AZZ (STU:AI7) Operating Margin %: 14.83% (As of Feb. 2026) — 13% Above Median


STU:AI7 AZZ Inc STU:AI7
77 GF Score
Price €135.00
GF Value €68.10
! 9 Warning Signs
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What is AZZ Operating Margin %?

AZZ STU:AI7 +0.75% 77 Operating Margin % is 14.83% as of Feb. 2026, which is 13% above its 10-year median of 13.18. 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 1,070 Business Services companies, AZZ ranks better than 80.28% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. AZZ's Operating Income for the three months ended in Feb. 2026 was €48 Mil. AZZ's Revenue for the three months ended in Feb. 2026 was €326 Mil. Therefore, AZZ's Operating Margin % for the quarter that ended in Feb. 2026 was 14.83%.

Good Sign:

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

The historical rank and industry rank for AZZ's Operating Margin % or its related term are showing as below:

STU:AI7' s Operating Margin % Range Over the Past 10 Years
Min: 5.95   Med: 13.18   Max: 16.04
Current: 16.04


STU:AI7's Operating Margin % is ranked better than
80.28% of 1070 companies
in the Business Services industry
Industry Median: 6.33 vs STU:AI7: 16.04

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

AZZ's Operating Income for the three months ended in Feb. 2026 was €48 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was €229 Mil.


AZZ  (STU:AI7) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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 Margin % Related Terms


AZZ Operating Margin % Historical Data

* Premium members only.

The historical data trend for AZZ's Operating 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.

AZZ Operating Margin % Chart

AZZ Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.07 13.12 14.41 14.98 16.04

AZZ Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
Operating Margin % 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 11.49 16.48 16.41 16.32 14.83

STU:AI7 vs UNF, MMS, DLB: Operating Margin % Comparison

For the Specialty Business Services subindustry, AZZ's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, AZZ's Operating Margin % distribution charts can be found below:

* The bar in red indicates where AZZ's Operating Margin % falls into.


STU:AI7
77GF Score
AZZ Inc STU:AI7
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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AZZ Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

AZZ's Operating Margin % for the fiscal year that ended in Feb. 2026 is calculated as

Operating Margin %=Operating Income (A: Feb. 2026 ) / Revenue (A: Feb. 2026 )
=223.866 / 1395.968
=16.04 %

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

Operating Margin %=Operating Income (Q: Feb. 2026 ) / Revenue (Q: Feb. 2026 )
=48.33 / 325.792
=14.83 %

* 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 Margin % →
What does a Operating Margin % of 14.83% mean?
AZZ (STU:AI7) has a Operating Margin % of 14.83% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on AZZ and its competitors. This is 13% above median its historical median of 13.18. Over the past decade, AZZ's Operating Margin % has ranged from 5.95 to 16.04. According to the industry distribution chart, AZZ ranks #211 out of 1070 companies in the Business Services industry, placing it in the top 19.7%.
Is AZZ's Operating Margin % too high?
AZZ's current Operating Margin % of 14.83% is 13% above median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 5.95 to a high of 16.04. The Business Services industry median Operating Margin % is 6.33. AZZ's value of 14.83% is 134.3% above this industry median. Based on the distribution chart, AZZ ranks #211 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, AZZ has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does AZZ's Operating Margin % compare to UNF and MMS?
According to the Business Services industry distribution chart, AZZ ranks #211 out of 1070 companies for Operating Margin %. This places AZZ in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. AZZ's value of 14.83% is 134.3% above this benchmark. Historically, AZZ's own Operating Margin % has ranged from 5.95 to 16.04 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 6.33, AZZ has consistently been above 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 Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AZZ's current Operating Margin % of 14.83% is 134.3% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on AZZ and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AZZ's current Operating Margin % is 14.83%, which is 13% above median its own 10-year median of 13.18. 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 Operating Margin % of 14.83%. 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 Operating Margin % is 14.83%, which is 13% above median its 10-year median of 13.18 and 134.3% above the Business Services industry median of 6.33. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For AZZ (STU:AI7), the current Operating Margin % is 14.83% 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:

  • Operating Margin %: 14.83% (13% above median its 10-year median of 13.18)
  • GF Value™: €68.10 vs. price of €135.00 (98.2% above fair value)
  • GF Score™: 77/100 with 9 warning signs
  • Industry Position: 134.3% above the Business Services median (#211 of 1070)

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.
77GF Score

Get the complete analysis for STU:AI7

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

€135.00
Price
€68.10
GF Value