One-glance verdict
Undervalued
$301.01 our estimate vs market $150.85
Wall Street consensus: $164.00 (-45.5% lower than our fair-value estimate)
50% below our estimate, below the bear case
Fundamentals snapshot
AZZ Inc.
AZZ · NYQ · Industrials · Specialty Business Services
Current price
$150.85
52-week range
$92.98 - $162.20
Market cap
$4.53B
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. is a company that specializes in protecting metal from rust and wear by applying special coatings. It makes money primarily by dipping finished steel parts in protective molten zinc and by pre-painting large coils of metal that other companies use to make things like building materials, appliances, and car parts. Because these protective coatings are essential for making products last longer in major industries like construction and transportation, AZZ’s business often reflects the health of the broader economy.
How the company got here
AZZ began in 1956 as a small Texas company focused on welding and metal work for local industries. Over many years, it expanded into metal coatings, building a large network of facilities to protect steel from rust. A major turning point came in 2022 when AZZ sold off its other businesses to focus purely on coatings. That same year, it made a large acquisition of Precoat Metals, transforming the company into a leading North American coatings provider.
What it actually does
Think of AZZ as a professional protector of metal. The company doesn't make steel or aluminum itself; instead, it provides special coatings that prevent rust and improve the appearance of metal used in buildings, infrastructure, and everyday products. Its services are essential for making things last longer, from highway guardrails to the metal casing on your air conditioner. AZZ operates as a business-to-business company, meaning its customers are other companies in industries like construction, transportation, and manufacturing.
AZZ Metal Coatings
This is AZZ's original and long-standing business, focused on protecting steel structures after they've been built. Its main service is hot-dip galvanizing, a process where a finished steel part, like a beam or a pole, is dipped into a vat of molten zinc. This creates a tough, protective layer that prevents rust for decades. Customers in the utility, construction, and agriculture industries pay AZZ to treat their fabricated steel to extend the life of their equipment and infrastructure.
AZZ Precoat Metals
This part of the company applies coatings to giant rolls of steel and aluminum *before* they are cut and shaped into final products. This 'coil coating' process is highly efficient and can apply a wide range of colors and protective finishes. Companies that make products like roofing, garage doors, appliances, and HVAC systems buy this pre-coated metal. This segment became a huge part of AZZ's business after a major acquisition in 2022.
What management is betting on now
Management's strategy is to be a focused, pure-play coatings company. A top priority is paying down the debt taken on to buy Precoat Metals, which strengthens the company's financial health. They are also investing in organic growth (expanding their own facilities to meet new demand), such as building a new plant to coat aluminum for the beverage can industry. The company aims to capitalize on long-term trends like the reshoring (bringing manufacturing back to North America) of manufacturing and increased spending on infrastructure like the power grid and data centers.
Price history
How the share price has moved
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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 $301.01 vs current price $150.85
Wall Street consensus is the average analyst price target: $164.00 (-45.5% lower than our fair-value estimate).
Our most-likely fair value is $301.01 a share — about 99.5% above today's price of $150.85, 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)
23.14x
Forward P/E
19.32x
P/B
3.29x
P/S
2.70x
EV/EBITDA
13.87x
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
6.52
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
0.6%
Payout ratio
12.2%
Last ex-div date
2026-07-09