AZZ Story

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AZZ -- USA Stock  

USD 35.36  0.54  1.55%

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. The primary goal of this article is to break down AZZ potential for November. We are going to inspect if AZZ is reasonably priced going into November.
Published over a week ago
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Are AZZ (NYSE:AZZ) investors starting to hold back?
On a scale of 0 to 100, AZZ holds a performance score of 7. The firm shows a Beta (market volatility) of 0.268, which signifies not very significant fluctuations relative to the market. Let's try to break down what AZZ's beta means in this case. As returns on the market increase, AZZ returns are expected to increase less than the market. However, during the bear market, the loss on holding AZZ will be expected to be smaller as well. Although it is extremely important to respect AZZ Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The way in which we are foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining AZZ Inc technical indicators, you can currently evaluate if the expected return of 0.21% will be sustainable into the future. Please makes use of AZZ Inc sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change to make a quick decision on whether AZZ price patterns will revert.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as AZZ Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for AZZ

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

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

The current bullish price patterns experienced by current AZZ Inc shareholders could raise concerns from investors as the firm it trading at a share price of 35.08 on slow start in volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.83. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Returns Breakdown

Return on Investment14.33
Return on Assets0.0509
Return on Equity0.0979
Return Capital0.12
Return on Sales0.0916

Our take on AZZ to turn the corner

The market risk adjusted performance is down to 1.31 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 many of the other players within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, AZZ may offer a potential longer-term growth to investors. While some short-term oriented investors may not share our view, we believe it may be a good time to buy 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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