AZZ, Inc. (AZZ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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AZZ, Inc.

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Enovix Corp.

HollySys Automation Technologies Ltd.

QuantumScape Corp.

Why is AZZ, Inc. ?

Healthy long term growth as Operating profit has grown by an annual rate 21.89%

With a growth in Net Profit of 745.7%, the company declared Very Positive results in May 25

OPERATING CASH FLOW(Y) Highest at USD 492.75 MM
ROCE(HY) Highest at 23.85%
DEBT-EQUITY RATIO (HY) Lowest at 49.01 %

With ROCE of 12.60%, it has a fair valuation with a 1.94 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.64%, its profits have risen by 15.2%

Consistent Returns over the last 3 years

Along with generating 15.64% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AZZ, Inc. should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is AZZ, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

AZZ, Inc.

75.82%

1.32

32.87%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.72%

EBIT Growth (5y)

24.66%

EBIT to Interest (avg)

5.73

Debt to EBITDA (avg)

3.69

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

0.83

Tax Ratio

24.71%

Dividend Payout Ratio

38.05%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.97%

ROE (avg)

13.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.78

EV to EBIT

16.71

EV to EBITDA

12.39

EV to Capital Employed

2.26

EV to Sales

2.60

PEG Ratio

0.09

Dividend Yield

0.63%

ROCE (Latest)

13.51%

ROE (Latest)

24.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 525.44 MM

NET PROFIT(9M)

At USD 146.35 MM has Grown at 59.42%

DEBT-EQUITY RATIO (HY)

Lowest at 40.21 %

INVENTORY TURNOVER RATIO(HY)

Highest at 11.09 times

RAW MATERIAL COST(Y)

Fallen by -1.78% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 6.24

-10What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 1.33 MM

PRE-TAX PROFIT(Q)

Lowest at USD 24.59 MM

NET PROFIT(Q)

Lowest at USD 15.93 MM

EPS(Q)

Lowest at USD 0.53

Here's what is working for AZZ, Inc.

Operating Cash Flow

Highest at USD 525.44 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 40.21 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 11.09 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 6.24

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -1.78% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 23.08 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for AZZ, Inc.

Pre-Tax Profit

At USD 24.59 MM has Fallen at -76.9%

over average net sales of the previous four periods of USD 106.47 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 15.93 MM has Fallen at -80.36%

over average net sales of the previous four periods of USD 81.11 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Lowest at USD 24.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 15.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.53

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 1.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents