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AZZ

NYSE:AZZ
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AZZ
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

AZZ Inc. provides galvanizing and metal coating services, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, and industrial markets. The last earnings update was 41 days ago. More info.


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AZZ Share Price and Events
7 Day Returns
5%
NYSE:AZZ
-4%
US Electrical
-3.4%
US Market
1 Year Returns
8.8%
NYSE:AZZ
2.9%
US Electrical
10%
US Market
AZZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AZZ (AZZ) 5% 9.5% -10.3% 8.8% -15.3% 4.4%
US Electrical -4% -3.8% -8% 2.9% 40.1% 25.6%
US Market -3.4% -0.6% -4.3% 10% 55.8% 96.7%
1 Year Return vs Industry and Market
  • AZZ outperformed the Electrical industry which returned 2.9% over the past year.
  • AZZ underperformed the Market in United States of America which returned 10% over the past year.
Price Volatility
AZZ
Industry
5yr Volatility vs Market

Value

 Is AZZ undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AZZ to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AZZ.

NYSE:AZZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AZZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.167 (1 + (1- 21%) (23.1%))
1.38
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.38 * 7.05%)
12.68%

Discounted Cash Flow Calculation for NYSE:AZZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AZZ is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AZZ DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 58.95 81.81 84.33 86.93 89.61
Source Analyst x1 Analyst x2 Est @ 3.08% Est @ 3.08% Est @ 3.08%
Present Value
Discounted (@ 12.68%)
52.32 64.43 58.94 53.92 49.33
Present value of next 5 years cash flows $278.94
NYSE:AZZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $89.61 × (1 + 2.95%) ÷ (12.68% – 2.95%)
$947.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $947.93 ÷ (1 + 12.68%)5
$521.79
NYSE:AZZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $278.94 + $521.79
$800.74
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $800.74 / 26.05
$30.74
NYSE:AZZ Discount to Share Price
Calculation Result
Value per share (USD) From above. $30.74
Current discount Discount to share price of $49.13
= -1 x ($49.13 - $30.74) / $30.74
-59.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AZZ is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AZZ's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AZZ's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AZZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-08-31) in USD $1.94
NYSE:AZZ Share Price ** NYSE (2018-11-16) in USD $49.13
United States of America Electrical Industry PE Ratio Median Figure of 29 Publicly-Listed Electrical Companies 15.24x
United States of America Market PE Ratio Median Figure of 2,977 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AZZ.

NYSE:AZZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AZZ Share Price ÷ EPS (both in USD)

= 49.13 ÷ 1.94

25.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AZZ is overvalued based on earnings compared to the US Electrical industry average.
  • AZZ is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does AZZ's expected growth come at a high price?
Raw Data
NYSE:AZZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
32.1%per year
United States of America Electrical Industry PEG Ratio Median Figure of 19 Publicly-Listed Electrical Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,096 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

NYSE:AZZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.38x ÷ 32.1%

0.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AZZ is good value based on expected growth next year.
Price based on value of assets
What value do investors place on AZZ's assets?
Raw Data
NYSE:AZZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-08-31) in USD $22.49
NYSE:AZZ Share Price * NYSE (2018-11-16) in USD $49.13
United States of America Electrical Industry PB Ratio Median Figure of 58 Publicly-Listed Electrical Companies 1.47x
United States of America Market PB Ratio Median Figure of 4,980 Publicly-Listed Companies 1.85x
NYSE:AZZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AZZ Share Price ÷ Book Value per Share (both in USD)

= 49.13 ÷ 22.49

2.18x

* Primary Listing of AZZ.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AZZ is overvalued based on assets compared to the US Electrical industry average.
X
Value checks
We assess AZZ's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. AZZ has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AZZ expected to grow at an attractive rate?
  • AZZ's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • AZZ's earnings growth is expected to exceed the United States of America market average.
  • AZZ's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AZZ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AZZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 32.1%
NYSE:AZZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 7.9%
United States of America Electrical Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Electrical Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AZZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AZZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-02-29 1,018 124 79 2
2019-02-28 954 99 56 3
NYSE:AZZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-08-31 894 94 50
2018-05-31 867 82 49
2018-02-28 810 79 45
2017-11-30 794 93 34
2017-08-31 814 64 51
2017-05-31 818 86 51
2017-02-28 864 111 61
2016-11-30 883 97 64
2016-08-31 897 139 71
2016-05-31 911 149 78
2016-02-29 889 144 76
2015-11-30 868 139 77

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AZZ's earnings are expected to grow significantly at over 20% yearly.
  • AZZ's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AZZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from AZZ Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AZZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-02-29 3.02 3.05 2.98 2.00
2019-02-28 2.18 2.21 2.14 3.00
NYSE:AZZ Past Financials Data
Date (Data in USD Millions) EPS *
2018-08-31 1.94
2018-05-31 1.88
2018-02-28 1.74
2017-11-30 1.31
2017-08-31 1.95
2017-05-31 1.97
2017-02-28 2.36
2016-11-30 2.46
2016-08-31 2.73
2016-05-31 3.01
2016-02-29 2.93
2015-11-30 2.99

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if AZZ will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess AZZ's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AZZ has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AZZ performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AZZ's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AZZ's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • AZZ's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • AZZ's 1-year earnings growth is negative, it can't be compared to the US Electrical industry average.
Earnings and Revenue History
AZZ's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AZZ Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AZZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-08-31 893.84 50.28 123.10
2018-05-31 867.38 48.83 119.71
2018-02-28 810.43 45.17 112.06
2017-11-30 794.04 33.95 107.56
2017-08-31 813.99 50.76 103.08
2017-05-31 818.46 51.14 103.66
2017-02-28 863.54 61.26 105.12
2016-11-30 883.09 63.82 108.78
2016-08-31 897.42 70.73 109.73
2016-05-31 910.88 77.81 109.82
2016-02-29 889.40 75.54 107.42
2015-11-30 867.89 77.00 111.68
2015-08-31 850.28 73.42 113.49
2015-05-31 829.45 69.94 105.55
2015-02-28 819.69 65.62 107.97
2014-11-30 815.39 58.90 103.44
2014-08-31 788.31 57.38 102.61
2014-05-31 784.67 59.98 109.65
2014-02-28 751.72 59.60 100.19
2013-11-30 711.10 62.59 92.15
2013-08-31 663.02 59.51 83.03
2013-05-31 626.63 59.02 72.62
2013-02-28 570.59 60.46 66.19
2012-11-30 553.83 58.87 61.27
2012-08-31 520.65 53.52 54.70
2012-05-31 481.92 47.26 50.67
2012-02-29 469.11 40.74 48.86
2011-11-30 446.17 38.32 47.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AZZ has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AZZ used its assets less efficiently than the US Electrical industry average last year based on Return on Assets.
  • AZZ's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess AZZ's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AZZ has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AZZ's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AZZ's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AZZ is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AZZ's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AZZ's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AZZ Company Filings, last reported 2 months ago.

NYSE:AZZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-08-31 585.93 295.68 9.20
2018-05-31 576.40 322.15 13.94
2018-02-28 565.20 300.90 20.85
2017-11-30 543.78 306.85 10.65
2017-08-31 549.09 301.81 3.55
2017-05-31 538.71 299.76 6.34
2017-02-28 533.14 271.43 11.30
2016-11-30 519.30 311.15 13.48
2016-08-31 510.86 301.38 15.91
2016-05-31 502.89 324.59 12.08
2016-02-29 484.37 325.62 40.19
2015-11-30 468.57 321.86 17.60
2015-08-31 447.61 360.20 20.23
2015-05-31 437.26 367.09 45.76
2015-02-28 420.05 337.85 22.53
2014-11-30 415.48 378.62 43.95
2014-08-31 402.97 394.41 41.63
2014-05-31 391.94 400.39 25.65
2014-02-28 375.91 405.62 27.57
2013-11-30 374.50 436.55 50.95
2013-08-31 358.33 452.49 41.98
2013-05-31 346.33 453.43 41.64
2013-02-28 333.93 210.71 55.60
2012-11-30 327.37 210.71 49.51
2012-08-31 315.80 210.71 68.72
2012-05-31 300.33 210.71 139.32
2012-02-29 287.61 225.00 143.30
2011-11-30 277.90 225.00 160.10
  • AZZ's level of debt (50.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (126.2% vs 50.5% today).
  • Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess AZZ's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AZZ has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.38%
Current annual income from AZZ dividends. Estimated to be 1.38% next year.
If you bought $2,000 of AZZ shares you are expected to receive $28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AZZ's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.38%).
  • AZZ's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AZZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Electrical Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1977 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AZZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-02-29 0.68 1.00
2019-02-28 0.68 1.00
NYSE:AZZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-05 0.680 1.479
2018-06-29 0.680 1.288
2018-04-06 0.680 1.533
2018-01-19 0.680 1.559
2017-10-03 0.680 1.433
2017-07-10 0.680 1.376
2017-04-07 0.680 1.205
2017-01-20 0.680 1.160
2016-09-30 0.680 1.133
2016-01-20 0.600 1.039
2016-01-08 0.600 1.202
2015-07-01 0.600 1.125
2015-04-07 0.600 1.232
2015-01-15 0.600 1.355
2014-10-06 0.600 1.339
2014-06-27 0.560 1.235
2014-04-09 0.560 1.272
2014-01-17 0.560 1.292
2013-09-27 0.560 1.251
2013-06-28 0.560 1.459
2013-04-08 0.560 1.316
2013-01-18 0.560 1.245
2012-09-27 0.560 1.503
2012-06-28 0.500 1.543
2012-01-20 0.500 1.955
2011-09-29 0.500 2.310
2011-06-30 0.500 2.184
2011-04-07 0.500 2.323
2011-01-21 0.500 2.340
2010-09-30 0.500 2.604
2010-06-25 0.500 2.435
2010-04-01 0.500 2.573
2010-01-15 0.500 3.120

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, AZZ has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but AZZ only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of AZZ's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess AZZ's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AZZ afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AZZ has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AZZ's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Ferguson
COMPENSATION $1,716,875
AGE 62
TENURE AS CEO 5 years
CEO Bio

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 Technologies, Inc. from 2013 to 2013. Mr. Ferguson served as a Special Advisor to Chief Executive Officer at Flowserve Corp. from January 2012 to December 31, 2012. He served as a Senior Vice President of Flowserve Corp. from December 2006 to January 2012 and its President of Flow Solutions Group until January 2012. He served as the President of Pump Division at Flowserve Corp. since March 31, 2003 and its Senior Vice President since December 2006. Mr. Ferguson served as the President of Flow Solutions Division (FSD) of Flowserve Corp. from 2000 to 2002 and served as its Vice President from 1999 to December 2006. He joined Flowserve Corp. in 1987 and served as its Vice President and General Manager, FSD North America from 1999 to 2000. Mr. Ferguson served in a number of key domestic and international management positions. He served as Corporate Vice President of Flowserve Corp. Mr. Ferguson served as the Vice President of Marketing and Technology for the FSD/Seal Division from 1997 to 1999 and numerous marketing, technology and sales positions in both BW/IP Pump and Seal Divisions from 1987 to 1997. His career with Flowserve and one of its predecessor companies, BW/IP spans 16 years. He served for nine years in sales, marketing, technical and general management roles for Flowserve Seals. He also served for six years in sales and marketing in the Pump Division of BW/IP. He also held key positions in the oilfield services sector, including 10 years in sales, marketing and technical roles. Mr. Ferguson has been a Director of AZZ incorporated since November 4, 2013. He served as a Member of the Board of Directors at Hydraulic Institute. Mr. Ferguson holds a Bachelor of Science degree in Industrial Distribution and Technology from Texas A&M University.

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year.
  • Tom's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AZZ management team in years:

4.5
Average Tenure
56.5
Average Age
  • The tenure for the AZZ management team is about average.
Management Team

Tom Ferguson

TITLE
President CEO & Director
COMPENSATION
$2M
AGE
62
TENURE
5 yrs

Paul Fehlman

TITLE
Senior VP of Finance & CFO
COMPENSATION
$773K
AGE
54
TENURE
4.5 yrs

Tara Mackey

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
$516K
AGE
48
TENURE
4.5 yrs

Chris Bacius

TITLE
Vice President of Corporate Development
COMPENSATION
$466K
AGE
57
TENURE
4.8 yrs

Tim Pendley

TITLE
Strategic Advisor to Chief Executive Officer
COMPENSATION
$619K
AGE
56
TENURE
0.6 yrs

James Byelick

TITLE
Vice President & Chief Accounting Officer
AGE
61
TENURE
1.3 yrs

Matt Emery

TITLE
VP, Chief Information & Human Resource Officer
COMPENSATION
$461K
AGE
50
TENURE
5.8 yrs

Ken Lavelle

TITLE
President & GM of Electrical Platform
AGE
61
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the AZZ board of directors in years:

4.3
Average Tenure
63
Average Age
  • The tenure for the AZZ board of directors is about average.
Board of Directors

Kevern Joyce

TITLE
Chairman of the Board
COMPENSATION
$453K
AGE
72
TENURE
5.8 yrs

Tom Ferguson

TITLE
President CEO & Director
COMPENSATION
$2M
AGE
62
TENURE
5 yrs

Dan Berce

TITLE
Independent Director
COMPENSATION
$344K
AGE
64
TENURE
18.8 yrs

Dan Feehan

TITLE
Independent Director
COMPENSATION
$346K
AGE
67
TENURE
18.8 yrs

Steve Pirnat

TITLE
Independent Director
COMPENSATION
$340K
AGE
66
TENURE
4.3 yrs

Steve Purvis

TITLE
Independent Director
COMPENSATION
$340K
AGE
54
TENURE
3.3 yrs

Paul Eisman

TITLE
Independent Director
COMPENSATION
$340K
AGE
63
TENURE
2.8 yrs

Venita McCellon-Allen

TITLE
Independent Director
COMPENSATION
$330K
AGE
58
TENURE
2.7 yrs

Ed McGough

TITLE
Independent Director
COMPENSATION
$330K
AGE
57
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AZZ insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Oct 18 Buy Thomas Ferguson Individual 22. Oct 18 22. Oct 18 5,000 $45.77 $228,835
22. Oct 18 Buy Paul Fehlman Individual 22. Oct 18 22. Oct 18 1,000 $45.48 $45,476
X
Management checks
We assess AZZ's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AZZ has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Is AZZ Inc's (NYSE:AZZ) CEO Paid Enough Relative To Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Tom Ferguson's Compensation Compare With Similar Sized Companies. … Most shareholders would consider it a positive that Tom Ferguson takes less compensation than the CEOs of most similar size companies, leaving more for shareholders.

Simply Wall St -

Want To Invest In AZZ Inc (NYSE:AZZ)? Here's How It Performed Lately

Analyzing AZZ Inc's (NYSE:AZZ) track record of past performance is a valuable exercise for investors. … Today I will assess AZZ's recent performance announced on 31 August 2018 and compare these figures to its long-term trend and industry movements. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -5.4%, indicating the rate at which AZZ is growing has slowed down

Simply Wall St -

What You Must Know About AZZ Inc's (NYSE:AZZ) Financial Strength

However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

3 Days Left Until AZZ Inc (NYSE:AZZ) Trades Ex-Dividend,

AZZ Inc (NYSE:AZZ) will be distributing its dividend of US$0.17 per share on the 30 October 2018, and will start trading ex-dividend in 3 days time on the 15 October 2018. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Should You Be Tempted To Sell AZZ Inc (NYSE:AZZ) Because Of Its PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While AZZ might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will break down what the P/E ratio is, how to interpret it and what to watch out for

Simply Wall St -

What Can We Expect for AZZ Inc (NYSE:AZZ) Moving Forward?

operates in the electrical equipment industry. … During periods of prosperity, when businesses have excess cash, they are comfortable expanding their capital budgets and spending on electrical equipment … However, when economic conditions are very challenging, businesses may pull back dramatically on equipment orders and try to repair or replace equipment during regular, seasonal or cyclical slack periods

Simply Wall St -

AZZ Inc (NYSE:AZZ): Risks You Need To Consider Before Buying

Generally, an investor should consider two types of risk that impact the market value of AZZ. … The second risk is market-wide, which arises from investing in the stock market. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.

Simply Wall St -

How AZZ Inc's (NYSE:AZZ) Earnings Growth Stacks Up Against The Industry

When AZZ Inc (NYSE:AZZ) announced its most recent earnings (28 February 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Was AZZ's recent earnings decline worse than the long-term trend and the industry. … AZZ's trailing twelve-month earnings (from 28 February 2018) of US$45.17m has

Simply Wall St -

Is AZZ Inc's (NYSE:AZZ) Balance Sheet Strong Enough To Weather A Storm?

Investors are always looking for growth in small-cap stocks like AZZ Inc (NYSE:AZZ), with a market cap of US$1.16b. … However, an important fact which most ignore is: how financially healthy is the business? … since poor capital management may bring about bankruptcies,

Simply Wall St -

Will AZZ Inc (NYSE:AZZ) Continue To Underperform Its Industry?

and want to begin learning the link between AZZ Inc (NYSE:AZZ)’s return fundamentals and stock market performance. … Knowing these components can change your views on AZZ's below-average returns. … I will take you through how metrics such as financial leverage impact ROE which may affect the overall sustainability of AZZ's returns

Simply Wall St -

Company Info

Map
Description

AZZ Inc. provides galvanizing and metal coating services, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, and industrial markets. The company operates through two segments, Energy Segment and Metal Coatings. The Energy segment provides specialized products and services designed to support industrial, nuclear, and electrical applications. This segment offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, nuclear safety-related equipment, and tubular products to multi-national companies and small independent companies. This segment sells its products through manufacturers’ representatives, distributors, agents, and internal sales force. The Metal Coatings segment offers hot dip galvanizing and other metal coating applications to the steel fabrication industry. This segment serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. As of February 28, 2018, the company operated 45 metal coating plants located in various locations in the United States and Canada. AZZ Inc. was founded in 1956 and is headquartered in Fort Worth, Texas.

Details
Name: AZZ Inc.
AZZ
Exchange: NYSE
Founded: 1956
$1,279,848,389
26,050,242
Website: http://www.azz.com
Address: AZZ Inc.
One Museum Place,
Suite 500,
Fort Worth,
Texas, 76107,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AZZ Common Stock New York Stock Exchange US USD 14. Dec 1972
DB AI7 Common Stock Deutsche Boerse AG DE EUR 14. Dec 1972
Number of employees
Current staff
Staff numbers
3,650
AZZ employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/19 00:44
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/10/29
Last earnings filing: 2018/10/09
Last earnings reported: 2018/08/31
Last annual earnings reported: 2018/02/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.