AZZ Story

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

USD 48.60  1.22  2.57%

Whilst many millenniums are getting more into industrials space, it makes sense to break down AZZ Inc. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation sustainable? Here I will cover a perspective on valuation of AZZ to give you a better outlook on taking a position in this stock.
Published over a week ago
View all stories for AZZ | View All Stories
Is AZZ (NYSE:AZZ) ready for a correction?
AZZ Inc has 213.09 M in debt with debt to equity (D/E) ratio of 0.34, which is OK given its current industry classification. The entity has a current ratio of 1.26, demonstrating that it is in a questionable position to pay out its financial commitments when the payables are due. Our investment recommendation tool can be used to complement AZZ trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon.
We determine the current worth of AZZ Inc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of AZZ Inc based exclusively on its fundamental and basic technical indicators. By analyzing AZZ's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of AZZ's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of AZZ. We calculate exposure to AZZ's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to AZZ's related companies.

AZZ Inc Investment Alerts

AZZ investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring AZZ Inc performance across your portfolios.Please check all investment alerts for AZZ

AZZ Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare AZZ value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across AZZ competition to find correlations between indicators driving the intrinsic value of AZZ.

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

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

The firm reported the last year's revenue of 953.17 M. Total Income to common stockholders was 15.14 M with profit before taxes, overhead, and interest of 239.23 M.
 2018 2019 2020 2021 (projected)
Consolidated Income51.21 M48.23 M55.47 M59.75 M
Direct Expenses728.47 M824.59 M742.13 M618.68 M

Margins Breakdown

AZZ profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or AZZ itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of AZZ profit margins.
Operating Margin13.2
EBITDA Margin0.14
Gross Margin0.22
Profit Margin0.0543

AZZ Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The current value of AZZ Earnings Before Interest Taxes and Depreciation Amortization USD is 150,612,562. Also, AZZ Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment.

Another setback for AZZ investors

Current total risk alpha is at 0.24. AZZ Inc currently demonstrates below-verage downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.49. However, we do advice investors to further question AZZ Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on AZZ

While some other firms 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 pick up 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 Raphi Shpitalnik do not own shares of AZZ Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to