AZZSTU:AI7 +0.75%77 Gross Margin % is 22.75% as of Feb. 2026, which is 4% below its 10-year median of 23.71. GuruFocus rates STU:AI7 with a GF Score™ of 77/100 and a GF Value™ of €68.10. The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, AZZ ranks worse than 68.72% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. AZZ's Gross Profit for the
three
months ended in Feb. 2026 was €74 Mil. AZZ's Revenue for the
three
months ended in Feb. 2026 was €326 Mil. Therefore, AZZ's Gross Margin % for the quarter that ended in Feb. 2026 was 22.75%.
Warning Sign:
AZZ Inc gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for AZZ's Gross Margin % or its related term are showing as below:
STU:AI7'
s Gross Margin % Range Over the Past 10 Years
Min: 19.78 Med: 23.71 Max: 27.81
Current: 23.94
During the past 13 years, the highestGross Margin % of AZZ was 27.81%. The lowest was 19.78%. And the median was 23.71%.
STU:AI7's Gross Margin % is ranked worse than 68.72% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs STU:AI7: 23.94
AZZ had a gross margin of 22.75% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for AZZ was -1.90% per year.
AZZ (STU:AI7) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
AZZ had a gross margin of 22.75% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
AZZ Gross Margin % Related Terms
AZZ Gross Margin % Historical Data
* Premium members only.
The historical data trend for AZZ's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:AI7 vs UNF, MMS, DLB: Gross Margin % Comparison
For the Specialty Business Services subindustry, AZZ's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AZZ Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, AZZ's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AZZ's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
AZZ (STU:AI7) has a Gross Margin % of 22.75% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AZZ and its competitors. This is near median its historical median of 23.71. Over the past decade, AZZ's Gross Margin % has ranged from 19.78 to 27.81. According to the industry distribution chart, AZZ ranks #692 out of 1007 companies in the Business Services industry, placing it in the top 68.7%.
Is AZZ's Gross Margin % too high?
AZZ's current Gross Margin % of 22.75% is near median its 10-year median of 23.71. Over the past 10 years, this metric has ranged from a low of 19.78 to a high of 27.81. The Business Services industry median Gross Margin % is 34.46. AZZ's value of 22.75% is 34% below this industry median. Based on the distribution chart, AZZ ranks #692 out of 1007 companies in the Business Services industry, which is below the industry midpoint. Overall, AZZ has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does AZZ's Gross Margin % compare to UNF and MMS?
According to the Business Services industry distribution chart, AZZ ranks #692 out of 1007 companies for Gross Margin %. This places AZZ in the lower half of its industry. The industry median Gross Margin % is 34.46. AZZ's value of 22.75% is 34% below this benchmark. Historically, AZZ's own Gross Margin % has ranged from 19.78 to 27.81 over the past decade. While the company's 10-year median is 23.71 vs. the industry median of 34.46, AZZ has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AZZ's current Gross Margin % of 22.75% is 34% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on AZZ and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AZZ's current Gross Margin % is 22.75%, which is near median its own 10-year median of 23.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AZZ stock overvalued right now?
AZZ (STU:AI7) has a current Gross Margin % of 22.75%. The stock's GF Value™ is €68.10, compared to a current price of €135.00 — trading 98.2% above its estimated fair value. The current Gross Margin % is 22.75%, which is near median its 10-year median of 23.71 and 34% below the Business Services industry median of 34.46. AZZ's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For AZZ (STU:AI7), the current Gross Margin % is 22.75% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AZZ (STU:AI7) Overvalued in 2026?
Based on GuruFocus' analysis, AZZ stock appears to be overvalued.
The current stock price of €135.00 is trading 98.2% above its estimated GF Value™ of €68.10.
Key valuation signals for STU:AI7:
Gross Margin %: 22.75% (near median its 10-year median of 23.71)
GF Value™: €68.10 vs. price of €135.00 (98.2% above fair value)
Industry Position: 34% below the Business Services median (#692 of 1007)
No single metric tells the full story. See the STU:AI7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AZZ Inc is a provider of galvanizing and coil coating solutions to a broad range of end markets in North America. The company's operating segment consists of AZZ Metal Coatings, AZZ Precoat Metals, and AZZ Infrastructure Solutions. The company generates the majority of its revenue from the Precoat Metals segment, which provides coil coating application of protective and decorative coatings and related value-added downstream processing for steel and aluminum coils. Geographically, the company operates in the United States and Canada.
77GF Score
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