AZZSTU:AI7 -1.52%77 Return-on-Tangible-Equity is 31.33% as of Feb. 2026, which is 15% below its 10-year median of 37.01. GuruFocus rates STU:AI7 with a GF Score™ of 77/100 and a GF Value™ of €70.11. The stock has 9 warning signs investors should review. Among 1,009 Business Services companies, AZZ ranks better than 90.39% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AZZ's annualized net income for the quarter that ended in Feb. 2026 was €54 Mil. AZZ's average shareholder tangible equity for the quarter that ended in Feb. 2026 was €172 Mil. Therefore, AZZ's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 31.33%.
The historical rank and industry rank for AZZ's Return-on-Tangible-Equity or its related term are showing as below:
STU:AI7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -87.62 Med: 37.01 Max: 479.53
Current: 270.82
During the past 13 years, AZZ's highest Return-on-Tangible-Equity was 479.53%. The lowest was -87.62%. And the median was 37.01%.
STU:AI7's Return-on-Tangible-Equity is ranked better than 90.39% of 1009
companies
in the Business Services industry
Industry Median: 10.56
vs STU:AI7: 270.82
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
AZZ Return-on-Tangible-Equity Related Terms
AZZ Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AZZ's Return-on-Tangible-Equity 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, AMTM, DLB: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, AZZ's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, AZZ's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AZZ's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 31.33% mean?
AZZ (STU:AI7) has a Return-on-Tangible-Equity of 31.33% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AZZ and its competitors. This is 15% below median its historical median of 37.01. According to the industry distribution chart, AZZ ranks #97 out of 1009 companies in the Business Services industry, placing it in the top 9.6%.
Is AZZ's Return-on-Tangible-Equity too high?
AZZ's current Return-on-Tangible-Equity of 31.33% is 15% below median its 10-year median of 37.01. The Business Services industry median Return-on-Tangible-Equity is 10.56. AZZ's value of 31.33% is 196.7% above this industry median. Based on the distribution chart, AZZ ranks #97 out of 1009 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 Return-on-Tangible-Equity compare to UNF and AMTM?
According to the Business Services industry distribution chart, AZZ ranks #97 out of 1009 companies for Return-on-Tangible-Equity. This places AZZ in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.56. AZZ's value of 31.33% is 196.7% above this benchmark. While the company's 10-year median is 37.01 vs. the industry median of 10.56, 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 Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.56, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AZZ's current Return-on-Tangible-Equity of 31.33% is 196.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AZZ and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AZZ's current Return-on-Tangible-Equity is 31.33%, which is 15% below median its own 10-year median of 37.01. 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 Return-on-Tangible-Equity of 31.33%. The stock's GF Value™ is €70.11, compared to a current price of €130.00 — trading 85.4% above its estimated fair value. The current Return-on-Tangible-Equity is 31.33%, which is 15% below median its 10-year median of 37.01 and 196.7% above the Business Services industry median of 10.56. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AZZ (STU:AI7), the current Return-on-Tangible-Equity is 31.33% 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 €130.00 is trading 85.4% above its estimated GF Value™ of €70.11.
Key valuation signals for STU:AI7:
Return-on-Tangible-Equity: 31.33% (15% below median its 10-year median of 37.01)
GF Value™: €70.11 vs. price of €130.00 (85.4% above fair value)
Industry Position: 196.7% above the Business Services median (#97 of 1009)
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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