Profit Margin of 19.69%. This is amongst the best in the industry. AZZ outperforms 100.00% of its industry peers.
AZZ's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.10%, AZZ perfoms like the industry average, outperforming 58.54% of the companies in the same 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.
AZZ's Gross Margin has improved in the last couple of years.
| 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.
AZZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AZZ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.80 indicates that AZZ is not in any danger for bankruptcy at the moment.
AZZ has a Altman-Z score of 3.80. This is comparable to the rest of the industry: AZZ outperforms 51.22% of its industry peers.
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.
The Debt to FCF ratio of AZZ (1.42) is better than 82.93% of its industry peers.
AZZ has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.8 |
ROIC/WACC0.93
WACC9.89%
2.3 Liquidity
AZZ has a Current Ratio of 1.73. This is a normal value and indicates that AZZ is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.73, AZZ is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
A Quick Ratio of 1.25 indicates that AZZ should not have too much problems paying its short term obligations.
The Quick ratio of AZZ (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.15% over the past year.
Measured over the past years, AZZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.92% on average per year.
The Revenue has been growing slightly by 1.55% 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)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
Based on estimates for the next years, AZZ will show a small growth in Earnings Per Share. The EPS will grow by 7.12% on average per year.
Based on estimates for the next years, AZZ will show a small growth in Revenue. The Revenue will grow by 4.22% on average per year.
EPS Next Y16.56%
EPS Next 2Y13.76%
EPS Next 3Y12.07%
EPS Next 5Y7.12%
Revenue Next Year2.98%
Revenue Next 2Y4.07%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
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.
4. Valuation
4.1 Price/Earnings Ratio
AZZ is valuated rather expensively with a Price/Earnings ratio of 18.97.
AZZ's Price/Earnings is on the same level as the industry average.
AZZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.56.
With a Price/Forward Earnings ratio of 16.07, AZZ is valued correctly.
65.85% of the companies in the same industry are more expensive than AZZ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, AZZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZZ is on the same level as its industry peers.
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 | 7.98 | ||
| 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.
The decent profitability rating of AZZ 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)1.15
PEG (5Y)1.36
EPS Next 2Y13.76%
EPS Next 3Y12.07%
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 0.72.
Compared to an average S&P500 Dividend Yield of 1.87, 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 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
6.77% 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 2Y13.76%
EPS Next 3Y12.07%
NYSE:AZZ (12/15/2025, 2:59:32 PM)
108.13
+0.96 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.07%
Inst Owner Change-1.95%
Ins Owners1.49%
Ins Owner Change-2.85%
Market Cap3.25B
Revenue(TTM)1.59B
Net Income(TTM)314.07M
Analysts77.33
Price Target126.37 (16.87%)
Short Float %3.36%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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%
PT rev (3m)-0.08%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.07 | ||
| P/S | 2.04 | ||
| P/FCF | 7.98 | ||
| P/OCF | 6.45 | ||
| P/B | 2.49 | ||
| P/tB | 19.43 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)5.7
EY5.27%
EPS(NY)6.73
Fwd EY6.22%
FCF(TTM)13.54
FCFY12.52%
OCF(TTM)16.75
OCFY15.5%
SpS53.05
BVpS43.35
TBVpS5.56
PEG (NY)1.15
PEG (5Y)1.36
Graham Number74.56
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%
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 | 0.44 | ||
| 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 | 3.8 |
F-Score7
WACC9.89%
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)15.15%
EPS 3Y15.67%
EPS 5Y13.92%
EPS Q2Q%13.14%
EPS Next Y16.56%
EPS Next 2Y13.76%
EPS Next 3Y12.07%
EPS Next 5Y7.12%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y44.25%
Revenue growth 5Y8.24%
Sales Q2Q%2.02%
Revenue Next Year2.98%
Revenue Next 2Y4.07%
Revenue Next 3Y4.19%
Revenue Next 5Y4.22%
EBIT growth 1Y3.55%
EBIT growth 3Y43.96%
EBIT growth 5Y19.26%
EBIT Next Year41.98%
EBIT Next 3Y16.43%
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%
AZZ INC / AZZ FAQ
Can you provide the ChartMill fundamental rating for AZZ INC?
ChartMill assigns a fundamental rating of 5 / 10 to AZZ.
What is the valuation status for 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 is the valuation of AZZ INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AZZ INC (AZZ) is 18.97 and the Price/Book (PB) ratio is 2.49.
What is the earnings growth outlook for AZZ INC?
The Earnings per Share (EPS) of AZZ INC (AZZ) is expected to grow by 16.56% in the next year.