Is AZZ, Inc. overvalued or undervalued?

As of 20 June 2025, the valuation grade for AZZ, Inc. has moved from expensive to fair, indicating a more favorable assessment of its value. The company is currently fairly valued based on its P/E ratio of 22, which is in line with peers such as Belden, Inc. at 21.27 and EnerSys at 11.75, although the latter is significantly lower. Additionally, AZZ's EV to EBITDA stands at 11.45, which is competitive compared to the industry average.
In terms of performance metrics, AZZ, Inc. boasts a return on capital employed (ROCE) of 12.60% and a return on equity (ROE) of 12.57%, both of which reflect solid operational efficiency. The company has outperformed the S&P 500 on a one-year basis with a return of 13.74% compared to 10.26%. Overall, AZZ, Inc. appears to be fairly valued in the current market context.