AZZ Inc. (AZZ) AI Stock Analysis

AZZ Inc. specializes in delivering essential solutions and services tailored to the power generation, transmission, distribution, refining, and industrial sectors domestically and globally. The company operates through two segments: Metal Coatings and Infrastructure Solutions. Metal Coatings provides metal finishing services for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to enhance the longevity of steel components. Infrastructure Solutions supplies engineered products such as custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion-proof lighting, and tubular products, serving electrical, telecommunications, petrochemical, and bridge and highway construction projects.

Between FY2021 and FY2026, revenue generated a 5-year CAGR of 28.0%, rising from $525.6M in FY2022 to $1.65B in FY2026. Gross margin stood at 23.9% in FY2026, while operating margin reached 16.0% and net income was $317.3M. In the trailing twelve months ended August 31, 2026, revenue totaled $1.75B, with an operating margin of 17.8% and EPS of $5.55. For the quarter ended August 31, 2026, quarterly revenue grew 16.7% year-over-year, while quarterly earnings declined 34.2%. Analysts project revenue of $1.85B and EPS of $7.17 for the fiscal year ending February 28, 2027.

As of August 31, 2026, AZZ held $2.0M in cash and short-term investments alongside total debt of $560.4M, leaving net debt at $558.4M. Shareholders' equity was $1.42B, resulting in a debt-to-equity ratio of 0.40 and a current ratio of 1.79. During FY2026, operating cash flow reached $525.4M. After funding $80.8M in capital expenditures, the company achieved free cash flow of $444.7M. AZZ deployed cash toward $20.0M of share buybacks and paid $23.1M in dividends.

AZZ trades at a trailing P/E of 23.3x, below the 24.8x median of its US-listed Industrials peers. Its forward P/E is 20.3x compared to the peer median of 17.2x, while EV/EBITDA stands at 11.7x against the peer median of 13.9x. The company's price-to-sales multiple is 2.2x, above the sector median of 1.5x. Over the past year, AZZ produced a return of 31.2%, exceeding the S&P 500 (SPY) return of 16.8%. Over five years, the stock gained 157.5% versus 83.0% for the index.

AZZ pays a quarterly dividend with a forward annual rate of $0.96 per share, representing a dividend yield of 0.74%. The dividend payout ratio is 13.1%, and the company has paid dividends for 17 consecutive years. The annualized five-year dividend growth rate is 1.7%, and the most recent ex-dividend date was October 19, 2026.

Wall Street coverage consists of 6 Strong Buy ratings and 5 Hold ratings, with zero Buy, Sell, or Strong Sell recommendations. The mean price target is $162.30, which is 25.3% above the last closing price of $129.56. The company has beaten EPS expectations in each of the last 4 quarters. For the fiscal year ending February 28, 2027, consensus EPS is $7.17, representing 15.9% growth, with next fiscal year EPS estimated at $7.90.

This page is an AI-written research summary of AZZ Inc. (AZZ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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