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AZZ
(NYSE:AZZ)
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Rating:73Outperform
Price Target:
$160.00
▲(6.74% Upside)
Action:Reiterated
Date:07/09/26
AZZ scores well overall primarily due to improved financial strength (notably reduced leverage and solid profitability) and a strong, guidance-raising earnings call that reinforced operational momentum in Metal Coatings and disciplined capital allocation. The score is held back by weaker near-term technical signals (trading below key short-term moving averages with soft momentum) and some cash-flow inconsistency, while valuation appears reasonable but not compelling given the low dividend yield.
Positive Factors
Stronger Balance Sheet
Material leverage reduction and a high TTM ROE create durable financial flexibility. Lower debt levels reduce interest burden, support capital allocation (dividends, buybacks, M&A), and improve resilience to cyclical steel and construction demand over the next several quarters.
Negative Factors
Cash-Flow Volatility
A steep TTM free cash flow decline and modest cash conversion reduce predictability of internally generated funds. Persistent working-capital swings or timing effects could limit consistent debt paydown, buybacks, or funding of growth projects over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger Balance Sheet
Material leverage reduction and a high TTM ROE create durable financial flexibility. Lower debt levels reduce interest burden, support capital allocation (dividends, buybacks, M&A), and improve resilience to cyclical steel and construction demand over the next several quarters.
Read all positive factors
AZZ Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Shows the revenue generated from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Shows the revenue generated from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyAZZ (AZZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.36B
Dividend Yield0.58%
Average Volume (3M)340.30K
Price to Earnings (P/E)21.9
Beta (1Y)1.18
Revenue Growth5.68%
EPS Growth-23.91%
CountryUS
Employees3,767
SectorIndustrials
Sector Strength72
IndustryIndustrial - Specialties
Share Statistics
EPS (TTM)6.61
Shares Outstanding30,051,500
10 Day Avg. Volume311,813
30 Day Avg. Volume340,300
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)3.05
Price to Sales (P/S)2.47
P/FCF Ratio9.16
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$165.40Price Target Upside10.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)7.07
Revenue Forecast (FY)$1.82B
AZZ Business Overview & Revenue Model
Company Description
AZZ Inc. (AZZ) is an industrial company focused primarily on metal coating and related services for steel and fabricated products. Through its infrastructure-focused operations, the company provides hot-dip galvanizing and other protective coating...
How the Company Makes Money
AZZ makes money mainly by providing metal coating services (most notably hot-dip galvanizing) to customers that manufacture or fabricate steel products used in infrastructure and industrial end markets. Revenue is generated from service fees charg...
AZZ Earnings Call Summary
Earnings Call Date:Jul 08, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 13, 2026
Earnings Call Sentiment Positive
The call conveyed multiple strong operational and financial positives: record quarterly sales, double-digit Metal Coatings growth, a successful ramp at the Washington, MO Precoat facility (driving a 194% container sales increase), improved margins and cash flow, a 20% dividend increase, lower interest expense, low net leverage, and an upgraded full-year outlook. Lowlights centered on comparability noise from the Avail JV divestiture, a decline in Infrastructure Solutions adjusted EBITDA, some Precoat volume softness in HVAC/appliances/transportation, and substrate/tariff-related disruptions. Overall, the positive execution, upgraded guidance, balance sheet improvement and capacity investments materially outweigh the challenges highlighted.Positive Updates
Record Quarterly Sales
First quarter sales of $448.5 million, up 6.3% year over year, driven by broad end-market momentum.
Negative Updates
Infrastructure Solutions EBITDA Decline
Infrastructure Solutions adjusted EBITDA fell from $7.6 million in prior-year Q1 to a loss of $0.8 million in the current quarter, largely reflecting Avail JV divestitures and comparability effects.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Sales
First quarter sales of $448.5 million, up 6.3% year over year, driven by broad end-market momentum.
Read all positive updates
Company Guidance
AZZ raised its fiscal 2027 outlook to sales of $1.80–$1.85 billion, adjusted EBITDA of $375–$415 million and adjusted diluted EPS of $6.75–$7.15, and said it expects to reduce debt by $130–$170 million in FY27. The raise follows a strong Q1 (sales $448.5M, +6.3% YoY; metal coatings +12.3%, Precoat +1.5%), consolidated adjusted EBITDA $99.5M (22.2% of sales), gross profit $112.2M (25.0%), operating income $77.0M (17.2%), adjusted diluted EPS $1.85 (+3.9%), operating cash flow $37.1M, CapEx $18.7M, net leverage 1.4x, interest expense $11.3M, tax rate 21.2%, GAAP net income $52.0M, plus a 20% dividend increase to $0.24/qtr and $133.2M of share repurchase capacity—management tied the guidance lift to metal coatings momentum, the Washington, MO ramp and recent capacity investments.AZZ Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.68B | 1.65B | 1.58B | 1.54B | 1.32B | 525.60M |
| Gross Profit | 402.99M | 394.95M | 382.68M | 363.46M | 295.94M | 146.15M |
| EBITDA | 377.09M | 566.02M | 334.17M | 316.59M | 252.06M | 111.47M |
| Net Income | 198.36M | 317.26M | 128.83M | 101.61M | -52.97M | 84.02M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 2.21B | 2.23B | 2.20B | 2.22B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06M | 705.00K | 1.49M | 4.35M | 2.82M | 12.08M |
| Total Debt | 542.82M | 538.39M | 879.13M | 977.23M | 1.09B | 241.18M |
| Total Liabilities | 876.28M | 876.44M | 1.18B | 1.26B | 1.37B | 465.66M |
| Stockholders Equity | 1.38B | 1.34B | 1.05B | 934.49M | 853.46M | 667.37M |
Cash Flow | ||||||
| Free Cash Flow | 169.19M | 444.67M | 134.03M | 149.35M | 13.04M | 57.60M |
| Operating Cash Flow | 247.81M | 525.45M | 249.91M | 244.47M | 70.16M | 86.01M |
| Investing Cash Flow | -93.06M | -91.48M | -115.00M | -95.06M | -1.23B | -86.83M |
| Financing Cash Flow | -156.78M | -434.12M | -138.69M | -147.89M | 1.15B | 912.00K |
AZZ Technical Analysis
Negative
149.90
Price Trends
146.45
Negative
140.18
Positive
126.90
Positive
Market Momentum
0.84
Negative
51.78
Neutral
79.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZZ, the sentiment is Negative. The current price of 149.9 is above the 20-day moving average (MA) of 147.48, above the 50-day MA of 146.45, and above the 200-day MA of 126.90, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 79.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZZ.
AZZ Risk Analysis
AZZ disclosed 35 risk factors in its most recent earnings report. AZZ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AZZ Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.36B | 21.89 | 14.87% | 0.56% | 5.68% | -23.91% | |
73 Outperform | $1.22B | 24.32 | 12.16% | ― | 15.12% | 50.31% | |
70 Outperform | $1.79B | 59.09 | 3.84% | ― | 10.20% | 110.80% | |
69 Neutral | $592.75M | 16.39 | 9.92% | 3.43% | 17.06% | 16.89% | |
69 Neutral | $2.74B | 17.62 | 15.80% | 1.36% | 19.72% | 63.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AZZ
AZZ
144.72
39.11
37.04%
IIIN
Insteel Industries
30.65
-3.42
-10.03%
NWPX
Northwest Pipe Company
123.08
82.54
203.60%
PRLB
Proto Labs
75.05
31.86
73.77%
WOR
Worthington Industries
56.21
-4.48
-7.38%
AZZ Corporate Events
Executive/Board ChangesShareholder Meetings
AZZ shareholders approve directors, compensation and auditor
Positive
Jul 7, 2026
On July 7, 2026, AZZ Inc. held its 2026 annual meeting of shareholders, where investors voted on key governance items including the election of directors, executive pay and auditor ratification. Shareholders elected seven directors to one-year ter...
Business Operations and StrategyDividends
AZZ Boosts Quarterly Dividend, Signaling Confidence and Growth
Positive
Jun 25, 2026
On June 25, 2026, AZZ Inc. announced that its board declared a fiscal 2027 first-quarter cash dividend of $0.24 per share on its common stock, payable on July 30, 2026, to shareholders of record as of July 9, 2026. The payout represents a 20% incr...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
AZZ Highlights Metal Coatings Strategy and Transformation Progress
Positive
May 28, 2026
On May 28, 2026, AZZ Inc. released updated investor presentation materials outlining its strategy as a focused metal coatings company, including hot-dip galvanizing and coil coating operations positioned for secular growth in North American steel ...
Business Operations and StrategyPrivate Placements and Financing
AZZ Extends Revolving Credit Facility, Lowers Borrowing Costs
Positive
May 8, 2026
On May 7, 2026, AZZ Inc. executed a Seventh Amendment to its existing credit agreement with Wells Fargo Bank and a group of lenders, extending the maturity of its revolving credit commitments to May 7, 2029 and replacing the prior commitments in f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.