AZZ Inc. (AZZ)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I start with the business: AZZ provides hot-dip galvanizing and coil coating, practical corrosion protection for steel and aluminum. That can be a decent industrial niche, but the numbers show a modest moat rather than a wide one. FairStock's ROCE is 7.77%, which is not the high return on capital I look for. Fiscal 2025, ended 2026-02-28, was strong: revenue $1.7B and net income $317.3M, up from net income $128.8M in fiscal 2024 and $101.6M in fiscal 2023. But the latest filed quarter, fiscal Q2 2026 ended 2026-08-31, showed revenue of $486.9M, up from $417.3M in fiscal Q2 2025, while net income fell to $58.5M from $89.3M. That margin volatility matters. The balance sheet looks reasonable: D/E 0.39, Altman Z 3.80, Piotroski 7/9, and trailing free cash flow of $169.2M, a 4.1% FCF yield. ROE is 15.31%, decent but aided by leverage. Valuation is the rub. At the 2026-10-13 close of $136.71, FairStock's P/E is 20.84, P/B 2.98, EV/EBITDA 11.56, and Graham Number $82.26, leaving a negative margin of safety of 66.19%. FairStock classifies it as a TURNAROUND because it returned to profit after a loss within three years. I would call this a fair-to-good business at a full price, not a bargain. I need evidence that recent margin pressure is temporary and that returns on capital can improve before the price offers a true Graham-style cushion.

In plain English: AZZ Inc. coats steel and aluminum so they resist rust and corrosion, mainly for industrial customers in North America. The business is profitable and carries manageable debt, but its latest reported quarter showed lower profit than a year earlier even though sales rose. At $136.71, the shares look expensive compared with the company's reported earnings and book value, so the price appears full rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-31) · fiscal Q1 2026 10-Q (period ended 2026-05-31) · fiscal Q3 2025 10-Q (period ended 2025-11-30) · fiscal Q2 2025 10-Q (period ended 2025-08-31) · FY2025 10-K (period ended 2026-02-28) · FY2024 10-K (period ended 2025-02-28) · FY2023 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer