NYSE:AZZ

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Excellent 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


Market Performance


7 Day Return

-2.9%

NYSE:AZZ

-0.6%

US Electrical

0.2%

US Market


1 Year Return

-24.2%

NYSE:AZZ

-12.3%

US Electrical

-0.7%

US Market

AZZ underperformed the Electrical industry which returned -11% over the past year.

AZZ underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

AZZIndustryMarket
7 Day-2.9%-0.6%0.2%
30 Day-8.3%-6.7%-2.7%
90 Day-4.7%-3.4%1.6%
1 Year-23.1%-24.2%-10.4%-12.3%1.6%-0.7%
3 Year-35.2%-37.9%21.3%14.2%40.0%30.9%
5 Year-4.7%-10.8%16.9%5.0%53.8%36.8%

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

19.06x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

AZZ's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

AZZ's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

AZZ is good value based on expected growth next year.


Price Based on Value of Assets

AZZ is overvalued based on assets compared to the US Electrical industry average.


Next Steps

Future Growth

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

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AZZ's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).

AZZ's earnings are expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).

AZZ's revenue growth is positive but not above the United States of America market average.

AZZ's earnings growth is expected to exceed the United States of America market average.

AZZ's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if AZZ will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has AZZ performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 exceeds its 5-year average (16.3% vs -6.2%)

AZZ's earnings growth has not exceeded the US Electrical industry average in the past year (16.3% vs 20.1%).


Return on Equity

AZZ has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AZZ used its assets less efficiently than the US Electrical industry average last year based on Return on Assets.


Return on Capital Employed

AZZ's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AZZ's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

AZZ's level of debt (47.9%) 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 (102.1% vs 47.9% today).

Debt is well covered by operating cash flow (36.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

1.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AZZ's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

AZZ's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x 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.


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Tom Ferguson (63yo)

5.8yrs

Tenure

US$2,782,725

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

Tom's remuneration is about average for companies of similar size in United States of America.

Tom's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

The average tenure for the AZZ management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

64yo

Average Age

The tenure for the AZZ board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$228,83522 Oct 18
Thomas Ferguson
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$45.77
BuyUS$45,47622 Oct 18
Paul Fehlman
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance & CFO
Shares1,000
Max PriceUS$45.48

Ownership Breakdown


Management Team

  • Tom Ferguson (63yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$2.78m
  • Paul Fehlman (55yo)

    Senior VP of Finance & CFO

    • Tenure: 5.3yrs
    • Compensation: US$1.20m
  • Tara Mackey (49yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 5.3yrs
    • Compensation: US$929.67k
  • Bryan Stovall (55yo)

    Senior Vice President of Metal Coatings

    • Tenure: 1.6yrs
  • Matt Emery (51yo)

    VP, Chief Information & HR Officer

    • Tenure: 6.6yrs
    • Compensation: US$774.98k
  • Chris Bacius (58yo)

    Vice President of Corporate Development

    • Tenure: 5.6yrs
    • Compensation: US$466.47k
  • James Byelick (62yo)

    Vice President & Chief Accounting Officer

    • Tenure: 2.1yrs
  • Ken Lavelle (62yo)

    President & GM of Electrical Platform

    • Tenure: 2.0yrs
    • Compensation: US$770.10k
  • Michael Doucet (46yo)

    Senior Vice President of Alternative Coatings

    • Tenure: 1.6yrs

Board Members

  • Dan Berce (65yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: US$172.00k
  • Dan Feehan (68yo)

    Independent Chairman

    • Tenure: 0.6yrs
    • Compensation: US$173.00k
  • Kevern Joyce (73yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$226.50k
  • Venita McCellon-Allen (59yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$165.00k
  • Steve Purvis (55yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$170.00k
  • Tom Ferguson (63yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$2.78m
  • Steve Pirnat (67yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$170.00k
  • Paul Eisman (64yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$170.00k
  • Ed McGough (58yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$165.00k

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$1.085b
  • Shares outstanding: 26.15m
  • 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 services, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:30
End of Day Share Price2019/08/20 00:00
Earnings2019/05/31
Annual Earnings2019/02/28


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.