Latest Ratios: P/E Ratio 14.5x · EV/EBITDA 14.4x · ROE 26.6%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.6B | $4.1B | $2.8B | $1.8B | $1.0B | $1.2B | $1.3B | $970M | $1.2B | $1.1B | $1.5B |
| Enterprise Value | $5.1B | $4.6B | $3.7B | $2.8B | $2.1B | $1.5B | $1.5B | $1.2B | $1.5B | $1.3B | $1.8B |
| P/E Ratio → | 14.53 | 12.95 | 53.69 | 21.14 | — | 14.70 | 33.61 | 20.05 | 23.48 | 23.61 | 25.17 |
| P/S Ratio | 2.77 | 2.49 | 1.79 | 1.20 | 0.77 | 2.35 | 2.77 | 0.91 | 1.30 | 1.31 | 1.78 |
| P/B Ratio | 3.45 | 3.07 | 2.70 | 1.97 | 1.19 | 1.85 | 2.13 | 1.53 | 1.99 | 1.88 | 2.89 |
| P/FCF | 10.30 | 9.24 | 21.04 | 12.35 | 77.89 | 21.43 | 24.21 | 8.84 | 13.49 | 21.57 | 21.95 |
| P/OCF | 8.71 | 7.82 | 11.29 | 7.54 | 14.47 | 14.35 | 14.46 | 6.70 | 10.48 | 13.48 | 13.77 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.82 | 2.34 | 1.83 | 1.58 | 2.78 | 3.19 | 1.11 | 1.58 | 1.66 | 2.08 |
| EV / EBITDA | 14.43 | 13.10 | 11.61 | 9.36 | 8.45 | 13.15 | 19.27 | 7.50 | 11.52 | 13.60 | 12.04 |
| EV / EBIT | 19.34 | 9.76 | 14.68 | 11.88 | 11.82 | 18.44 | 32.02 | 15.06 | 18.79 | 30.02 | 17.90 |
| EV / FCF | — | 10.45 | 27.59 | 18.86 | 160.93 | 25.41 | 27.90 | 10.76 | 16.45 | 27.26 | 25.68 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.9% | 23.9% | 24.3% | 23.6% | 22.4% | 27.8% | 25.6% | 22.5% | 21.4% | 19.8% | 23.8% |
| Operating Margin | 16.0% | 16.0% | 15.0% | 14.4% | 13.1% | 15.1% | 9.9% | 10.1% | 8.3% | 6.0% | 11.5% |
| Net Profit Margin | 19.2% | 19.2% | 8.2% | 6.6% | -4.0% | 16.0% | 8.2% | 4.5% | 5.5% | 5.6% | 7.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 26.6% | 26.6% | 13.0% | 11.4% | -7.0% | 13.0% | 6.3% | 7.8% | 8.8% | 8.3% | 12.1% |
| ROA | 14.3% | 14.3% | 5.8% | 4.6% | -3.2% | 7.9% | 3.8% | 4.5% | 4.8% | 4.5% | 6.2% |
| ROIC | 10.5% | 10.5% | 9.3% | 8.6% | 9.2% | 6.9% | 4.3% | 9.4% | 6.7% | 4.4% | 9.5% |
| ROCE | 13.3% | 13.3% | 11.8% | 11.0% | 11.5% | 8.5% | 5.7% | 12.5% | 8.5% | 5.6% | 11.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.40 | 0.40 | 0.84 | 1.05 | 1.27 | 0.36 | 0.35 | 0.39 | 0.48 | 0.53 | 0.51 |
| Debt / EBITDA | 1.52 | 1.52 | 2.76 | 3.25 | 4.37 | 2.17 | 2.74 | 1.57 | 2.26 | 3.05 | 1.83 |
| Net Debt / Equity | — | 0.40 | 0.84 | 1.04 | 1.27 | 0.34 | 0.33 | 0.33 | 0.44 | 0.50 | 0.49 |
| Net Debt / EBITDA | 1.52 | 1.52 | 2.75 | 3.23 | 4.36 | 2.06 | 2.55 | 1.34 | 2.07 | 2.84 | 1.75 |
| Debt / FCF | — | 1.21 | 6.55 | 6.51 | 83.04 | 3.98 | 3.69 | 1.92 | 2.96 | 5.68 | 3.73 |
| Interest Coverage | 8.55 | 8.55 | 3.10 | 2.22 | 2.00 | 12.48 | 5.06 | 5.82 | 5.21 | 3.23 | 6.79 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.70 | 1.70 | 1.70 | 1.89 | 2.23 | 2.57 | 2.60 | 1.26 | 2.30 | 2.50 | 2.17 |
| Quick Ratio | 1.21 | 1.21 | 1.19 | 1.28 | 1.46 | 2.02 | 1.81 | 0.91 | 1.54 | 1.66 | 1.27 |
| Cash Ratio | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | 0.08 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 |
| Asset Turnover | — | 0.75 | 0.71 | 0.70 | 0.60 | 0.46 | 0.48 | 0.99 | 0.85 | 0.79 | 0.88 |
| Inventory Turnover | 11.07 | 11.07 | 10.64 | 9.98 | 7.14 | 4.57 | 3.85 | 8.24 | 5.83 | 5.87 | 5.31 |
| Days Sales Outstanding | — | 60.70 | 58.90 | 56.30 | 72.44 | 61.09 | 144.41 | 71.95 | 86.79 | 87.05 | 80.20 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.6% | 0.0% | 1.7% | 2.2% | 1.4% | 1.3% | 1.8% | 1.5% | 1.7% | 1.1% |
| Payout Ratio | 7.3% | 7.3% | 0.9% | 30.9% | — | 20.1% | 44.5% | 36.9% | 34.6% | 39.1% | 27.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.9% | 7.7% | 1.9% | 4.7% | — | 6.8% | 3.0% | 5.0% | 4.3% | 4.2% | 4.0% |
| FCF Yield | 9.7% | 10.8% | 4.8% | 8.1% | 1.3% | 4.7% | 4.1% | 11.3% | 7.4% | 4.6% | 4.6% |
| Buyback Yield | 0.4% | 0.5% | 0.0% | 0.0% | 0.0% | 2.5% | 3.6% | 0.6% | 0.0% | 0.7% | 0.3% |
| Total Shareholder Yield | 0.9% | 1.0% | 0.0% | 1.7% | 2.2% | 3.9% | 5.0% | 2.4% | 1.5% | 2.4% | 1.4% |
| Shares Outstanding | — | $30M | $29M | $25M | $25M | $25M | $26M | $26M | $26M | $26M | $26M |
M&A Integration and Leverage
According to recent market data, AZZ trades at a forward P/E of 22.91, which suggests that investors are pricing in significant earnings growth potential following the Precoat Metals acquisition, despite the current TTM P/E of 14.92 indicating a more conservative valuation relative to historical averages.
The divergence between TTM and forward multiples implies that the market is anticipating a structural improvement in earnings quality as the company pivots toward a pure-play coatings model. However, the PEG ratio of 0.32 suggests the stock may be undervalued if management successfully executes on its synergy targets, though this remains speculative until the integration is fully reflected in normalized earnings.
Based on reported financial statements, AZZ's ROIC has remained stagnant in the 2.6% to 2.8% range over the last four quarters, indicating that the company is currently struggling to generate returns on invested capital that exceed its likely cost of capital following recent large-scale acquisitions.
The low ROIC relative to peers like Gorman-Rupp suggests that the massive capital outlay for Precoat Metals has significantly expanded the asset base without yet yielding a commensurate increase in operational efficiency. Investors should monitor whether management can improve asset turnover as the integration matures, as current returns appear insufficient to drive long-term shareholder value creation.
As reported in recent filings, AZZ's cash conversion cycle has stabilized around 60 days in 2026Q3, suggesting that the company is maintaining consistent control over its receivables and inventory despite the operational complexities introduced by its recent shift toward a more diversified metal coatings business model.
The DSO of 59-65 days indicates a disciplined approach to collections, which is critical given the transactional nature of the galvanizing business. While the lack of consistent DIO data warrants caution, the overall stability in the CCC suggests that the company is not currently facing significant bottlenecks in its supply chain or customer payment cycles.
The P/E ratio is frequently misapplied to AZZ because it fails to account for the significant non-operating gains and accounting noise resulting from the recent divestiture of the Infrastructure Solutions segment, which artificially inflates net income and obscures the true cash-generating power of the core coatings business.
Analysts should instead focus on EV/EBITDA or P/FCF to normalize for the capital-intensive nature of the galvanizing kettles and the impact of recent M&A-related depreciation. Relying on P/E risks misinterpreting one-time divestiture proceeds as sustainable earnings, potentially leading to an overly optimistic assessment of the company's underlying profitability.
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Quick answers to the most common questions about buying AZZ stock.
AZZ Inc.'s current P/E ratio is 14.5x. The historical average is 17.3x. This places it at the 38th percentile of its historical range.
AZZ Inc.'s current EV/EBITDA is 14.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.7x.
AZZ Inc.'s return on equity (ROE) is 26.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 14.6%.
Based on historical data, AZZ Inc. is trading at a P/E of 14.5x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AZZ Inc.'s current dividend yield is 0.50% with a payout ratio of 7.3%.
AZZ Inc. has 23.9% gross margin and 16.0% operating margin. Operating margin between 10-20% is typical for established companies.
AZZ Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.