AZZ Inc (AZZ, Financial), a prominent player in the Business Services industry, has recently demonstrated a notable performance in the stock market. With a current market capitalization of $2.39 billion, the company's stock price has surged by 4.11% over the past week and an impressive 10.60% over the past three months, settling at $80.37. This growth trajectory aligns closely with the GF Value of $83.14, suggesting that the stock is currently fairly valued, compared to being modestly undervalued three months ago at a GF Value of $81.71.
Company Overview
AZZ Inc specializes in providing a wide range of metal coating solutions, including hot dip galvanizing, spin galvanizing, powder coating, anodizing, and plating. These services are crucial for protecting metals against corrosion, thereby extending their usability in various industrial applications. The company operates through two main segments: Metal Coatings and Precoat Metals, each dedicated to delivering aesthetic and corrosion-resistant coatings for steel and aluminum coils. This strategic focus has positioned AZZ as a key provider in North America's metal coatings market.
Profitability Insights
AZZ Inc's financial health is robust, with a Profitability Rank of 8/10. The company's Operating Margin stands at 14.41%, which is better than 78.75% of its peers in the industry. Additionally, its Return on Equity (ROE) of 12.67% and Return on Assets (ROA) of 4.60% further demonstrate its efficiency in generating profits relative to its equity and asset bases, respectively. The Return on Invested Capital (ROIC) of 8.56% also highlights the company's effectiveness in turning capital into profits. These metrics not only underscore AZZ's financial health but also its ability to sustain profitability, as evidenced by its consistent performance over the past decade.
Growth Trajectory
Despite a Growth Rank of 4/10, AZZ Inc has shown remarkable growth rates in recent years. The company's 3-Year Revenue Growth Rate per Share stands at an impressive 49.00%, significantly higher than 95.12% of its competitors. This growth is complemented by a 5-Year Revenue Growth Rate per Share of 11.00% and a 3-Year EPS without NRI Growth Rate of 29.00%. Looking ahead, the estimated EPS Growth Rate for the next 3 to 5 years is projected at 14.00%, indicating sustained growth potential. These figures not only reflect AZZ's capacity for growth but also its resilience in navigating market dynamics.
Investor Confidence
Notable investors have shown confidence in AZZ's market strategy and growth potential. Leading the pack is Mario Gabelli (Trades, Portfolio), holding 665,148 shares, which represents 2.24% of the company's shares. Following him are HOTCHKIS & WILEY and Chuck Royce (Trades, Portfolio), holding 173,980 and 20,029 shares, respectively. These investments underscore the trust that seasoned investors have in AZZ's business model and future prospects.
Competitive Landscape
In comparison to its competitors, AZZ Inc holds a strong position. LegalZoom.com Inc (LZ, Financial) with a market cap of $1.65 billion, First Advantage Corp (FA, Financial) at $2.37 billion, and Target Hospitality Corp (TH, Financial) at $1.15 billion are key players in the same industry. AZZ's market cap of $2.39 billion not only places it competitively within this group but also highlights its significant role in the industry.
Conclusion
In summary, AZZ Inc's current market position is solid, characterized by strong profitability, promising growth prospects, and a competitive edge within the Business Services industry. The company's strategic focus on metal coating solutions, combined with its financial health and investor confidence, positions it well for future growth. As the market continues to evolve, AZZ Inc appears well-equipped to maintain its upward trajectory and deliver value to its shareholders.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
