Market Cap
US$866.6m
Last Updated
2020/07/03 00:05 UTC
Data Sources
Company Financials +
Executive Summary
AZZ Inc. provides galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, and industrial markets.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has AZZ's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AZZ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.8%
AZZ
3.2%
US Electrical
1.6%
US Market
1 Year Return
-28.1%
AZZ
2.8%
US Electrical
4.8%
US Market
Return vs Industry: AZZ underperformed the US Electrical industry which returned 2.8% over the past year.
Return vs Market: AZZ underperformed the US Market which returned 4.8% over the past year.
Shareholder returns
| AZZ | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 3.2% | 1.6% |
| 30 Day | -1.5% | 1.4% | 2.3% |
| 90 Day | 31.4% | 35.4% | 29.5% |
| 1 Year | -26.8%-28.1% | 5.0%2.8% | 7.1%4.8% |
| 3 Year | -28.3%-31.6% | 20.6%13.5% | 37.1%28.1% |
| 5 Year | -31.1%-35.5% | 39.3%25.7% | 67.2%48.6% |
Price Volatility Vs. Market
How volatile is AZZ's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Is There An Opportunity With AZZ Inc.'s (NYSE:AZZ) 42% Undervaluation?2 months ago | Simply Wall St
What Can We Learn From AZZ Inc.’s (NYSE:AZZ) Investment Returns?2 months ago | Simply Wall St
Is AZZ Inc. (NYSE:AZZ) Potentially Undervalued?Valuation
Is AZZ undervalued compared to its fair value and its price relative to the market?
15.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AZZ ($33.13) is trading below our estimate of fair value ($39.1)
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 poor value based on its PE Ratio (18x) compared to the Electrical industry average (18x).
PE vs Market: AZZ is poor value based on its PE Ratio (18x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: AZZ is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: AZZ is good value based on its PB Ratio (1.4x) compared to the US Electrical industry average (2.2x).
Next Steps
Future Growth
How is AZZ forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
21.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AZZ's forecast earnings growth (21.6% per year) is above the savings rate (2.2%).
Earnings vs Market: AZZ's earnings (21.6% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AZZ's revenue (0.8% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AZZ's revenue (0.8% 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 (13.8%).
Next Steps
Past Performance
How has AZZ performed over the past 5 years?
-7.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AZZ has a large one-off loss of $27.8M impacting its March 1 2010 financial results.
Growing Profit Margin: AZZ's current net profit margins (4.5%) are lower than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: AZZ's earnings have declined by -7% per year over the past 5 years.
Accelerating Growth: AZZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AZZ had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Electrical industry average (-14.4%).
Return on Equity
High ROE: AZZ's Return on Equity (7.6%) is considered low.
Next Steps
Financial Health
How is AZZ's financial position?
Financial Position Analysis
Short Term Liabilities: AZZ's short term assets ($354.6M) exceed its short term liabilities ($280.6M).
Long Term Liabilities: AZZ's short term assets ($354.6M) exceed its long term liabilities ($158.9M).
Debt to Equity History and Analysis
Debt Level: AZZ's debt to equity ratio (32%) is considered satisfactory.
Reducing Debt: AZZ's debt to equity ratio has reduced from 80.5% to 32% over the past 5 years.
Debt Coverage: AZZ's debt is well covered by operating cash flow (71.4%).
Interest Coverage: AZZ's interest payments on its debt are well covered by EBIT (8x coverage).
Balance Sheet
Next Steps
Dividend
What is AZZ current dividend yield, its reliability and sustainability?
2.05%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AZZ's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: AZZ's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (4.51%).
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 (36.9%), 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 (19.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Tom Ferguson (64yo)
6.67yrs
Tenure
US$3,412,204
Compensation
Mr. Thomas E. Ferguson, also known as Tom, has been the Chief Executive Officer and President of AZZ incorporated since November 4, 2013. He served as Chief Executive Officer, FlexSteel Pipeline Technologi ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD3.41M) is about average for companies of similar size in the US market ($USD3.16M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.67yrs | US$3.41m | 0.38% $3.3m | |
| Chief Legal Officer & Corporate Secretary | 6.17yrs | US$976.38k | 0.040% $347.0k | |
| Consultant | 0.17yr | US$1.25m | 0.062% $539.8k | |
| President & GM of Electrical Platform | 2.92yrs | US$1.24m | 0.016% $134.6k | |
| President & GM of AZZ Industrial Group | 3.5yrs | US$2.13m | 0.033% $283.5k | |
| Interim CFO | 0.17yr | no data | no data | |
| Chief Information & Human Resource Officer | 7.5yrs | US$774.98k | 0.032% $280.6k | |
| Vice President of Marketing & Communications | no data | no data | no data | |
| Vice President of Corporate Development | 6.5yrs | US$466.47k | 0.041% $354.0k | |
| Senior Vice President of Surface Technologies & Galvabar | 2.5yrs | no data | 0.0086% $74.9k |
3.5yrs
Average Tenure
56yo
Average Age
Experienced Management: AZZ's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.67yrs | US$3.41m | 0.38% $3.3m | |
| Independent Director | 20.5yrs | US$172.91k | 0.25% $2.1m | |
| Independent Chairman of the Board | 1.5yrs | US$221.56k | 0.25% $2.2m | |
| Independent Director | 23.5yrs | US$170.68k | 0.24% $2.1m | |
| Independent Director | 4.33yrs | US$169.54k | 0.048% $418.3k | |
| Independent Director | 5yrs | US$170.00k | 0.036% $316.2k | |
| Independent Director | 4.5yrs | US$170.00k | 0.041% $352.1k | |
| Independent Director | 3.5yrs | US$166.82k | 0.023% $198.4k |
4.8yrs
Average Tenure
64.5yo
Average Age
Experienced Board: AZZ's board of directors are considered experienced (4.8 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
AZZ Inc.'s company bio, 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$866.646m
- Shares outstanding: 26.16m
- Website: https://www.azz.com
Number of Employees
Location
- AZZ Inc.
- One Museum Place
- Suite 500
- Fort Worth
- Texas
- 76107
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AZZ | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1972 |
| AI7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
Biography
AZZ Inc. provides galvanizing and metal coating solutions, 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 and Metal Coatings. The Energy segment provides specialized products and services designed to support industrial, electrical, and nuclear applications. It 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 internal sales force, manufacturers’ representatives, distributors, and agents. The Metal Coatings segment offers hot dip galvanizing, powder coating, anodizing, plating, and other metal coating applications to the steel fabrication and other industries. It 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 29, 2020, the company operated forty galvanizing plants, one galvabar plant, and seven surface technologies plants located in various locations in the United States and Canada. AZZ Inc. was founded in 1956 and is headquartered in Fort Worth, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/03 00:05 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/02/29 |
| Annual Earnings | 2020/02/29 |
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.