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 50th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 18% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for AZZ, they are:
Interest coverage, a measure of earnings relative to interest payments, is 3.47; that's higher than 52.34% of US stocks in the Industrials sector that have positive free cash flow.
81% of the company's capital comes from equity, which is greater than 61.43% 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 87.05% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FWRD, LMT, MIDD, TGH, and AIMC can be thought of as valuation peers to AZZ, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
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...