AZZ (AZZ) Valuation Check After 30% Year-to-Date Rally and New Facility Ramp-Up
AZZ (AZZ) has quietly outperformed many industrial peers this year, and with the stock up about 10% over the past month and 30% year to date, investors are starting to revisit the story.
See our latest analysis for AZZ.
That recent 30 day share price return of almost 10% has helped put AZZ back near its highs around $108 per share. When you set that alongside a 3 year total shareholder return above 180%, it suggests momentum in the story is still very much intact rather than fading.
If AZZ’s steady climb has you thinking about what else could surprise to the upside, now is a good time to explore fast growing stocks with high insider ownership.
Yet at around $108, with only a modest discount to analyst targets and a rich multi year run behind it, the key question now is simple: is AZZ still mispriced, or is the market already baking in future growth?
Most Popular Narrative Narrative: 13.9% Undervalued
With the narrative fair value sitting meaningfully above the last close near $108, the current price implies investors are only partly buying into the long term story.
AZZ's new greenfield facility near St. Louis, Missouri is ramping up production, which could drive future revenue growth as it expands capacity and taps into strong local demand. This investment is expected to positively impact earnings as the facility becomes fully operational and contributes to higher sales volumes.
Curious how modest revenue expansion, shrinking margins, and a richer future earnings multiple can still add up to a higher fair value? The narrative leans on a detailed earnings path, disciplined capital allocation, and a valuation multiple usually reserved for faster growing names. Want to see exactly which assumptions make that math work and why the discount rate does not break the case?
Result: Fair Value of $125.89 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent weather disruptions and execution missteps at new facilities could easily undermine the margin and growth assumptions that underpin today’s optimistic valuation.
Find out about the key risks to this AZZ narrative.
Build Your Own AZZ Narrative
If you see the story differently or prefer to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.
A great starting point for your AZZ research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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