AZZ Inc. is a leading provider of metal coating solutions and coil coating services. The company operates through two main segments: Metal Coatings and Precoat Metals. The Metal Coatings segment provides hot-dip galvanizing services, while the Precoat Metals segment offers coil coating services. AZZ Inc. has a strong competitive position in these segments, supported by economies of scale and innovative technology solutions
Financial Performance and Ratios
In the third quarter of fiscal year 2025, AZZ Inc. reported consolidated sales of $404 million, a 5.8% increase from the prior year’s quarter. The Metal Coatings segment saw a 3.3% increase in sales, while the Precoat Metals segment experienced a 7.6% increase. The company’s EBITDA margin for Metal Coatings was 31.5%, and for Precoat Metals, it was 19.1%.
AZZ Inc. also reported a net income of $33.6 million, up 25% from the prior year. The company’s debt to adjusted EBITDA ratio improved to 2.6 times, down from 3.1 times in the prior year.
AZZ Inc. Stock Price Performance
AZZ Inc.’s stock price has shown positive performance over the past year, reflecting the company’s strong financial results and growth. The stock price has increased by approximately 15% over the past 12 months, driven by robust sales growth and improved.
Investment Insight
AZZ Inc. is a compelling mid-cap stock for your investment portfolio. While its Investment Scoreboard may not rank the highest among our calculations, we identify significant potential for the company to generate robust cash flows and deliver enhanced returns for shareholders. Despite a modest price forecast, it indicates strong annual growth, aligning with our expectations.
AZZ Inc. Stock Forecast**
When to buy?
As of now, the stock price has rebounded from its all-time high (ATH). This development is not unexpected, given that the positive market impact has waned and a correction has initiated. We anticipate that the correction may persist for a while, presenting an excellent opportunity to purchase the company’s shares once it stabilizes.
Dividend Policy
AZZ Inc. has a consistent dividend policy, with cash dividends paid to common shareholders. In the third quarter of fiscal year 2025, the company paid $5.1 million in cash dividends. The annual dividend yield is approximately 2.5%, providing a steady income stream for shareholders.
Conclusion
AZZ Inc. is a leading provider of metal coating solutions and coil coating services with strong financial performance and promising stock price forecasts. The company’s robust cash flow generation, coupled with its consistent dividend policy, makes it an attractive mid-cap stock for investors. Despite recent stock price corrections, the company’s growth potential and stable financials indicate a positive outlook for long-term returns.
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company’s ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.
Originally published at https://www.aipt.lt on January 9, 2025.
Unlocking AZZ Inc.’s Growth Potential: A Stock to Watch! was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.