NYSE:AZZ

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet average 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 is less volatile than 75% 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.


Market Performance


7 Day Return

-2.6%

AZZ

-1.7%

US Electrical

0.3%

US Market


1 Year Return

12.8%

AZZ

48.5%

US Electrical

21.1%

US Market

Return vs Industry: AZZ underperformed the US Electrical industry which returned 44.9% over the past year.

Return vs Market: AZZ underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

AZZIndustryMarket
7 Day-2.6%-1.7%0.3%
30 Day4.1%15.1%3.3%
90 Day40.6%32.0%14.2%
1 Year15.1%12.8%51.5%48.5%23.8%21.1%
3 Year9.0%3.6%69.1%59.4%45.0%35.4%
5 Year7.0%-0.6%141.2%122.3%127.7%102.3%

Long-Term 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

Valuation

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

99.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AZZ ($48.76) is trading above our estimate of fair value ($38.96)

Significantly Below Fair Value: AZZ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AZZ is poor value based on its PE Ratio (99.4x) compared to the US Electrical industry average (31.9x).

PE vs Market: AZZ is poor value based on its PE Ratio (99.4x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: AZZ is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AZZ is good value based on its PB Ratio (2x) compared to the US Electrical industry average (4.6x).


Next Steps

Future Growth

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

52.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZZ's forecast earnings growth (52.6% per year) is above the savings rate (2%).

Earnings vs Market: AZZ's earnings (52.6% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AZZ's revenue (5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: AZZ's revenue (5% 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 (10.4%).


Next Steps

Past Performance

How has AZZ performed over the past 5 years?

-15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZZ has a large one-off loss of $48.1M impacting its November 30 2020 financial results.

Growing Profit Margin: AZZ's current net profit margins (1.4%) are lower than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: AZZ's earnings have declined by 15.5% 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 (-81%) over the past year, making it difficult to compare to the Electrical industry average (-18.5%).


Return on Equity

High ROE: AZZ's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is AZZ's financial position?


Financial Position Analysis

Short Term Liabilities: AZZ's short term assets ($324.7M) exceed its short term liabilities ($123.5M).

Long Term Liabilities: AZZ's short term assets ($324.7M) exceed its long term liabilities ($262.3M).


Debt to Equity History and Analysis

Debt Level: AZZ's debt to equity ratio (29.2%) is considered satisfactory.

Reducing Debt: AZZ's debt to equity ratio has reduced from 68.7% to 29.2% over the past 5 years.

Debt Coverage: AZZ's debt is well covered by operating cash flow (72.6%).

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?

1.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AZZ's dividend (1.39%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: AZZ's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (3.85%).


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 high payout ratio (138.6%), AZZ's dividend payments are not 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 (23.6% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Tom Ferguson (64 yo)

7.17yrs

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 ($USD3.41M) is about average for companies of similar size in the US market ($USD3.88M).

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

NamePositionTenureCompensationOwnership
Thomas Ferguson
President7.17yrsUS$3.41m0.43%
$ 5.4m
Tara Mackey
Chief Legal Officer & Corporate Secretary6.67yrsUS$976.38k0.044%
$ 542.7k
Ken Lavelle
President & GM of Electrical Platform3.42yrsUS$1.24m0.041%
$ 501.8k
Gary Hill
Chief Operating Officer of Infrastructure Solutions0.25yrUS$2.13m0.055%
$ 685.4k
Philip Schlom
Senior VP0.67yrno data0.0057%
$ 70.7k
Matthew Emery
Chief Information & Human Resource Officer8yrsUS$774.98k0.037%
$ 454.9k
David Nark
Senior Vice President of Strategic Marketing0.50yrno datano data
Chris Bacius
Vice President of Corporate Development7yrsUS$466.47k0.045%
$ 551.2k
Bryan Stovall
Chief Operating Officer of Metal Coatings Segment0.50yrno data0.066%
$ 811.4k
Michael Doucet
Senior Vice President of Surface Technologies & Galvabar3yrsno data0.0089%
$ 110.2k

3.2yrs

Average Tenure

56yo

Average Age

Experienced Management: AZZ's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Ferguson
President7.17yrsUS$3.41m0.43%
$ 5.4m
Daniel Berce
Independent Director21yrsUS$172.91k0.27%
$ 3.3m
Daniel Feehan
Independent Chairman of the Board2yrsUS$221.56k0.28%
$ 3.4m
Kevern Joyce
Independent Director24yrsUS$170.68k0.26%
$ 3.2m
Venita McCellon-Allen
Independent Director4.83yrsUS$169.54k0.062%
$ 770.5k
Steven Purvis
Independent Director5.5yrsUS$170.00k0.050%
$ 620.1k
Paul Eisman
Independent Director5yrsUS$170.00k0.042%
$ 518.2k
Ed McGough
Independent Director4yrsUS$166.82k0.036%
$ 446.7k

5.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: AZZ's board of directors are considered experienced (5.3 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 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$1.237b
  • Shares outstanding: 25.36m
  • Website: https://www.azz.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZZNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
AI7DB (Deutsche Boerse AG)YesCommon StockDEEURDec 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, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 23:29
End of Day Share Price2021/01/19 00:00
Earnings2020/11/30
Annual Earnings2020/02/29


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.