AZZ Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>AZZ</div>
AZZ -- USA Stock  

USD 47.38  1.30  2.67%

It appears AZZ may not recover as fast as we have hopped for as its price went down 0.22% today. AZZ Inc's current daily volatility is 1.97 percent, with a beta of 0.72 and an alpha of 0.23 over DOW. As many millenniums are excited about the current volatility, it is fair to break down AZZ Inc based on its historical price patterns. We will cover the possibilities of making AZZ into a steady grower in November.
Published over three months ago
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How risky is AZZ Inc after the current volatility rise?
AZZ Inc has roughly 26.41 M in cash with 151.47 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.01. AZZ advice module can be used to check and cross-verify current investment recommendation provided by analysts examining the company's potential to grow using all of fundamental, technical, data market data available at this particular time.
Investing in AZZ, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding AZZ along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of AZZ's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of AZZ in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as AZZ. Your research has to be compared to or analyzed against AZZ's peers to derive any actionable benefits. When done correctly, AZZ's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in AZZ Inc.

How important is AZZ's Liquidity

AZZ financial leverage refers to using borrowed capital as a funding source to finance AZZ Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AZZ financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between AZZ's total debt and its cash.

How AZZ utilizes its cash?

To perform a cash flow analysis of AZZ, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AZZ is receiving and how much cash it distributes out in a given period. The AZZ cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AZZ Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. AZZ reported Net Cash Flow from Operations of 166.47 Million in 2020

AZZ Correlation with Peers

Investors in AZZ can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AZZ Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AZZ and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AZZ is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of AZZ for more details

Acquisition by Gary Hill of tradable shares of AZZ subject to Rule 16b-3

Legal trades by AZZ insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AZZ insider trading alert for grant of common stock by Gary Hill, COO - Infrastructure Solutions, on 6th of January 2021. This event was filed by Azz Inc with SEC on 2021-01-06. Statement of changes in beneficial ownership - SEC Form 4. Gary Hill currently serves as president and general manager - azz industrial group of AZZ Inc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for AZZ

AZZ appears to be very steady, given 1 month investment horizon. AZZ Inc secures Sharpe Ratio (or Efficiency) of 0.19, which signifies that the company had 0.19% of return per unit of volatility over the last month. Our outlook to foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for AZZ Inc, which you can use to evaluate future volatility of the firm. Please makes use of AZZ Inc risk adjusted performance of 0.1888, and Mean Deviation of 1.46 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

AZZ has a small chance to finish above $37 in 2 months

Current standard deviation is at 1.98. AZZ Inc has relatively low volatility with skewness of 0.07 and kurtosis of 2.31. However, we advise all investors to independently investigate AZZ Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

While many other companies in the electrical equipment & parts industry are either recovering or due for a correction, AZZ may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of AZZ or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AZZ.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of AZZ Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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