AZZ Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>AZZ</div>
AZZ Receivables Turnover is fairly stable at the moment as compared to the past year. AZZ reported Receivables Turnover of 4.93 in 2019. Accounts Payable Turnover is likely to rise to 21.08 in 2020, whereas Revenue Per Employee is likely to drop slightly above 225.4 K in 2020. AZZ Inc is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 13th of October 2020. The stock is in a buyout trend. Many investors are getting excited about industrials space, let's analyze if AZZ Inc fundamentals are strong enough to attract traders. We will look into reasons why it is still very possible for the company to generate above-average returns. The entity slowly supersedes the market. We can now inspect AZZ as a potential investment option for your portfolios.
Published over a week ago
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Does AZZ (NYSE:AZZ) have strong forward indicators based on the current rise?
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. The company dividends can provide a clue to the current value of the stock. This firm one year expected dividend income is about $0.45 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include AZZ income statement, its balance sheet, and the statement of cash flows. Potential AZZ investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although AZZ investors may use each financial statement separately, they are all related. The changes in AZZ's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on AZZ's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of AZZ fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of AZZ performance into the future periods or doing a reasonable stock valuation. The intrinsic value of AZZ shares is the value that is considered the true value of the share. If the intrinsic value AZZ is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares AZZ. Please read more on our fundamental analysis page.

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 144.76 Million in 2019

AZZ Gross Profit

AZZ Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing AZZ previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show AZZ Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by Philip Schlom of 1523 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 exercise of restricted stock units by Philip Schlom, VP Chief Accounting Officer, on 22nd of October 2020. This event was filed by Azz Inc with SEC on 2020-10-22. Statement of changes in beneficial ownership - SEC Form 4. Philip Schlom currently serves as interim chief financial officer, chief accounting officer, vice president 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

Many companies such as AZZ have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of AZZ is distributed among investors.

Ownership Allocation

AZZ holds a total of twenty-six million two hundred thousand outstanding shares. The majority of AZZ Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in AZZ Inc to benefit from reduced commissions. Accordingly, institutional investors are subject to a different set of regulations than regular investors in AZZ. Please pay attention to any change in the institutional holdings of AZZ Inc as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Retail Investors
5.09%
Institutions
93.35%
Retail Investors5.09
Insiders1.56
Institutions93.35

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AZZ has an asset utilization ratio of 100.41 percent. This suggests that the company is making $1.0 for each dollar of assets. An increasing asset utilization means that AZZ Inc is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
361.7 M
Assets Non Current
692.8 M
Goodwill
448.3 M
Current Assets361.68 Million24.06
Assets Non Current692.8 Million46.09
Goodwill448.35 Million29.83
Tax Assets184,7370.0123

AZZ has 90 percent chance to slide way below $36 in November

The treynor ratio is down to 1.3 as of today. 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.

Our Conclusion on AZZ

While other companies in the electrical equipment & parts industry are either recovering or due for a correction, AZZ may not be as strong as the others in terms of longer-term growth potentials. While some short-term oriented investors may not share our view, we believe it may be a good time to trade new shares of 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 Raphi Shpitalnik 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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