AZZ Inc. (AZZ) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+31.5%

$179.52

vs $136.57 price

Levered DCF

$285.70

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

4.44

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	12.84×	53.39×	20.92×	-16.46×	14.57×	34.22×	20.05×	23.36×
P/B	3.05×	2.67×	1.95×	1.18×	1.83×	2.18×	1.52×	1.98×
P/S	2.47×	1.77×	1.19×	0.76×	2.33×	2.82×	0.91×	1.29×
EV / EBITDA	8.15×	10.99×	8.83×	8.3×	13.03×	16.85×	9.15×	11.39×
Gross margin	23.9%	24.3%	23.6%	22.4%	27.8%	25.6%	22.5%	21.4%
Operating margin	16.0%	15.0%	14.4%	13.1%	15.1%	9.9%	10.1%	8.3%
Net margin	19.2%	8.2%	6.6%	-4.0%	16.0%	8.2%	4.5%	5.5%
Current ratio	1.7×	1.7×	1.89×	2.23×	2.57×	2.6×	1.26×	2.3×
Debt / equity	0.4×	0.84×	1.05×	1.27×	0.36×	0.35×	0.39×	0.48×
Interest coverage	4.76×	2.91×	2.07×	1.96×	12.45×	5.02×	7.96×	5.14×
Dividend yield	0.6%	0.8%	1.7%	2.3%	1.4%	1.3%	1.8%	1.5%
Payout ratio	7.3%	17.9%	30.9%	-42.9%	20.1%	44.5%	36.9%	34.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	23.7%	12.3%	10.9%	-6.2%	12.6%	6.4%	7.6%	8.5%
Return on invested capital	10.0%	8.9%	8.6%	6.4%	5.5%	3.8%	8.6%	6.7%
Return on assets	14.3%	5.8%	4.6%	-2.4%	7.4%	4.0%	4.5%	4.7%
Free cash flow yield	10.9%	4.8%	8.2%	1.3%	4.7%	4.1%	11.4%	7.4%
Earnings yield	7.8%	4.6%	5.6%	-5.2%	6.9%	2.9%	5.0%	4.3%
Enterprise value	$4.6B	$3.7B	$2.8B	$2.1B	$1.5B	$1.6B	$1.2B	$1.5B
Net debt / EBITDA	0.95×	2.63×	3.07×	4.29×	2.06×	2.19×	1.64×	2.06×
Cash conversion cycle (days)	60	61	66	85	117	197	89	123