📊 AZZ Key Takeaways
Investment Thesis
AZZ demonstrates strong fundamental health with robust profitability (23.8% net margin, 16.4% operating margin) and exceptional cash generation (31.2% FCF margin, $394.1M free cash flow). The company maintains a solid balance sheet with manageable leverage (0.41x debt/equity) and adequate liquidity (1.66x current ratio), though recent earnings volatility and modest revenue growth warrant monitoring.
AZZ Strengths
- Exceptional free cash flow generation at $394.1M with 31.2% FCF margin demonstrates capital-efficient operations
- Strong profitability metrics across all levels: 24.3% gross margin, 16.4% operating margin, and 23.8% net margin
- Healthy balance sheet with moderate leverage (0.41x debt/equity) and solid interest coverage (4.7x)
- High return on equity (22.8%) and ROA (13.5%) indicating efficient capital deployment
- Strong liquidity position with 1.66x current ratio supporting operational flexibility
AZZ Risks
- Net income surged 145.7% YoY while revenue grew only 2.6%, suggesting earnings volatility and potential one-time items masking underlying business slowdown
- Diluted EPS declined 48.3% YoY despite net income growth, indicating significant share dilution or capital structure changes
- Modest organic revenue growth of 2.6% suggests limited top-line momentum in the coating and engraving services sector
- Cash position of $623.0K is minimal relative to $2.2B in total assets, creating potential liquidity constraints
Key Metrics to Watch
- Organic revenue growth rate and segment-level performance trends
- Operating margin sustainability amid potential margin expansion from one-time items
- Free cash flow conversion and capital allocation decisions (dividends, debt reduction, acquisitions)
- Debt reduction trajectory and long-term leverage management
- Gross margin trends and pricing power in core coating services
AZZ Financial Metrics
💡 AI Analyst Insight
The 31.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
AZZ Profitability Ratios
AZZ vs Default Sector
How AZZ INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AZZ Balance Sheet & Liquidity
AZZ 5-Year Financial Trend
5-Year Trend Summary: AZZ INC's revenue has grown significantly by 49% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.45 indicates the company is currently unprofitable.
AZZ Growth Metrics (YoY)
AZZ Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $403.7M | $33.6M | $1.11 |
| Q2 2026 | $409.0M | $35.4M | $-0.05 |
| Q1 2026 | $413.2M | $39.6M | $-1.38 |
| Q3 2025 | $381.6M | $26.9M | $0.92 |
| Q2 2025 | $398.5M | $28.3M | $-0.05 |
| Q1 2025 | $390.9M | $28.5M | $0.98 |
| Q3 2024 | $373.3M | -$20.5M | $0.92 |
| Q2 2024 | $398.5M | $28.3M | $0.97 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AZZ Capital Allocation
AZZ SEC Filings
Access official SEC EDGAR filings for AZZ INC (CIK: 0000008947)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AZZ
What is the AI rating for AZZ?
AZZ INC (AZZ) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AZZ's key strengths?
Exceptional free cash flow generation at $394.1M with 31.2% FCF margin demonstrates capital-efficient operations. Strong profitability metrics across all levels: 24.3% gross margin, 16.4% operating margin, and 23.8% net margin.
What are the risks of investing in AZZ?
Net income surged 145.7% YoY while revenue grew only 2.6%, suggesting earnings volatility and potential one-time items masking underlying business slowdown. Diluted EPS declined 48.3% YoY despite net income growth, indicating significant share dilution or capital structure changes.
What is AZZ's revenue and growth?
AZZ INC reported revenue of $1.3B.
Does AZZ pay dividends?
AZZ INC pays dividends, with $17.1M distributed to shareholders in the trailing twelve months.
Where can I find AZZ SEC filings?
Official SEC filings for AZZ INC (CIK: 0000008947) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AZZ's EPS?
AZZ INC has a diluted EPS of $9.97.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.