One-glance verdict
Undervalued
$346.64 our estimate vs market $132.23
Wall Street consensus: $162.30 (-53.2% lower than our fair-value estimate)
62% below our estimate, below the bear case
Fundamentals snapshot
AZZ Inc.
AZZ · NYQ · Industrials · Specialty Business Services
Current price
$132.23
52-week range
$94.61 - $162.20
Market cap
$3.96B
Balance sheet
Watch
4.76x Stretched
Net debt $558.43M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 5.8% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 0.7% with 38-year payout history.
- Risk Insider ownership is only 1.7% (peer median: 3.7%).
What this company does
AZZ Inc.
AZZ Inc. makes metal coatings that stop things like steel from rusting, primarily through two business parts: one that coats finished metal pieces and another that coats metal coils before they are used. Most of their money comes from providing these protective coatings to industries like construction and appliance makers, which is important because it helps their customers' products last longer and look better.
How the company got here
AZZ Inc. was founded in 1956 in Texas, initially as Aztec Manufacturing Co., focusing on electrical enclosures and industrial products. For decades, the company grew by supplying electrical and industrial products to various sectors like utilities and petrochemicals. A significant shift occurred in 1998 when AZZ began expanding into galvanizing services, acquiring its first operations in this area. This marked the beginning of its focus on metal coatings as a key growth engine. The company went public in 1994, gaining access to capital markets. In recent years, AZZ has strategically refined its business by selling non-core infrastructure assets and acquiring Precoat Metals in 2022, sharpening its focus on coatings.
What it actually does
AZZ Inc. is a leading North American provider of metal coating solutions. Essentially, they protect and enhance metal surfaces, primarily steel and aluminum, to prevent corrosion and improve appearance. They work with businesses that manufacture products or build infrastructure, applying specialized coatings to metal components before they are used in final products or structures. AZZ's services are crucial for extending the lifespan and durability of various items, from construction materials to appliances.
AZZ Metal Coatings
This segment is AZZ's original core business and involves applying protective coatings to fabricated steel. The primary method is hot-dip galvanizing, where steel parts are dipped in molten zinc to create a durable, corrosion-resistant layer. They also offer other services like spin galvanizing, powder coating, anodizing, and plating. These services are essential for steel used in construction, utility infrastructure, industrial equipment, and transportation. AZZ operates a large network of galvanizing plants across North America to serve these industries efficiently.
AZZ Precoat Metals
This segment focuses on coating and processing steel and aluminum coils before they are manufactured into final products. Think of it like painting a large roll of metal with specific colors or protective layers. These pre-coated coils are then used by manufacturers in industries such as construction (for building materials), appliances (like refrigerators and washing machines), heating and air conditioning (HVAC) systems, containers, and transportation. This part of the business significantly expanded AZZ's scale and diversified its offerings into coil coating.
AZZ Infrastructure Solutions
This segment is involved in delivering power transmission and automated weld overlay solutions for critical infrastructure. It focuses on ensuring the safe and reliable transmission of electricity and mitigating corrosion and erosion in essential systems. While AZZ has been strategically narrowing its focus, this segment plays a role in protecting and maintaining vital infrastructure.
What management is betting on now
AZZ's management is focused on driving sustainable market share expansion and operational excellence. A key priority is the full ramp-up of their new aluminum coil coating facility in Washington, Missouri, which is designed to serve the growing aluminum container market. They are also prioritizing investments in capacity additions to fuel organic growth, share repurchases, and maintaining their cash dividend, all while pursuing a disciplined approach to mergers and acquisitions (M&A). The company aims to generate strong free cash flow (the cash a company has left after paying for its operating costs and investments in assets) to support these strategic initiatives.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$39.73M
FY2025 Q4
$34.37M
FY2026 Q1
$293.89M
FY2026 Q2
$39.11M
FY2026 Q3
$61.16M
FY2026 Q4
$50.52M
FY2027 Q1
$18.40M
FY2027 Q2
$84.37M
Revenue
$486.89M
Net income
$58.45M
Diluted EPS
1.94
Operating cash flow
$102.84M
Free cash flow
$84.37M
Fetching…
Sources
Revenue
$448.53M
Net income
$52.01M
Diluted EPS
1.72
Operating cash flow
$37.15M
Free cash flow
$18.40M
Fetching…
Sources
Revenue
$385.10M
Net income
$15.93M
Diluted EPS
0.53
Operating cash flow
$72.57M
Free cash flow
$50.52M
Fetching…
Sources
Revenue
$425.75M
Net income
$41.08M
Diluted EPS
1.36
Operating cash flow
$79.70M
Free cash flow
$61.16M
Fetching…
Sources
Revenue
$417.27M
Net income
$89.35M
Diluted EPS
2.95
Operating cash flow
$58.39M
Free cash flow
$39.11M
Fetching…
Sources
Revenue
$421.96M
Net income
$170.91M
Diluted EPS
5.66
Operating cash flow
$314.78M
Free cash flow
$293.89M
Fetching…
Sources
Revenue
$351.88M
Net income
$20.21M
Diluted EPS
0.87
Operating cash flow
$64.31M
Free cash flow
$34.37M
Fetching…
Sources
Revenue
$403.65M
Net income
$33.60M
Diluted EPS
1.12
Operating cash flow
$66.17M
Free cash flow
$39.73M
Fetching…
Sources
Is it cheap or expensive?
Fair value $346.64 vs current price $132.23
Wall Street consensus is the average analyst price target: $162.30 (-53.2% lower than our fair-value estimate).
Our most-likely fair value is $346.64 a share — about 162.1% above today's price of $132.23, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $558.4M. Interest coverage 4.8x.
Net debt
$558.43M
Interest coverage
4.76x
AZZ Inc.'s profit covers its interest bill about 4.8 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
AZZ
BASELINE
AZZ Inc.
Total debt $560.39M Interest coverage 4.76x This is the baseline the peer rows are being compared against.
Total debt $634.13M Interest coverage 25.34x +433% vs AZZ Carries about 5.3x more debt cushion than AZZ.
Total debt $282.30M Interest coverage 31.60x +565% vs AZZ Carries about 6.6x more debt cushion than AZZ.
Total debt $83.59M Interest coverage 27.17x +471% vs AZZ Carries about 5.7x more debt cushion than AZZ.
Total debt $3.26B Interest coverage 12.51x +163% vs AZZ Carries about 2.6x more debt cushion than AZZ.
Total debt $347.55M Interest coverage 13.33x +180% vs AZZ Carries about 2.8x more debt cushion than AZZ.
What you should know
The case for and against AZZ
3 Rewards
1 Risk
Rewards
-
Revenue grew 5.8% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 0.7% with 38-year payout history.
Risks
-
Insider ownership is only 1.7% (peer median: 3.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.83x
Forward P/E
16.71x
P/B
2.80x
P/S
2.27x
EV/EBITDA
11.70x
PEG ratio
1.20x
Profitability
How much profit each dollar creates
Gross margin
24.1%
Operating margin
17.8%
Net margin
9.6%
ROE
12.3%
ROA
8.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.40x
Current ratio
1.79x
Quick ratio
1.21x
Total debt
$560.39M
Total cash
$1.95M
Growth
How the business has been compounding
Revenue TTM
$1.75B
Revenue 5Y CAGR
33.1%
EPS TTM
5.55
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$292.27M
Free CF TTM
$444.67M
FCF margin
25.5%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
15.1%
Last ex-div date
2026-10-19