Quality Investor

AZZ Inc.

Rank #391Hypergrowth

AZZ · NYSE · Industrials

AZZ Inc. (AZZ) — Rank #391 by gross profitability (GP/assets 0.18) · ROE 23.1% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0000008947 · all metrics point-in-time as of the filing date.

About

AZZ Inc. provides hot-dip galvanizing and coil coating solutions in North America.

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It operates through the AZZ Metal Coatings; and the AZZ Precoat Metals segments. The company offers metal coating solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to the steel fabrication and other industries. It also provides aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coil primarily serving the construction; appliance; heating, ventilation, and air conditioning; container; transportation; and other end markets. AZZ Inc.

was incorporated in 1956 and is headquartered in Fort Worth, Texas.

Industry
Specialty Business Services
Sector
Industrials
State
TX
Filer Category
Large accelerated filer
Fiscal Year End
February 28
Website
azz.com

Price History

AZZ+171.4% · +22.1% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$3.95B

P/E (annual)

12.5

P/S (annual)

2.4

P/B

2.9

P/OCF (annual)

7.5

Shareholder Yield

-15.1%

Employees

3,767

Industry

Specialty Business Services

Exchange

NYSE

Signal Flags

3 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.18
Return on equity
23.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.64
Current ratio
1.92×
Net cash
-$479.55M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

1/2 pass
Revenue growth
78.0%
Piotroski F-Score
6 / 9
Share dilution
15.7%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-3.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 15.7% — per-share value needs a total required return of 12.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 14.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-7.1%

r = 10% (base)

-3.5%

r = 12%

-0.3%

Net debt / market cap: 12.1%

Base FCF: $444.7M3Y mean FCF: $109.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
8.8xmed 15.8x34.4x

P / S

Price / revenue per share

0.7xCheap
0.7xmed 0.9x1.6x

P / B

Price / book value per share

1.1xCheap
1.1xmed 1.4x2.2x

P / GP

Price / gross profit per share

3.2xFair
3.0xmed 3.8x7.2x

P / FCF

Price / free cash flow per share

28.0xExpensive
4.7xmed 15.0x28.0x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

13th of 15 SIC 34 peers

Return on equity

23.1%

Gross margin

23.9%

14th of 15 SIC 34 peers

Revenue growth (YoY)

78.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2020202120222023
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

7.6%

Revenue CAGR (5Y)

28.0%

Earnings CAGR (3Y)

FCF CAGR (3Y)

134.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.64

5th of 15 SIC 34 peers (best = lowest)

Current ratio

1.92×

11th of 15 SIC 34 peers

Quick ratio

0.72×

Net cash

-$479.55M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$444.67M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.40

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
7.3%5/5 Strong
FCF coverage
19.27×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.64 · IC 4.76×3/5 Good

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20182023
Capital Return
Decline
Value
Hypergrowth