AZZ

AZZNYSE:AZZ Stock Report

Market Cap

US$1.3b

7D

0.04%

1Y

45.9%

Updated

16 Sep, 2021

Data

Company Financials +
AZZ fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

AZZ Overview

AZZ Inc. provides galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally.

AZZ Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AZZ
Historical stock prices
Current Share PriceUS$52.02
52 Week HighUS$32.51
52 Week LowUS$57.85
Beta1.53
1 Month Change-0.59%
3 Month Change3.26%
1 Year Change45.92%
3 Year Change-1.01%
5 Year Change-21.66%
Change since IPO3,723.47%

Recent News & Updates

Aug 19
AZZ's (NYSE:AZZ) Returns On Capital Not Reflecting Well On The Business

AZZ's (NYSE:AZZ) Returns On Capital Not Reflecting Well On The Business

When researching a stock for investment, what can tell us that the company is in decline? A business that's potentially...

Jul 07
Should Shareholders Reconsider AZZ Inc.'s (NYSE:AZZ) CEO Compensation Package?

Should Shareholders Reconsider AZZ Inc.'s (NYSE:AZZ) CEO Compensation Package?

The results at AZZ Inc. ( NYSE:AZZ ) have been quite disappointing recently and CEO Tom Ferguson bears some...

Jul 05
AZZ (NYSE:AZZ) Has Affirmed Its Dividend Of US$0.17

AZZ (NYSE:AZZ) Has Affirmed Its Dividend Of US$0.17

The board of AZZ Inc. ( NYSE:AZZ ) has announced that it will pay a dividend on the 3rd of August, with investors...

Shareholder Returns

AZZUS ElectricalUS Market
7D0.04%-1.1%-0.6%
1Y45.9%47.9%33.6%

Return vs Industry: AZZ underperformed the US Electrical industry which returned 48.2% over the past year.

Return vs Market: AZZ exceeded the US Market which returned 33.7% over the past year.

Price Volatility

Is AZZ's price volatile compared to industry and market?
AZZ volatility
AZZ Beta1.53
Industry Beta1.34
Market Beta1

Stable Share Price: AZZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AZZ's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19563,883Tom Fergusonhttps://www.azz.com

AZZ Inc. provides galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally. The company operates through two segments, Infrastructure Solutions and Metal Coatings. The Metal Coatings segment offers hot dip galvanizing, powder coating, anodizing, plating, and other metal coating applications to the steel fabrication and other industries.

AZZ Fundamentals Summary

How do AZZ's earnings and revenue compare to its market cap?
AZZ fundamental statistics
Market CapUS$1.30b
Earnings (TTM)US$56.41m
Revenue (TTM)US$855.45m

23.1x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AZZ income statement (TTM)
RevenueUS$855.45m
Cost of RevenueUS$650.98m
Gross ProfitUS$204.47m
ExpensesUS$148.06m
EarningsUS$56.41m

Last Reported Earnings

May 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.20
Gross Margin23.90%
Net Profit Margin6.59%
Debt/Equity Ratio29.1%

How did AZZ perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is AZZ undervalued compared to its fair value and its price relative to the market?

13.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZZ ($52.02) is trading below our estimate of fair value ($59.94)

Significantly Below Fair Value: AZZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AZZ is good value based on its PE Ratio (23.1x) compared to the US Electrical industry average (23.7x).

PE vs Market: AZZ is poor value based on its PE Ratio (23.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AZZ is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AZZ is good value based on its PB Ratio (2x) compared to the US Electrical industry average (3x).


Future Growth

How is AZZ forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZZ's forecast earnings growth (10.1% per year) is above the savings rate (2%).

Earnings vs Market: AZZ's earnings (10.1% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: AZZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: AZZ's revenue (5.6% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: AZZ's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AZZ's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has AZZ performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZZ has a large one-off loss of $20.0M impacting its May 31 2021 financial results.

Growing Profit Margin: AZZ's current net profit margins (6.6%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: AZZ's earnings have declined by 11.8% per year over the past 5 years.

Accelerating Growth: AZZ's earnings growth over the past year (73.6%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: AZZ earnings growth over the past year (73.6%) exceeded the Electrical industry 22.9%.


Return on Equity

High ROE: AZZ's Return on Equity (8.8%) is considered low.


Financial Health

How is AZZ's financial position?


Financial Position Analysis

Short Term Liabilities: AZZ's short term assets ($334.9M) exceed its short term liabilities ($131.2M).

Long Term Liabilities: AZZ's short term assets ($334.9M) exceed its long term liabilities ($270.6M).


Debt to Equity History and Analysis

Debt Level: AZZ's debt to equity ratio (29.1%) is considered satisfactory.

Reducing Debt: AZZ's debt to equity ratio has reduced from 64.5% to 29.1% over the past 5 years.

Debt Coverage: AZZ's debt is well covered by operating cash flow (61.6%).

Interest Coverage: AZZ's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Dividend

What is AZZ current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AZZ's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: AZZ's dividend (1.31%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

Stable Dividend: AZZ's dividends per share have been stable in the past 10 years.

Growing Dividend: AZZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), AZZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AZZ's dividends in 3 years are forecast to be well covered by earnings (21.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Tom Ferguson (65 yo)

7.83yrs

Tenure

US$3,223,988

Compensation

Mr. Thomas E. Ferguson, also known as Tom, has been the Chief Executive Officer and President of AZZ incorporated since November 4, 2013. He served as Chief Executive Officer, FlexSteel Pipeline Technologi...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD3.22M) is about average for companies of similar size in the US market ($USD3.66M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AZZ's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: AZZ's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AZZ Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: AZZ Inc.
  • Ticker: AZZ
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: US$1.304b
  • Shares outstanding: 25.07m
  • Website: https://www.azz.com

Number of Employees


Location

  • AZZ Inc.
  • One Museum Place
  • Suite 500
  • Fort Worth
  • Texas
  • 76107
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:49
End of Day Share Price2021/09/16 00:00
Earnings2021/05/31
Annual Earnings2021/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.