AZZ

AZZ

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Specialty Business Services

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/22/26

Business Summary

AZZ generates cash by providing mission-critical galvanizing, metal coating, and infrastructure solutions that protect and extend the life of industrial and utility assets. The moat lies in its entrenched relationships, regulatory-driven demand for corrosion protection, and the high switching costs associated with certified industrial service providers. Its scale allows it to maintain 24.40% operating margins while earning a 20.30% ROIC, indicating disciplined capital allocation in asset-heavy operations. Cash flow durability stems from recurring infrastructure maintenance cycles rather than discretionary spending, giving the business resilience even when broader industrial demand softens.

VALUATION

P/E

12.9

Market Cap ($M USD)

$4,095

Forward P/E

20.3

PEG

4.4

PRICE TO SALES

2.6

PRICE TO BOOK

3.1

EV / EBITDA

8.2

5-Year Average P/E

DIVIDEND

Yield

0.60%

Annual Payout

$0.80

Payout Ratio

6.90%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

3.30%

Financial Health & Profitability

Earnings Per Share

$10.73

Next Year EPS Growth Estimate

$6.78

Next Year Revenue Growth Estimate

6.20%

Return on Equity (ROE)

24.40%

Operating Margin

15.30%

Debt-to-Equity

0.4

Piotroski F-Score

6

Altman Z-Score

4.4

Return on Invested Capital (ROIC)

20.30%%

Current Ratio

1.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 12.9x earnings, AZZ screens optically cheap, but the 20.3x forward P/E and a stretched 4.4 PEG Forward tell a very different story: the market is discounting a sharp deceleration or overestimating forward growth relative to price. The balance sheet is undeniably safe with an Altman Z-Score of 4.4 and a manageable 15.30% Debt/Equity ratio, removing bankruptcy risk from the equation. However, with Return on Equity at just 6.20% versus a far stronger 20.30% ROIC, capital deployment efficiency is uneven, suggesting structural reinvestment constraints. This is not distressed, but it is not screamingly undervalued either — it is a stable compounder priced for moderation rather than acceleration.

AI Exposure / Tech Reliance

Operating in Specialty Business Services within Industrials, AZZ’s exposure to AI is indirect but real: modernization of industrial infrastructure increasingly demands automation-compatible coatings, galvanizing, and engineered services. Companies that maintain critical infrastructure assets benefit from digitization trends because asset life extension and compliance become more data-driven. However, this is an enabler business, not a core AI beneficiary, meaning upside from tech disruption will be incremental rather than exponential.

The Bull Case

A GARP investor can build a credible case here: 24.40% operating margins in an industrial services business are serious, signaling pricing power and operational discipline. A 20.30% ROIC indicates the company generates returns far above its cost of capital, and a Piotroski F-Score of 6 supports underlying financial stability without deterioration flags. Add a conservative 15.30% Debt/Equity ratio, a solid 1.7 current ratio, and minimal short interest at 3.30% of float, and you have a business that institutions can hold comfortably through cycles. The 0.4 TTM yield with a modest payout structure suggests capital is largely retained for reinvestment rather than financial engineering. For investors seeking durable industrial cash generation without balance sheet risk, this profile checks multiple boxes.

The Bear Case

The bear case hinges on valuation relative to growth. A 4.4 PEG Forward is expensive by any disciplined standard, and a 20.3 forward P/E versus 12.9 trailing implies earnings normalization risk or margin compression ahead. Return on Equity at just 6.20% is underwhelming given the 3.1 Price/Book ratio, meaning shareholders are paying a premium for modest equity productivity. The 0.60% dividend per share and thin 0.4 yield offer little downside cushion, and if the $6.78 projected sales growth next year fails to translate into proportional EPS expansion, multiple contraction becomes the primary risk. This is not a broken company — it’s a potentially over-anticipated one.

Market Sentiment & Smart Money

Short Interest %

3.90%

Analyst Consensus

1.8

Average Analyst Price Target

$134.22

Institutional Ownership %

97.60%

1-Year Beta

1.16

Insider Buying % (6 Mo)

1.70%%

Distance to 52-Week High

97.20%%

Distance to 52-Week Low

185.40%%