📊 AZTA Key Takeaways
Is Azenta, Inc. (AZTA) a Good Investment?
Azenta is operationally insolvent with catastrophic -59% operating margins and -$173M operating losses on $293.4M revenue, indicating fundamental structural issues in cost management or ongoing restructuring charges. While the balance sheet is conservatively financed and positive free cash flow provides near-term runway, the company loses money on nearly every dollar of revenue, making continued cash burn unsustainable without dramatic operational turnaround. The gap between strong gross margins (42.9%) and massive operating losses reveals severe overhead burden.
Azenta shows solid financial resilience with a cash-rich, lightly levered balance sheet, strong liquidity, and positive free cash flow despite ongoing net and operating losses. Fundamentals suggest the business has time and flexibility to improve, but weak margins and still-negative profitability make the growth quality only moderate rather than compelling.
Azenta, Inc. Key Strengths (AZTA)
- Fortress balance sheet: Low debt/equity of 0.03x with only $49.7M long-term debt and $234.0M cash provides financial flexibility and runway
- Exceptional liquidity: Current ratio of 2.83x and quick ratio of 2.52x indicate strong ability to meet short-term obligations
- Positive free cash flow: $20.8M FCF and $34.4M operating cash flow despite -$176.2M net loss suggests non-cash charges, but validates cash generation capability
- Viable gross economics: 42.9% gross margin demonstrates product-level profitability, limiting issues to operational structure
- Very strong balance sheet with $336.63M in cash, low long-term debt, and debt/equity of just 0.03x
- Healthy liquidity with current ratio of 2.92x and quick ratio of 2.61x, supporting operational flexibility
- Positive operating cash flow and $14.65M of free cash flow indicate the business is still generating cash despite accounting losses
AZTA Stock Risks: Azenta, Inc. Investment Risks
- Catastrophic profitability: -59% operating margin and -60.1% net margin represent severe structural unprofitability; company loses $0.60 per dollar of revenue
- Massive operating losses: -$173M operating loss on $293.4M revenue indicates broken cost structure, likely from high SG&A, asset impairments, or restructuring charges
- Deeply negative returns: ROE of -11.3% and ROA of -9.3% confirm value destruction across all dimensions
- Unsustainable cash burn: Positive FCF masks underlying cash burn from operations; $234M cash will deplete rapidly if losses persist
- Inadequate revenue growth: 3.6% YoY growth is insufficient to offset cost structure; operational leverage works in reverse with current margin profile
- Operating margin of -4.9% and net margin of -10.4% show the core business is still not consistently profitable
- Revenue growth of 3.6% YoY is modest and may be insufficient if cost structure does not improve
- Negative interest coverage reflects weak earnings power and leaves limited cushion if profitability deteriorates further
Key Metrics to Watch
- Operating margin trend and path to profitability - must improve 40+ points from -59% to be viable
- SG&A spending as percentage of revenue - identify cost structure dysfunction
- Cash balance burn rate and runway calculation - determine months until cash depletion if losses continue
- Revenue growth acceleration - assess if business can scale beyond 3.6% to absorb fixed cost base
- Operating cash flow sustainability - verify positive OCF is not temporary and can continue
- Operating margin trend and progress toward sustained positive operating income
- Revenue growth quality alongside free cash flow conversion
Azenta, Inc. (AZTA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.83x current ratio provides a solid financial cushion.
AZTA Profit Margin, ROE & Profitability Analysis
AZTA vs Industrial Sector: How Azenta, Inc. Compares
How Azenta, Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Azenta, Inc. Stock Overvalued? AZTA Valuation Analysis 2026
Based on fundamental analysis, Azenta, Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Azenta, Inc. Balance Sheet: AZTA Debt, Cash & Liquidity
AZTA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Azenta, Inc.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.22 indicates the company is currently unprofitable.
AZTA Revenue Growth, EPS Growth & YoY Performance
AZTA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $143.3M | -$47.7M | $-1.04 |
| Q1 2026 | $147.4M | -$11.0M | $-0.25 |
| Q3 2025 | $143.9M | -$6.6M | $-0.12 |
| Q2 2025 | $136.4M | -$40.5M | $-0.88 |
| Q1 2025 | $141.7M | -$13.3M | $-0.28 |
| Q3 2024 | $165.9M | -$1.5M | $-0.02 |
| Q2 2024 | $148.4M | -$4.9M | $-0.07 |
| Q1 2024 | $154.3M | -$11.2M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Azenta, Inc. Dividends, Buybacks & Capital Allocation
AZTA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Azenta, Inc. (CIK: 0000933974)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AZTA
What is the AI rating for AZTA?
Azenta, Inc. (AZTA) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AZTA's key strengths?
Claude: Fortress balance sheet: Low debt/equity of 0.03x with only $49.7M long-term debt and $234.0M cash provides financial flexibility and runway. Exceptional liquidity: Current ratio of 2.83x and quick ratio of 2.52x indicate strong ability to meet short-term obligations. ChatGPT: Very strong balance sheet with $336.63M in cash, low long-term debt, and debt/equity of just 0.03x. Healthy liquidity with current ratio of 2.92x and quick ratio of 2.61x, supporting operational flexibility.
What are the risks of investing in AZTA?
Claude: Catastrophic profitability: -59% operating margin and -60.1% net margin represent severe structural unprofitability; company loses $0.60 per dollar of revenue. Massive operating losses: -$173M operating loss on $293.4M revenue indicates broken cost structure, likely from high SG&A, asset impairments, or restructuring charges. ChatGPT: Operating margin of -4.9% and net margin of -10.4% show the core business is still not consistently profitable. Revenue growth of 3.6% YoY is modest and may be insufficient if cost structure does not improve.
What is AZTA's revenue and growth?
Azenta, Inc. reported revenue of $293.4M.
Does AZTA pay dividends?
Azenta, Inc. does not currently pay dividends.
Where can I find AZTA SEC filings?
Official SEC filings for Azenta, Inc. (CIK: 0000933974) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AZTA's EPS?
Azenta, Inc. has a diluted EPS of $-3.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AZTA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Azenta, Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AZTA stock overvalued or undervalued?
Valuation metrics for AZTA: ROE of -11.3% (sector avg: 15%), net margin of -60.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AZTA's AI grade for 2026?
Our dual AI analysis gives Azenta, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AZTA's free cash flow?
Azenta, Inc.'s operating cash flow is $34.4M, with capital expenditures of $13.6M. FCF margin is 7.1%.
How does AZTA compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -60.1% (avg: 10%), ROE -11.3% (avg: 15%), current ratio 2.83 (avg: 1.8).