| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 62.49 | -50 |
| Intrinsic value (DCF) | 344.61 | 177 |
| Graham-Dodd Method | 21.98 | -82 |
| Graham Formula | 47.03 | -62 |
AZZ Inc. (NYSE: AZZ) is a leading provider of galvanizing and metal coating solutions, welding services, and specialty electrical equipment, serving critical industries such as power generation, transmission, distribution, refining, and industrial markets. Headquartered in Fort Worth, Texas, AZZ operates through two key segments: Infrastructure Solutions and Metal Coatings. The Metal Coatings segment specializes in corrosion protection solutions, including hot-dip galvanizing, powder coating, and plating, catering to steel fabricators, OEMs, and industries like telecommunications, petrochemical, and infrastructure. The Infrastructure Solutions segment delivers custom switchgear, electrical enclosures, hazardous-duty lighting, and engineered services, supporting industrial and electrical applications. With a strong presence in the U.S. and international markets, AZZ leverages a diversified revenue model through direct sales, distributors, and manufacturers' representatives. Founded in 1956, AZZ plays a vital role in industrial durability and energy infrastructure, positioning itself as a key player in the metal fabrication and electrical equipment sectors.
AZZ Inc. presents a compelling investment case with its diversified industrial exposure, strong market position in corrosion protection, and steady financial performance. The company’s $1.58B revenue and $128.8M net income (FY 2025) reflect stable demand for its infrastructure and metal coating solutions. AZZ’s 1.8 diluted EPS and $249.9M operating cash flow indicate solid profitability, though its high beta (1.252) suggests sensitivity to market volatility. The $879M total debt load warrants monitoring, but the company’s $0.68/share dividend and disciplined capex ($115.9M) demonstrate capital allocation prudence. Risks include cyclical industrial demand and raw material cost pressures, but AZZ’s niche expertise in galvanizing and electrical infrastructure provides resilience.
AZZ Inc. holds a competitive edge through its dual-segment focus on high-value industrial services. In Metal Coatings, AZZ benefits from its market leadership in hot-dip galvanizing—a critical, EPA-compliant corrosion protection method with high barriers to entry due to regulatory and operational complexities. This segment’s recurring revenue model (re-galvanizing demand) and nationwide U.S. plant network create cost advantages. The Infrastructure Solutions segment differentiates via engineered electrical products like explosion-proof lighting and custom switchgear, serving niche industrial and utility markets with stringent safety requirements. AZZ’s vertical integration (e.g., in-house engineering) and long-term client relationships in energy and infrastructure bolster its moat. However, competition is intensifying in electrical equipment from larger players like Hubbell, while regional galvanizers challenge pricing. AZZ’s scale in coatings (~40 U.S. plants) and technical expertise in harsh-environment solutions help mitigate these threats. Strategic acquisitions (e.g., Precoat Metals in 2022) expand its capabilities, though integration execution remains key.