AZZ (AZZ) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: 0.78%
• Average Volume (3M): 261.60K
• Price to Earnings (P/E): 50.6
• Beta (1Y): 1.21
• Revenue Growth: 2.61%
• EPS Growth: -53.74%
• Country: US
• Employees: 3,684
• Sector: Industrials
• Sector Strength: 78
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.59
• Shares Outstanding: 29,913,086
• 10 Day Avg. Volume: 281,486
• 30 Day Avg. Volume: 261,604
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $103.50
• Price Target Upside: 14.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

AZZ's overall stock score reflects robust financial performance and a positive earnings outlook. However, mixed technical indicators and a high P/E ratio suggest caution regarding stock valuation. The company's strategic initiatives and financial health provide a solid foundation for future growth, but investors should be mindful of current pricing.

Positive Factors

Financial Performance

Steady organic growth, operational efficiencies, and expanding free cash flow drive a Buy rating with a price target of $108.

Market Position

AZZ is the US leader in galvanizing and coating with significant market shares, providing opportunities for continued expansion.

Negative Factors

Market Uncertainty

Private sector project spending has reverted lower in recent months given heightened levels of market uncertainty.

Volume Growth

The 2FQ deceleration in volume growth is a partial offset to the margin gains given some concern over the sustainability of the elevated profitability profile.

AZZ Business Overview & Revenue Model

Company Description

AZZ Inc. offers 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 metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating 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. The Infrastructure Solutions segment provides products and services to support industrial and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, and tubular products, as well as solutions and engineering resources to multi-national companies. This segment sells its products through internal sales force, manufacturers' representatives, distributors, and agents. The company was incorporated in 1956 and is headquartered in Fort Worth, Texas.

How the Company Makes Money

AZZ Inc. generates revenue primarily through its two main business segments: Metal Coatings and Infrastructure Solutions. The Metal Coatings segment provides hot-dip galvanizing and powder coating services, which are essential for protecting metal from corrosion and enhancing durability. This segment services a diverse customer base, including steel fabricators, manufacturers, and the construction industry. The Infrastructure Solutions segment offers specialized products and services such as switchgear, electrical enclosures, and automation systems, catering to industries like power generation, transmission, and distribution. These solutions help in improving operational efficiency and safety for their clients. Additionally, AZZ maintains strategic partnerships and long-term contracts with key players in various sectors, contributing to stable and recurring revenue streams.

AZZ Financial Statement Overview

Summary

AZZ exhibits strong financial performance with significant revenue growth and profitability improvements. The company has a robust balance sheet with low leverage and effective debt management, despite slightly lower profit margins than the industry average. Cash flow generation is strong, but stability needs monitoring.

Income Statement

AZZ has demonstrated strong revenue growth, with a notable increase from $902.66 million in 2022 to $1,577.74 million in 2025. The company maintains healthy profitability with a gross profit margin of approximately 24.25% in 2025 and a net profit margin of around 8.16%. Consistently improving EBIT and EBITDA margins indicate operational efficiency. However, the net profit margin is slightly lower than the industry average, suggesting room for improvement in cost management.

Balance Sheet

AZZ's balance sheet reflects solid equity with an equity ratio of 46.94% in 2025, indicating a balanced capital structure. The debt-to-equity ratio has improved significantly from 1.22 in 2022 to 0.03 in 2025, showcasing effective debt management. The return on equity (ROE) is robust at 12.32% in 2025, highlighting strong shareholder returns. However, the company should ensure continued focus on maintaining low leverage to mitigate potential risks.

Cash Flow

AZZ has shown a positive trend in free cash flow, with a free cash flow of $134.03 million in 2025, reflecting efficient capital expenditure management. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to income. However, the free cash flow growth rate has seen fluctuations, suggesting potential volatility in cash flow management that should be monitored closely.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.58B	1.54B	1.32B	902.66M	838.92M
	Gross Profit
382.68M	363.46M	295.94M	225.22M	188.75M
	EBIT
236.36M	221.60M	102.89M	66.28M	36.04M
	EBITDA
334.17M	316.59M	252.06M	111.47M	105.25M
	Net Income Common Stockholders
128.83M	101.61M	66.34M	84.02M	39.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.49M	4.35M	2.82M	15.08M	14.84M
	Total Assets
2.23B	2.20B	2.22B	1.13B	996.44M
	Total Debt
879.13M	977.23M	1.06B	233.80M	178.42M
	Net Debt
877.64M	972.88M	1.06B	218.72M	163.58M
	Total Liabilities
1.18B	1.26B	1.37B	465.66M	373.15M
	Stockholders Equity
1.05B	934.49M	853.46M	667.37M	623.29M
Cash Flow		Free Cash Flow
134.03M	149.35M	34.31M	57.60M	54.96M
	Operating Cash Flow
249.91M	244.47M	91.43M	86.01M	92.03M
	Investing Cash Flow
-115.00M	-95.06M	-1.23B	-86.83M	-28.59M
	Financing Cash Flow
-138.69M	-147.89M	1.03B	912.00K	-88.42M

AZZ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZZ, the sentiment is Positive. The current price of 90.46 is above the 20-day moving average (MA) of 82.45, above the 50-day MA of 85.87, and above the 200-day MA of 84.04, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 89.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZZ.

AZZ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IIIN	72 Outperform	$519.77M	27.20	6.61%	0.35%	-0.33%	-7.06%
AZZ	70 Outperform	$2.71B	50.62	13.01%	0.78%	2.61%	-53.74%
NWPX	67 Neutral	$380.70M	11.78	9.13%	―	8.06%	38.46%
WOR	66 Neutral	$2.60B	43.48	6.56%	1.31%	-69.82%	-78.10%
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%
MEC	61 Neutral	$271.99M	10.78	10.78%	―	-1.16%	227.49%
RYI	56 Neutral	$677.73M	37.86	-1.00%	3.77%	-9.98%	-106.51%

AZZ Corporate Events

AZZ Prepares Strategic Presentation for Stakeholders

On April 25, 2025, AZZ Inc. announced the preparation of presentation materials intended for use in discussions with various stakeholders, including investors and employees. These materials highlight AZZ’s strategic focus on reducing debt, improving leverage, and supporting high return on investment capital. The company has made significant strides in reducing its net leverage to 2.5x as of February 28, 2025, and plans to continue focusing on operational excellence and sustainability initiatives to drive long-term growth and shareholder value.

Spark’s Take on AZZ Stock

According to Spark, TipRanks’ AI Analyst, AZZ is a Outperform.

AZZ’s overall stock score reflects strong financial performance and an optimistic outlook from the latest earnings call, bolstered by record sales and effective debt reduction. However, mixed technical indicators and a high P/E ratio suggest caution. The valuation indicates potential overpricing, which could limit upside potential. Despite these concerns, the company’s strategic initiatives and financial health position it well for future growth in the industry.

To see Spark’s full report on AZZ stock, click here.

AZZ Highlights Strategic Initiatives for Investor Meetings

AZZ Inc. has announced the preparation of presentation materials for investor meetings starting February 5, 2025. The materials highlight AZZ’s strategic journey, including past divestments, acquisitions, and a focus on metal coatings. The company aims to strengthen its market position by investing in new technologies, reducing leverage, and maintaining high returns on investment capital. The presentation underscores AZZ’s commitment to sustainability and outlines its achievements in reducing debt and improving financial performance, which provide a promising outlook for stakeholders.