📊 AZZ Key Takeaways
Is Azz Inc. (AZZ) a Good Investment?
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 shows solid underlying fundamentals with healthy operating margins, strong free cash flow generation, and manageable leverage. However, growth quality is mixed because revenue growth is modest while net income appears disproportionately elevated, suggesting possible non-operating or one-time benefits rather than broad-based earnings expansion. The business looks financially sound, but the durability of current earnings strength needs confirmation.
Why Buy Azz Inc. Stock? AZZ 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
- 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
- Strong cash generation with $394.15M in free cash flow and a 31.2% FCF margin
- Healthy profitability profile with 24.3% gross margin, 16.4% operating margin, and 22.8% ROE
- Balance sheet remains manageable with 1.66x current ratio and 0.41x debt-to-equity
AZZ Stock Risks: Azz Inc. Investment 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
- Revenue growth of only 2.6% suggests limited top-line momentum
- Net income growth far outpaces revenue growth, raising concern about earnings quality and sustainability
- Very low cash balance and only moderate 4.7x interest coverage reduce financial flexibility
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
- Organic revenue growth and segment-level margin trends
- Conversion of net income into operating cash flow and free cash flow over future periods
Azz Inc. (AZZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 31.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
AZZ Profit Margin, ROE & Profitability Analysis
AZZ vs Services Sector: How Azz Inc. Compares
How Azz Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Azz Inc. Stock Overvalued? AZZ Valuation Analysis 2026
Based on fundamental analysis, Azz Inc. appears fundamentally strong relative to the Services 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.
Azz Inc. Balance Sheet: AZZ Debt, Cash & Liquidity
AZZ Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
AZZ Quarterly Earnings & 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 Inc. Dividends, Buybacks & Capital Allocation
AZZ SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AZZ's key strengths?
Claude: 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. ChatGPT: Strong cash generation with $394.15M in free cash flow and a 31.2% FCF margin. Healthy profitability profile with 24.3% gross margin, 16.4% operating margin, and 22.8% ROE.
What are the risks of investing in AZZ?
Claude: 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. ChatGPT: Revenue growth of only 2.6% suggests limited top-line momentum. Net income growth far outpaces revenue growth, raising concern about earnings quality and sustainability.
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?
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 rating reflects both perspectives for balanced insights.
Is AZZ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Azz Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AZZ stock overvalued or undervalued?
Valuation metrics for AZZ: ROE of 22.8% (sector avg: 16%), net margin of 23.8% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy AZZ stock in 2026?
Our dual AI analysis gives Azz Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AZZ's free cash flow?
Azz Inc.'s operating cash flow is $452.9M, with capital expenditures of $58.7M. FCF margin is 31.2%.
How does AZZ compare to other Services stocks?
Vs Services sector averages: Net margin 23.8% (avg: 10%), ROE 22.8% (avg: 16%), current ratio 1.66 (avg: 1.5).