One-glance verdict
Undervalued
$304.01 our estimate vs market $132.72
Wall Street consensus: $164.00 (-46.1% lower than our fair-value estimate)
56% below our estimate, below the bear case
Fundamentals snapshot
AZZ Inc.
AZZ · NYQ · Industrials · Specialty Business Services
Current price
$132.72
52-week range
$92.98 - $162.20
Market cap
$3.99B
Balance sheet
Watch
4.76x Stretched
Net debt $541.76M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 1.6% last year.
- Reward Returns 15.3% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
AZZ Inc.
AZZ Inc. specializes in protecting metal from rust by applying special coatings to steel and aluminum. The company generates its revenue (the money it makes from sales) in two main ways: dipping finished steel parts into molten zinc to prevent corrosion, and painting giant rolls of metal before they're turned into products for construction or appliances. Because rust is a constant threat to metal, AZZ's services are essential for making everything from bridges to refrigerators last much longer.
How the company got here
Founded in 1956 as a small manufacturing company in Texas, AZZ initially focused on electrical and industrial products. A major shift happened in the late 1990s when the company began expanding into metal coating services, specifically a process called galvanizing. More recently, in 2022, AZZ made a significant move by acquiring Precoat Metals, which greatly expanded its coating capabilities. At the same time, it sold off other, less related parts of its business to become more focused on being a specialized metal coatings company.
What it actually does
Think of AZZ as a company that provides protective and decorative coatings for metal, mainly steel and aluminum, to make it last longer and look better. They don't make the metal itself, but other companies send their metal products to AZZ to be treated. This is a business-to-business service, meaning their customers are other companies, not everyday shoppers. Their coatings are used on everything from huge bridge beams and utility poles to the metal sheets used for roofing, appliances, and air conditioners.
AZZ Metal Coatings
This is the company's original and largest coatings business, making it the leading provider of this service in North America. Its main service is called hot-dip galvanizing, which involves dipping fabricated steel into molten zinc to create a protective barrier against rust and corrosion. Customers are typically in industries like construction, utilities, and transportation who need to protect large steel structures from the elements. This segment also offers other specialized finishes like powder coating and plating.
AZZ Precoat Metals
This part of the company specializes in coil coating, which is applying a protective or decorative layer of paint to giant rolls (or coils) of steel and aluminum before they are cut and shaped. This is a highly efficient process for manufacturers of products like building panels, roofing, appliances, and HVAC units. By having the metal pre-painted, these manufacturers can simplify their own production lines. This segment became a major part of AZZ after the acquisition of Precoat Metals in 2022.
What management is betting on now
The company's leadership is focused on being a pure-play coatings company, having sold off unrelated businesses to concentrate on what they do best. A major priority is to continue growing by taking advantage of large trends like the reshoring (bringing manufacturing back to North America) of industries and increased investment in infrastructure like the power grid and data centers. They are also focused on paying down debt taken on for acquisitions and improving the profitability of the Precoat Metals business. Management is also looking for opportunities to grow by acquiring smaller, similar companies to expand their network and capabilities.
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 Q2
$15.38M
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
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
Revenue
$409.01M
Net income
$35.42M
Diluted EPS
1.18
Operating cash flow
$47.49M
Free cash flow
$15.38M
Fetching…
Sources
Is it cheap or expensive?
Fair value $304.01 vs current price $132.72
Wall Street consensus is the average analyst price target: $164.00 (-46.1% lower than our fair-value estimate).
Our most-likely fair value is $304.01 a share — about 129.1% above today's price of $132.72, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $541.8M. Interest coverage 4.8x.
Net debt
$541.76M
Interest coverage
4.76x
AZZ Inc.'s profit covers its interest bill about 4.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
AZZ
BASELINE
AZZ Inc.
Total debt $542.82M Interest coverage 4.76x This is the baseline the peer rows are being compared against.
Total debt $879.52M Interest coverage 12.88x +171% vs AZZ Carries about 2.7x more debt cushion than AZZ.
Total debt $3.07B Interest coverage 4.18x -12% vs AZZ Has roughly the same debt cushion as AZZ.
Total debt $2.95B Interest coverage 8.66x +82% vs AZZ Carries about 1.8x more debt cushion than AZZ.
Total debt $2.21B Interest coverage 2.83x -40% vs AZZ Carries about 1.7x less debt cushion than AZZ.
Total debt $3.62B Interest coverage 11.43x +140% vs AZZ Carries about 2.4x more debt cushion than AZZ.
What you should know
The case for and against AZZ
3 Rewards
0 Risks
Rewards
-
Revenue grew 1.6% last year.
-
Returns 15.3% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
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)
20.23x
Forward P/E
17.00x
P/B
2.90x
P/S
2.38x
EV/EBITDA
12.38x
PEG ratio
1.20x
Profitability
How much profit each dollar creates
Gross margin
23.8%
Operating margin
17.2%
Net margin
11.8%
ROE
15.3%
ROA
7.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.39x
Current ratio
1.92x
Quick ratio
1.32x
Total debt
$542.82M
Total cash
$1.06M
Growth
How the business has been compounding
Revenue TTM
$1.68B
Revenue 5Y CAGR
33.1%
EPS TTM
6.56
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$247.81M
Free CF TTM
$444.67M
FCF margin
26.5%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
12.2%
Last ex-div date
2026-07-09