AZZ (AZZ) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: 0.69%
• Average Volume (3M): 200.99K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.25
• Revenue Growth: 1.55%
• EPS Growth: 701.41%
• Country: US
• Employees: 3,684
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.55
• Shares Outstanding: 30,057,081
• 10 Day Avg. Volume: 173,108
• 30 Day Avg. Volume: 200,988
• PEG Ratio: -0.45
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 10.50
• Enterprise Value/Ebitda: 7.08
• 1Y Price Target: $128.40
• Price Target Upside: 19.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $119.00 ▲(11.04% Upside)

AZZ's overall stock score of 79 reflects strong financial performance and positive earnings call sentiment, driven by robust revenue growth, effective debt management, and strategic market positioning. Technical analysis indicates some short-term bullish momentum, though medium-term resistance is present. The valuation is reasonable, with a modest dividend yield enhancing attractiveness. Challenges in the Precoat Metals segment and mixed demand outlook due to tariffs are noted but do not significantly detract from the company's strong market position.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Debt Management

Effective debt management enhances financial stability and reduces financial risk, allowing for more strategic investments.

Metal Coatings Segment Performance

Strong performance in the Metal Coatings segment highlights AZZ's competitive advantage and growth potential in infrastructure markets.

Negative Factors

Precoat Metals Sales Decline

Declining sales in Precoat Metals reflect challenges in key markets, potentially affecting revenue stability and growth.

Margin Pressure in Precoat Metals

Margin pressure in Precoat Metals could strain profitability, affecting overall financial performance and strategic flexibility.

Mixed Demand Outlook for Precoat

Uncertain demand in Precoat markets may hinder growth, requiring strategic adjustments to maintain competitive positioning.

AZZ Business Overview & Revenue Model

Company Description

AZZ Inc. is a global provider of galvanizing and metal coating services, as well as a manufacturer of electrical equipment and components. The company operates primarily in the industrial sector, focusing on providing corrosion protection and electrical solutions that enhance the lifecycle and safety of various infrastructures. AZZ's core products include hot-dip galvanizing services, electrical enclosures, and various other components used in power generation, transmission, and distribution.

How the Company Makes Money

AZZ generates revenue through multiple streams, primarily by offering galvanizing services and manufacturing electrical products. The galvanizing segment contributes significantly to the company's earnings by providing protective coatings for steel, which is essential for construction and infrastructure projects. The electrical segment includes manufacturing and selling electrical equipment, such as enclosures and power distribution units, which cater to industries like utilities, oil and gas, and construction. Key partnerships with major construction and utility companies bolster AZZ's market presence and revenue stability. Additionally, the company benefits from long-term contracts and repeat business from customers in various sectors, ensuring a steady cash flow.

AZZ Financial Statement Overview

Summary

AZZ exhibits strong financial health with impressive revenue and profit growth, efficient leverage management, and robust cash flow generation. The company has effectively reduced its debt burden, enhancing financial stability. Minor concerns include gross profit margin pressures and historical cash flow volatility.

Income Statement

AZZ has demonstrated strong revenue growth, particularly in the TTM period with a 52.1% increase. The company maintains robust profitability with a high net profit margin of 19.7% and an EBIT margin of 25.7%. These metrics indicate effective cost management and operational efficiency. However, the gross profit margin has slightly decreased compared to previous periods, suggesting potential pressure on production costs.

Balance Sheet

The balance sheet shows a significant improvement in leverage, with the debt-to-equity ratio dropping to 0.02 in the TTM period, indicating reduced financial risk. Return on equity is strong at 27.4%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

AZZ's cash flow performance is solid, with a notable increase in free cash flow growth by 6.2% in the TTM period. The operating cash flow to net income ratio of 2.24 suggests strong cash generation relative to earnings. The free cash flow to net income ratio is also healthy at 0.81, indicating good cash conversion. However, historical fluctuations in free cash flow growth highlight potential volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.59B	1.58B	1.54B	1.32B	525.60M	480.57M
Gross Profit	381.92M	382.68M	363.46M	295.94M	146.15M	122.90M
EBITDA	566.69M	334.17M	316.59M	252.06M	111.47M	79.99M
Net Income	314.07M	128.83M	101.61M	-52.97M	84.02M	39.61M
Balance Sheet
Total Assets	2.23B	2.23B	2.20B	2.22B	1.13B	996.44M
Cash, Cash Equivalents and Short-Term Investments	897.00K	1.49M	4.35M	2.82M	12.08M	14.84M
Total Debt	597.31M	879.13M	977.23M	1.09B	241.18M	217.67M
Total Liabilities	922.95M	1.18B	1.26B	1.37B	465.66M	375.94M
Stockholders Equity	1.30B	1.05B	934.49M	853.46M	667.37M	623.29M
Cash Flow
Free Cash Flow	407.09M	134.03M	149.35M	13.04M	57.60M	54.96M
Operating Cash Flow	503.65M	249.91M	244.47M	70.16M	86.01M	92.03M
Investing Cash Flow	-122.75M	-115.00M	-95.06M	-1.23B	-86.83M	-28.59M
Financing Cash Flow	-382.56M	-138.69M	-147.89M	1.15B	912.00K	-88.42M

AZZ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 107.17 is above the 20-day moving average (MA) of 104.00, above the 50-day MA of 102.09, and above the 200-day MA of 98.80, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 74.73 is Neutral, 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
AZZ	79 Outperform	$3.22B	10.31	27.28%	0.69%	1.55%	701.41%
IIIN	73 Outperform	$645.01M	15.84	11.36%	3.42%	22.39%	112.75%
NWPX	71 Outperform	$610.50M	17.27	9.78%	―	7.61%	25.35%
WOR	71 Outperform	$2.88B	27.14	11.50%	1.20%	-39.38%	175.22%
PRLB	70 Outperform	$1.14B	78.80	2.21%	―	2.82%	-34.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RYI	49 Neutral	$732.76M	―	-2.81%	2.98%	-4.89%	-214.50%

AZZ Corporate Events

AZZ Highlights Strategic Focus in New Presentation

On October 17, 2025, AZZ Inc. released presentation materials for use in discussions with various stakeholders, highlighting its strategic focus on metal coatings and recent achievements. The company has made significant strides in operational excellence, debt reduction, and strategic acquisitions, including the purchase of Canton Galvanizing. AZZ’s commitment to growth is supported by investments in new facilities and technologies, while maintaining a disciplined capital allocation strategy aimed at enhancing shareholder value.

AZZ Declares Q2 2026 Cash Dividend

On October 2, 2025, AZZ Inc. announced that its Board of Directors declared a fiscal year 2026 second quarter cash dividend of $0.20 per share, payable on November 6, 2025, to shareholders of record as of October 16, 2025. This move reflects AZZ’s commitment to enhancing shareholder value, with future dividends to be reviewed individually based on various factors such as operating results and financial condition.