AZZ Story

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AZZ -- USA Stock  

USD 48.74  0.36  0.74%

AZZ Return on Investment is fairly stable at the moment as compared to the past year. AZZ reported Return on Investment of 13.40 in 2020. Quick Ratio is likely to rise to 1.01 in 2021, whereas Revenue Per Employee is likely to drop slightly above 212.5 K in 2021. While some of us are becoming more passionate about industrials space, it makes sense to break down AZZ Inc in greater detail. We will evaluate why we are still optimistic in anticipation of a recovery. In this post, I will also go over a few different drivers affecting AZZ's products and services, and explain how it may impact AZZ investors.
Published over a week ago
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Reasons AZZ (NYSE:AZZ) can excite investors
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. About 93.0% of the company shares are held by institutions such as insurance companies. AZZ Inc has price-to-book (P/B) ratio of 1.97. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 2.5. The firm last dividend was issued on the 20th of October 2020. AZZ had 2:1 split on the 31st of July 2012.

And What about dividends?

A dividend is the distribution of a portion of AZZ earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. AZZ dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. AZZ one year expected dividend income is about $0.4 per share.
Payment of Dividends and Other Cash Distributions is likely to drop to about (17.3 M) in 2021. Dividend Yield is likely to drop to 0.0194 in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-16 M-17.3 M
Dividend Yield 0.0207  0.0194 
Dividends per Basic Common Share 0.78  0.73 
Investing in dividend-paying stocks, such as AZZ Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in AZZ must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for AZZ. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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

What did AZZ file with SEC?

The SEC filings are financial statements or other formal documents of AZZ Inc that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to AZZ shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Other Events
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to AZZ shareholders may or may not be submitted as SEC does not always require it.

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 asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AZZ has an asset utilization ratio of 97.06 percent. This suggests that the company is making $0.97 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.
 2018 2019 2020 2021 (projected)
Receivables220.45 M209.31 M188.38 M159.47 M
Inventories124.85 M99.84 M89.86 M86.27 M

Analysis of AZZ Inc

Current standard deviation is at 2.4. As of the 11th of January 2021, AZZ shows the risk adjusted performance of 0.2274, and Mean Deviation of 1.82. AZZ Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for AZZ Inc, which can be compared to its rivals. Please confirm AZZ Inc jensen alpha and semi variance to decide if AZZ Inc is priced fairly, providing market reflects its regular price of 49.4 per share. Given that AZZ has jensen alpha of 0.4916, we suggest you to validate AZZ Inc's prevailing market performance to make sure the company can sustain itself next year.

The Current Takeaway on AZZ Investment

While some other entities 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 a less-than optimistic outlook for your 30 days horizon, it may be a good time to drop some or all of your AZZ holdings as it seems the potential growth was already 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 Ellen Johnson 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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