AZZ Incorporated is a global provider of galvanizing services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure. The company was founded in 1956 and is based in Fort Worth, Texas.
AZZ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AZZ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Azz Inc ranked in the 47th percentile in terms of potential gain offered. The most interesting components of our discounted cash flow analysis for Azz Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 3.47; that's higher than 52.31% of US stocks in the Industrials sector that have positive free cash flow.
83% of the company's capital comes from equity, which is greater than 63.7% of stocks in our cash flow based forecasting set.
Azz Inc's effective tax rate, as measured by taxes paid relative to net income, is at 25 -- greater than 87.52% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AZZ, try PCAR, HUBB, OBCI, SLNG, and ATI.
FORT WORTH, Texas, July 21, 2020 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services, announced today that it has successfully completed divesting its Galvabar business. Terms…
AZZ ([[AZZ]] -9.2%) reported Q1 revenue decline of 26.2% Y/Y to $213.3M, with Metal coatings revenue down 2.6% Y/Y and Energy segment revenue down 42.5% Y/Y.Q1 Gross margin declined by 308 bps to 19.8%; and operating margin declined by 400 bps to 6.7%.Net cash used in operating activities was $11.18M, compared to $17.89M a year...