| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 49 | 20.8x | 17.3x | Around median | |
Growth | 57 | 5.7% | 7.1% | Around median | |
Quality | 64 | 11.3% | 4.5% | Around median | |
Safety | 77 | 1.1x | 2.6x | Top tier | |
Capital Return | 74 | 0.59% | 0.19% | Top tier | |
Momentum | 75 | 26.1% | 0.2% | Top tier | |
Sentiment | 42 | 6 | 3 | Around median |
The floor: what the company is worth if growth stopped today
60% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.27% as of 2026-10-06. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
AZZ Inc. operates in metal processing through two main segments: Metal Coatings, which provides hot-dip galvanizing services to construction, industrial, and infrastructure customers, and Precoat Metals, which coats aluminum and steel coils used in containers, HVAC, appliances, and transportation. The company benefits from a network of 42 galvanizing plants and from its Digital Galvanizing System and CoilZone technologies to improve process consistency, pricing, and productivity, while also expanding capacity through the Crowley kettle in Texas and the Washington facility in Missouri.
In Q1 fiscal 2027, AZZ reported record revenue of $448.5 million, up 6.3% year over year, and gross profit of $112.2 million at a 25.0% margin, 30 basis points higher. Operating income was $77.0 million at a 17.2% margin, net income was $52.0 million, and GAAP earnings per share were $1.72, while adjusted diluted earnings per share were $1.85.
Growth in Q1 fiscal 2027 came from both segments, but at different rates; Metal Coatings sales increased 12.3%, supported by construction, industrial, and infrastructure, while Precoat Metals sales grew 1.5%, benefiting from higher coating and input costs and increased Washington production, offset by weakness in some construction, HVAC, and appliance markets. By end market, construction grew 3.9%, industrial 7.8%, and containers 194%, while infrastructure was approximately flat, transportation declined 1.2%, and HVAC and appliances declined 2.4%.
The average analyst price target is $150.33, within a relatively narrow range between $144 and $155, with a consensus rating of “Buy.” Both the average target and the highest target are below the 52-week range high of $162.20, while the range low is $92.98; no displayed price-to-earnings ratio is available for comparing valuation with earnings, making the target range alone less sufficient for assessing the margin of safety.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Metal Coatings was the fastest-growing segment in Q1 fiscal 2027, with sales increasing 12.3%, supported by construction, industrial, and infrastructure. The construction market grew 3.9% amid strength in data center and manufacturing projects, while industrial sales rose 7.8% due to large-scale energy projects. The new kettle in Crowley, Texas, also approximately doubled the site's capacity to serve regional galvanizing demand.
The facility specializes in coating aluminum for the food and beverage container category, and its increased production contributed to 194% growth in container sales in Q1 fiscal 2027. The facility is targeting annual sales between $50 million and $60 million when operating at approximately 75% of its capacity contracted with the strategic partner. In the July 9, 2026 call, management said operations were approaching the targeted run rate and that marketing the remaining 25% had begun to enter its commercial discussions.
Automated analysis for informational purposes only — not investment advice.
Gross margin was 25.0% in Q1 fiscal 2027, up 30 basis points, while operating margin increased 70 basis points to 17.2%. Adjusted earnings before interest, taxes, depreciation, and amortization were $99.5 million, equivalent to 22.2% of sales. The company generated $37.1 million in operating cash flow and spent $18.7 million on capital expenditures, with net leverage of 1.4 times.
The first risk is uneven demand, as transportation sales declined 1.2% and HVAC and appliance sales fell 2.4% in Q1 fiscal 2027, while infrastructure was approximately flat. Substrate availability constraints, tariffs, and higher material costs also affected Precoat Metals customers' decisions and inventory management over a period ranging from 18 to 24 months. Price competition on large projects and the reliance of 75% of Washington's operating plan on a strategic partner add risks related to margins and capacity utilization.
The company increased its quarterly cash dividend from $0.20 to $0.24 per share, an increase of 20%, following its Q1 fiscal 2027 results. It had $133.2 million remaining under its share repurchase authorization, but it did not purchase any shares during that quarter. Management balances these returns with funding organic investments and the targeted debt reduction of $130–170 million in fiscal 2027.
