# Azz (AZZ.US)

Canonical: https://gigainvestors.com/s/AZZ

Analysis as of: 2026-10-16T07:26:45.056Z. Financial observations: FY1997–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $130.59 per share; close as of 2026-10-15.

Estimated value: low $46.38 per share, central $54.76 per share, high $63.72 per share. Buy at or below the central value $54.76 per share. Valuation as of 2026-10-16T07:26:45.056Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.06×

- FY2019: 0.08×

- FY2020: 0.10×

- FY2021: 0.10×

- FY2022: 0.15×

- FY2023: 0.13×

- FY2024: 0.14×

- FY2025: 0.15×

- FY2026: 0.16×

- LTM to May 2026: 0.16×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.4%

- ROIC, second-lowest year: 7.7%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 23.8%

- Recent gross margin (lower of latest and 3-year median): 24.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.8%

- ROIC including acquisitions, ten-year median: 7.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 9.2%

- FY2019: 12.5%

- FY2020: 17.7%

- FY2021: 7.6%

- FY2022: 7.7%

- FY2023: 10.7%

- FY2024: 14.4%

- FY2025: 14.6%

- FY2026: 17.2%

- LTM to May 2026: 17.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $592M

- Net income, five-year total: $579M

- Return on incremental invested capital: 1295.4%

- Working capital / revenue, annual change: -1.8 pp

- Working capital / revenue, change between three-year averages: -13.0 pp

- Working capital / revenue, final three-year average: 16.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.04×

- FY2023: 0.67×

- FY2024: 1.00×

- FY2025: 0.86×

- FY2026: 1.03×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 12.5% vs 14.6%

- Per-share earnings: 2.33 to 4.39 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: 3.0%

- Market cap gain: $2.5B

- Cumulative retained earnings: $389M

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: 3.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 8.2%

- Per-share value change: $2.06

- Per-share value, starting three-year median: $2.33

- Per-share value, ending three-year median: $4.39

- Buybacks concentrated in cheaper years (correlation): -0.13

- Average buyback yield: 2.1%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $987M

- Cumulative net income, 10 years: $824M

- ROIC, first three-year median: 12.5%

- ROIC, last three-year median: 14.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.33

- FY2018: $1.73

- FY2019: $1.96

- FY2020: $1.84

- FY2021: $1.52

- FY2022: $3.35

- FY2023: -$2.12

- FY2024: $4.03

- FY2025: $4.39

- FY2026: $10.50

### accounting: pass

- Sloan accruals: -9.4%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 2.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.66×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.84×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.1%

- FY2018: -3.3%

- FY2019: -5.8%

- FY2020: -9.0%

- FY2021: -5.3%

- FY2022: -0.2%

- FY2023: -6.5%

- FY2024: -6.5%

- FY2025: -5.4%

- FY2026: -9.4%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 12.8% a year for ten years · "AZZ Raises Outlook as Grid, Data Center Demand Powers Growth Strategy" (finance.yahoo.com, Aug 2026) · sales +1.6%

Story as of 2026-10-16T09:58:21.714Z; price observation 2026-10-15.

Price needs cash profits to grow 12.8% a year for ten years

- 2025-04-23: AZZ Q1 Earnings: Weather Disruptions Drive Revenue Miss, Guidance Remains Stable ([finance.yahoo.com](https://finance.yahoo.com/news/azz-q1-earnings-weather-disruptions-030452841.html))

- 2025-07-09: Azz beats Q1 earnings estimates, provides solid guidance ([investing.com](https://www.investing.com/news/earnings/azz-beats-q1-earnings-estimates-provides-solid-guidance-93CH-4128935))

- 2025-10-09: AZZ shares tumble after quarterly earnings miss estimates ([seekingalpha.com](https://seekingalpha.com/news/4503043-azz-shares-tumble-after-quarterly-earnings-miss-estimates?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-24: AZZ Q1 Deep Dive: Data Center Demand and Infrastructure Tailwinds Offset Residential Softness ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/azz-q1-deep-dive-data-085323235.html))

### Sales · FY2026–2027

sales +1.6%; source https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm; observed 2026-04-22.

- FY2018: $810M 

- FY2019: $927M 

- FY2020: $1.1B 

- FY2021: $481M 

- FY2022: $526M 

- FY2023: $1.3B 

- FY2024: $1.5B 

- FY2025: $1.6B 

- FY2026: $1.7B 

- FY2027: $1.7B 

### Gross margin · FY2027

gross margin 24%; source https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm; observed 2026-04-22.

- FY2018: 19.8% 

- FY2019: 21.4% 

- FY2020: 22.5% 

- FY2021: 25.6% 

- FY2022: 27.8% 

- FY2023: 22.4% 

- FY2024: 23.6% 

- FY2025: 24.3% 

- FY2026: 23.9% 

- FY2027: 24.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are USD 1.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm (filed 2026-04-22); FY2026: revenue 1650080000; grossProfit 394955000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AZZ.US: AZZ Inc. provides hot-dip galvanizing and coil coating solutions in North America. 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.

### Why customers stay

Margins ranged from 23.6% to 24.3% during 2024–26; it earns 13.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2024: grossProfit / revenue = 23.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2025: grossProfit / revenue = 24.3%.

- Source: https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm (filed 2026-04-22); FY2026: grossProfit / revenue = 23.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); 10-year return on capital observations [[2018,0.09208723169535327],[2019,0.12450375561427983],[2020,0.17670411727258403],[2021,0.07639414171241984],[2022,0.07653377759591655],[2023,0.10702927356327574],[2024,0.14399155310133102],[2025,0.1463249199032941],[2026,0.17219301617303298],[2027,0.17218876304176875]]; median 0.13424765435780542. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 20 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2017: growth capex 0; upkeep 41434000; owner earnings 69844000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2018: growth capex 0; upkeep 29612000; owner earnings 66083000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2019: growth capex 0; upkeep 25616000; owner earnings 75837000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2020: growth capex 0; upkeep 35044000; owner earnings 63384000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2021: growth capex 0; upkeep 37079000; owner earnings 34629000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2022: growth capex 0; upkeep 28405000; owner earnings 87698000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2024: growth capex 15696000; upkeep 79423000; owner earnings 101607000. Growth capex / owner earnings = 0.15447754583837728.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); FY2025: growth capex 16096245.604308873; upkeep 99786754.39569113; owner earnings 111251245.60430887. Growth capex / owner earnings = 0.1446837338033854.

- Source: https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm (filed 2026-04-22); FY2026: growth capex 0; upkeep 80776000; owner earnings 326540000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); Dividend observations: [[2017,16645000],[2018,17678000],[2019,17718000],[2020,17822000],[2021,17642000],[2022,16874000],[2023,22739000],[2024,31418000],[2025,23108000],[2026,23075000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm (filed 2026-04-22); FY2026: cash repurchases 20000000 USD.

### Are managers owners

Insiders own 1.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AZZ.US SharesStats.PercentInsiders = 1.7340000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.8% yearly over ten years; actual growth was 12.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-22); Ten-year compound average after fade. Initial solved rate 0.17127488514086575. Price 130.59; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 3.2519566642248527 → FY2026 10.808645857469134. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $53.25 per share

- 2016-11: $65.10 per share

- 2016-12: $63.90 per share

- 2017-01: $59.55 per share

- 2017-02: $58.65 per share

- 2017-03: $59.50 per share

- 2017-04: $59.05 per share

- 2017-05: $54.25 per share

- 2017-06: $55.80 per share

- 2017-07: $50.70 per share

- 2017-08: $48.90 per share

- 2017-09: $48.70 per share

- 2017-10: $47.80 per share

- 2017-11: $48.10 per share

- 2017-12: $51.10 per share

- 2018-01: $45.50 per share

- 2018-02: $40.85 per share

- 2018-03: $43.70 per share

- 2018-04: $44.55 per share

- 2018-05: $43.25 per share

- 2018-06: $43.45 per share

- 2018-07: $54.20 per share

- 2018-08: $53.75 per share

- 2018-09: $50.50 per share

- 2018-10: $44.35 per share

- 2018-11: $47.74 per share

- 2018-12: $40.36 per share

- 2019-01: $44.75 per share

- 2019-02: $46.02 per share

- 2019-03: $40.93 per share

- 2019-04: $47.49 per share

- 2019-05: $42.08 per share

- 2019-06: $46.02 per share

- 2019-07: $46.58 per share

- 2019-08: $41.27 per share

- 2019-09: $43.56 per share

- 2019-10: $38.79 per share

- 2019-11: $38.07 per share

- 2019-12: $45.95 per share

- 2020-01: $41.26 per share

- 2020-02: $36.89 per share

- 2020-03: $28.12 per share

- 2020-04: $31.39 per share

- 2020-05: $31.66 per share

- 2020-06: $34.32 per share

- 2020-07: $31.58 per share

- 2020-08: $34.73 per share

- 2020-09: $34.12 per share

- 2020-10: $33.59 per share

- 2020-11: $44.59 per share

- 2020-12: $47.44 per share

- 2021-01: $47.59 per share

- 2021-02: $51.09 per share

- 2021-03: $50.35 per share

- 2021-04: $52.64 per share

- 2021-05: $53.49 per share

- 2021-06: $51.78 per share

- 2021-07: $52.99 per share

- 2021-08: $53.55 per share

- 2021-09: $53.20 per share

- 2021-10: $53.13 per share

- 2021-11: $51.89 per share

- 2021-12: $55.29 per share

- 2022-01: $47.58 per share

- 2022-02: $49.23 per share

- 2022-03: $48.24 per share

- 2022-04: $45.64 per share

- 2022-05: $44.76 per share

- 2022-06: $40.82 per share

- 2022-07: $42.54 per share

- 2022-08: $42.61 per share

- 2022-09: $36.51 per share

- 2022-10: $40.20 per share

- 2022-11: $41.63 per share

- 2022-12: $40.20 per share

- 2023-01: $42.48 per share

- 2023-02: $40.65 per share

- 2023-03: $41.24 per share

- 2023-04: $37.73 per share

- 2023-05: $34.91 per share

- 2023-06: $43.46 per share

- 2023-07: $44.33 per share

- 2023-08: $49.10 per share

- 2023-09: $45.58 per share

- 2023-10: $47.27 per share

- 2023-11: $49.17 per share

- 2023-12: $58.09 per share

- 2024-01: $62.45 per share

- 2024-02: $72.80 per share

- 2024-03: $77.31 per share

- 2024-04: $71.63 per share

- 2024-05: $83.88 per share

- 2024-06: $77.25 per share

- 2024-07: $79.96 per share

- 2024-08: $83.17 per share

- 2024-09: $82.61 per share

- 2024-10: $76.18 per share

- 2024-11: $93.14 per share

- 2024-12: $81.92 per share

- 2025-01: $85.79 per share

- 2025-02: $96.11 per share

- 2025-03: $83.61 per share

- 2025-04: $86.76 per share

- 2025-05: $90.69 per share

- 2025-06: $94.48 per share

- 2025-07: $109.50 per share

- 2025-08: $112.89 per share

- 2025-09: $109.13 per share

- 2025-10: $99.85 per share

- 2025-11: $105.42 per share

- 2025-12: $107.18 per share

- 2026-01: $124.29 per share

- 2026-02: $135.98 per share

- 2026-03: $125.13 per share

- 2026-04: $143.04 per share

- 2026-05: $135.51 per share

- 2026-06: $155.05 per share

- 2026-07: $144.72 per share

- 2026-08: $137.16 per share

- 2026-09: $134.39 per share

- 2026-10: $130.59 per share

## Annual estimated value (USD per share)

- FY2017: low $38.82 per share, central $51.40 per share, high $60.17 per share

- FY2018: low $27.92 per share, central $31.75 per share, high $36.84 per share

- FY2019: low $34.47 per share, central $42.43 per share, high $49.46 per share

- FY2020: low $40.22 per share, central $50.46 per share, high $58.82 per share

- FY2021: low $16.60 per share, central $18.86 per share, high $21.87 per share

- FY2022: low $18.74 per share, central $21.32 per share, high $24.75 per share

- FY2023: low $44.77 per share, central $54.85 per share, high $63.96 per share

- FY2024: low $44.06 per share, central $50.13 per share, high $58.22 per share

- FY2025: low $41.44 per share, central $47.15 per share, high $54.76 per share

- FY2026: low $43.59 per share, central $51.47 per share, high $59.89 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/8947/000000894726000068/azz-20260228.htm); period 2026-02-28, filed 2026-04-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.