AZZ coats steel and aluminum to protect it from rust and give it a finished look. It galvanizes fabricated steel parts by dipping them in molten zinc, and it paints large coils of sheet metal before they are made into products like appliances, building panels, HVAC units and cans.

What is AZZ's fair value?

On an owner-earnings DCF, AZZ's most-likely fair value is about $104, versus a recent price near $137. A margin-of-safety estimate, not a price target. Analysis, not advice.

Industrials · Specialty Business Services · AZZ

What AZZ Does & How It Makes Money (AZZ)

Updated October 2026 · reflects AZZ's latest reported financials

North American provider of hot-dip galvanizing and coil coating services. AZZ earns service fees for coating metal that customers own, such as steel fabricators' parts and steel or aluminum coils.

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How AZZ makes money

AZZ earns service fees for coating metal that customers own, such as steel fabricators' parts and steel or aluminum coils. It runs this business through two segments, AZZ Metal Coatings and AZZ Precoat Metals, and also charges for related value-added services.

What AZZ does

AZZ Inc. is a Fort Worth, Texas-based metal coatings company founded in 1956 that serves customers across North America. Its AZZ Metal Coatings segment protects fabricated steel from corrosion using hot-dip and spin galvanizing, powder coating, anodizing and plating, mainly for the steel fabrication industry. The AZZ Precoat Metals segment applies protective and decorative coatings to steel and aluminum coils and offers related value-added services. Its main end markets are construction, appliances, HVAC, containers and transportation. Because of this, AZZ's business depends on activity in industrial and building markets.

Products & services

Hot-dip galvanizing
Spin galvanizing
Powder coating
Anodizing and plating
Coil coating for steel and aluminum (AZZ Precoat Metals)

What is AZZ worth?

On an owner-earnings DCF, AZZ's most-likely value is about $104 versus a recent price near $137 (24% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$53) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $137

Fair value (most likely)

$104

Range

$75–$164

No-growth floor

$53

Price

~$137

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

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