AZZ (AZZ) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: 0.76%
• Average Volume (3M): 218.27K
• Price to Earnings (P/E): 51.1
• Beta (1Y): 1.15
• Revenue Growth: 2.61%
• EPS Growth: -53.74%
• Country: US
• Employees: 3,684
• Sector: Industrials
• Sector Strength: 92
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.98
• Shares Outstanding: 29,913,086
• 10 Day Avg. Volume: 187,061
• 30 Day Avg. Volume: 218,266
• PEG Ratio: 2.45
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $100.50
• Price Target Upside: 10.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: ―

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. is a leading provider of specialized products and services designed to support industrial, electrical, and infrastructure applications. The company operates in two primary segments: Metal Coatings and Infrastructure Solutions. In the Metal Coatings segment, AZZ is a leading provider of hot-dip galvanizing services to the North American steel fabrication market. Within Infrastructure Solutions, AZZ offers a wide range of products including switchgear, electrical enclosures, and other engineered solutions that serve the power generation, transmission, and distribution sectors.

How the Company Makes Money

AZZ Inc. generates revenue through its two main business segments. In the Metal Coatings segment, the company earns money by providing galvanizing services that protect metal products from corrosion, extending their lifespan and adding value for customers in steel fabrication and related industries. The Infrastructure Solutions segment contributes to revenue by offering a variety of engineered products and services, including switchgear, bus systems, and specialty electrical equipment, which are essential for power generation and distribution. Key revenue streams include sales of these products, as well as associated services and maintenance. Significant partnerships with industrial and utility companies further enhance AZZ's market reach and revenue potential.

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: 91.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 91.26 is above the 20-day moving average (MA) of 90.58, above the 50-day MA of 85.86, and above the 200-day MA of 84.99, indicating a bullish trend. The MACD of 1.43 indicates Positive momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 25.66 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
IIIN	75 Outperform	$710.08M	31.72	6.61%	0.34%	-0.33%	-7.06%
AZZ	70 Outperform	$2.73B	51.07	13.01%	0.76%	2.61%	-53.74%
MEC	69 Neutral	$310.19M	14.04	9.40%	―	-8.42%	164.82%
NWPX	67 Neutral	$399.77M	12.36	9.13%	―	8.06%	38.46%
WOR	66 Neutral	$2.97B	49.76	6.56%	1.16%	-69.82%	-78.10%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
RYI	58 Neutral	$670.32M	37.86	-0.78%	3.60%	-9.04%	-108.47%

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.