AZZ Inc (AZZ, Financial), a prominent player in the Business Services industry, has experienced a notable fluctuation in its stock price recently. With a market capitalization of $1.94 billion, the company's shares are currently trading at $77.5. Over the past week, AZZ's stock has seen a decline of 3.87%, yet this short-term loss is overshadowed by a significant gain of 27.99% over the past three months. According to the GF Value, the stock is now considered Fairly Valued at a GF Value of $81.08, a shift from its previous status of Significantly Undervalued when the GF Value was at $88.95.
Introduction to AZZ Inc
AZZ Inc specializes in providing galvanizing, metal coating solutions, and coil coating solutions across North America. The company's Metal Coatings segment offers a range of services to combat corrosion, including hot dip galvanizing, spin galvanizing, powder coating, anodizing, and plating. Its Precoat Metals Segment delivers aesthetic and corrosion-resistant coatings for steel and aluminum coils. This comprehensive suite of services positions AZZ as a key provider in its sector.
Assessing AZZ Inc's Profitability
When it comes to profitability, AZZ Inc holds a strong Profitability Rank of 7 out of 10. The company's Operating Margin stands at an impressive 14.30%, outperforming 78.11% of 1060 companies in the industry. Its ROE (Return on Equity) is 9.64%, which is better than 53.45% of its peers. Additionally, AZZ's ROA (Return on Assets) at 3.84% and ROIC (Return on Invested Capital) at 8.15% both demonstrate the company's ability to generate profits relative to its assets and invested capital. Over the past decade, AZZ has maintained profitability for 9 years, showcasing its consistent performance.
Growth Trajectory of AZZ Inc
AZZ Inc's growth prospects are equally robust, with a Growth Rank of 8 out of 10. The company's 3-Year Revenue Growth Rate per Share is 9.50%, surpassing 56.34% of 978 companies in the same industry. Although the 5-Year Revenue Growth Rate per Share is a modest 0.90%, the estimated Total Revenue Growth Rate for the next 3 to 5 years is a promising 8.39%. Earnings growth also appears strong, with a 3-Year EPS without NRI Growth Rate of 8.70% and a 5-Year EPS without NRI Growth Rate of 11.00%. The future EPS Growth Rate (3Y to 5Y Est) is projected at an impressive 14.00%, indicating potential for continued expansion.
Influential Investors in AZZ Inc
Notable investors have taken significant positions in AZZ Inc, demonstrating confidence in the company's future. Mario Gabelli (Trades, Portfolio) holds 687,248 shares, representing 2.74% of the company, while HOTCHKIS & WILEY owns 229,160 shares, accounting for 0.91%. Chuck Royce (Trades, Portfolio)'s stake of 20,029 shares may seem smaller at 0.08%, but it still signifies an endorsement from a respected investor.
Competitive Landscape
Compared to its competitors, AZZ Inc holds its ground with a market cap of $1.94 billion. First Advantage Corp (FA, Financial) has a slightly higher market cap of $2.22 billion, followed closely by LegalZoom.com Inc (LZ, Financial) at $2.21 billion. BrightView Holdings Inc (BV, Financial) trails with a market cap of $1.06 billion. These figures suggest that AZZ Inc is a significant contender within the Business Services industry, maintaining a competitive position among its peers.
Conclusion
In summary, AZZ Inc's recent stock performance reflects a substantial gain over the past three months, despite a minor setback in the last week. The company's valuation has adjusted from being Significantly Undervalued to Fairly Valued, according to the GF Value. AZZ's profitability metrics and growth rates are commendable, with a strong presence in the market and the backing of influential investors. When juxtaposed with its competitors, AZZ Inc demonstrates a robust market position, suggesting a stable investment opportunity for value investors seeking growth and profitability.
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.
