AZZ (STU:AI7) Operating Income: €233 Mil (TTM As of May. 2026)


STU:AI7 AZZ Inc STU:AI7
83 GF Score
Price €127.00
GF Value €72.90
Valuation Significantly Overvalued
! 6 Warning Signs
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What is AZZ Operating Income?

AZZ STU:AI7 -5.93% 83 Operating Income is €233 Mil as of May. 2026. GuruFocus rates STU:AI7 with a GF Score™ of 83/100 and a GF Value™ of €72.90 (Significantly Overvalued). The stock has 6 warning signs investors should review.

AZZ's Operating Income for the three months ended in May. 2026 was €66 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was €233 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. AZZ's Operating Income for the three months ended in May. 2026 was €66 Mil. AZZ's Revenue for the three months ended in May. 2026 was €384 Mil. Therefore, AZZ's Operating Margin % for the quarter that ended in May. 2026 was 17.17%.

Good Sign:

AZZ Inc operating margin is expanding. Margin expansion is usually a good sign.

AZZ's 5-Year average Growth Rate for Operating Margin % was 3.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AZZ's annualized ROC % for the quarter that ended in May. 2026 was 12.12%. AZZ's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 42.58%.

AZZ  (STU:AI7) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

AZZ's annualized ROC % for the quarter that ended in May. 2026 is calculated as:

ROC % (Q: May. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2026 ) + Invested Capital (Q: May. 2026 ))/ count )
=263.76 * ( 1 - 21.22% )/( (1689.867 + 1739.323)/ 2 )
=207.790128/1714.595
=12.12 %

where

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1872.599 - 182.136 - ( 0.596 - max(0, 196.504 - 334.481+0.596))
=1689.867

Invested Capital(Q: May. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1927.989 - 187.759 - ( 0.907 - max(0, 195.893 - 376.686+0.907))
=1739.323

Note: The Operating Income data used here is four times the quarterly (May. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

AZZ's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2026  Q: May. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=264.612/( ( (565.863 + max(33.241, 0)) + (573.851 + max(70.038, 0)) )/ 2 )
=264.612/( ( 599.104 + 643.889 )/ 2 )
=264.612/621.4965
=42.58 %

where Working Capital is:

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(120.68 + 95.947 + 5.776) - (182.136 + 0 + 7.026)
=33.241

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(140.274 + 103.744 + 13.779) - (187.759 + 0 + 2.8421709430404E-14)
=70.038

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

AZZ's Operating Margin % for the quarter that ended in May. 2026 is calculated as:

Operating Margin %=Operating Income (Q: May. 2026 )/Revenue (Q: May. 2026 )
=65.94/383.942
=17.17 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

AZZ Operating Income Related Terms

AZZ Operating Income Historical Data

* Premium members only.

The historical data trend for AZZ's Operating Income 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.

AZZ Operating Income Chart

AZZ Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 69.79 162.18 205.42 226.91 223.87

AZZ Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 61.69 58.81 60.10 48.33 65.94
STU:AI7
83GF Score
AZZ Inc STU:AI7
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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AZZ Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €233 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €233 Mil mean?
AZZ (STU:AI7) has a Operating Income of €233 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on AZZ and its competitors.
Is AZZ's Operating Income too high?
AZZ's current Operating Income is €233 Mil. Overall, AZZ has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AZZ's Operating Income compare to UNF and AMTM?
AZZ's Operating Income of €233 Mil can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Business Services company?
A good Operating Income depends on the Business Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on AZZ and its competitors. AZZ's current Operating Income is €233 Mil. 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?
Based on GuruFocus' analysis, AZZ (STU:AI7) is currently considered Significantly Overvalued. The stock's GF Value™ is €72.90, compared to a current price of €127.00 — trading 74.2% above its estimated fair value. The current Operating Income is €233 Mil. AZZ's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For AZZ (STU:AI7), the current Operating Income is €233 Mil as of May. 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 €127.00 is trading 74.2% above its estimated GF Value™ of €72.90. GuruFocus considers AZZ to be Significantly Overvalued.

Key valuation signals for STU:AI7:

  • Operating Income: €233 Mil
  • GF Value™: €72.90 vs. price of €127.00 (74.2% above fair value)
  • GF Score™: 83/100 with 6 warning signs

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 Business Description

Other Exchanges AZZ:USAAI7:Germany
Address 3100 West 7th Street, Suite 500, One Museum Place, Fort Worth, TX, USA, 76107
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.
83GF Score

Get the complete analysis for STU:AI7

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€127.00
Price
€72.90
GF Value