AZZ Incorporated Net Income vs. Return On Equity

AZZ Stock  USD 75.02  0.80  1.08%   
Based on the measurements of profitability obtained from AZZ Incorporated's financial statements, AZZ Incorporated's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess AZZ Incorporated's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1990-05-31
Previous Quarter
26.9 M
Current Value
17.9 M
Quarterly Volatility
7.9 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to drop to 0.86 in 2024. Days Sales Outstanding is likely to drop to 54.60 in 2024. At this time, AZZ Incorporated's Operating Income is fairly stable compared to the past year. Income Before Tax is likely to rise to about 136.6 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (4.1 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.2364
Fairly Up
Pretty Stable
For AZZ Incorporated profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AZZ Incorporated to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AZZ Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AZZ Incorporated's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AZZ Incorporated over time as well as its relative position and ranking within its peers.
  
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Is AZZ Incorporated's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AZZ Incorporated. If investors know AZZ will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AZZ Incorporated listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.02
Dividend Share
0.68
Earnings Share
3.46
Revenue Per Share
61.403
Quarterly Revenue Growth
0.089
The market value of AZZ Incorporated is measured differently than its book value, which is the value of AZZ that is recorded on the company's balance sheet. Investors also form their own opinion of AZZ Incorporated's value that differs from its market value or its book value, called intrinsic value, which is AZZ Incorporated's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AZZ Incorporated's market value can be influenced by many factors that don't directly affect AZZ Incorporated's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AZZ Incorporated's value and its price as these two are different measures arrived at by different means. Investors typically determine if AZZ Incorporated is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AZZ Incorporated's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

AZZ Incorporated Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining AZZ Incorporated's current stock value. Our valuation model uses many indicators to compare AZZ Incorporated value to that of its competitors to determine the firm's financial worth.
AZZ Incorporated is number one stock in net income category among related companies. It is number one stock in return on equity category among related companies . The ratio of Net Income to Return On Equity for AZZ Incorporated is about  766,992,084 . At this time, AZZ Incorporated's Net Income is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value AZZ Incorporated by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AZZ Incorporated's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AZZ Incorporated's earnings, one of the primary drivers of an investment's value.

AZZ Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

AZZ Incorporated

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
87.21 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

AZZ Incorporated

Return On Equity

 = 

Net Income

Total Equity

 = 
0.11
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

AZZ Return On Equity Comparison

AZZ Incorporated is currently under evaluation in return on equity category among related companies.

AZZ Incorporated Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in AZZ Incorporated, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AZZ Incorporated will eventually generate negative long term returns. The profitability progress is the general direction of AZZ Incorporated's change in net profit over the period of time. It can combine multiple indicators of AZZ Incorporated, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3.9 M-4.1 M
Operating Income221.6 M232.7 M
Income Before Tax130.1 M136.6 M
Total Other Income Expense Net15.6 M16.3 M
Net Income87.2 M91.6 M
Income Tax Expense28.5 M29.9 M
Net Income Applicable To Common Shares48.2 M35.9 M
Net Income From Continuing Ops101.6 M67.7 M
Non Operating Income Net Other-990 K-940.5 K
Interest Income13.5 M24 M
Net Interest Income-107.1 M-101.7 M
Change To Netincome34.7 M36.4 M
Net Income Per Share 4.06  4.26 
Income Quality 2.80  1.45 
Net Income Per E B T 0.78  0.55 

AZZ Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on AZZ Incorporated. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AZZ Incorporated position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AZZ Incorporated's important profitability drivers and their relationship over time.

Use AZZ Incorporated in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AZZ Incorporated position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AZZ Incorporated will appreciate offsetting losses from the drop in the long position's value.

AZZ Incorporated Pair Trading

AZZ Incorporated Pair Trading Analysis

The ability to find closely correlated positions to AZZ Incorporated could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AZZ Incorporated when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AZZ Incorporated - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AZZ Incorporated to buy it.
The correlation of AZZ Incorporated is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AZZ Incorporated moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AZZ Incorporated moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AZZ Incorporated can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your AZZ Incorporated position

In addition to having AZZ Incorporated in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Healthcare
Healthcare Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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When determining whether AZZ Incorporated offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AZZ Incorporated's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Azz Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Azz Incorporated Stock:
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For more information on how to buy AZZ Stock please use our How to Invest in AZZ Incorporated guide.
Note that the AZZ Incorporated information on this page should be used as a complementary analysis to other AZZ Incorporated's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running AZZ Incorporated's price analysis, check to measure AZZ Incorporated's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AZZ Incorporated is operating at the current time. Most of AZZ Incorporated's value examination focuses on studying past and present price action to predict the probability of AZZ Incorporated's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AZZ Incorporated's price. Additionally, you may evaluate how the addition of AZZ Incorporated to your portfolios can decrease your overall portfolio volatility.
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To fully project AZZ Incorporated's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AZZ Incorporated at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AZZ Incorporated's income statement, its balance sheet, and the statement of cash flows.
Potential AZZ Incorporated investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although AZZ Incorporated investors may work on each financial statement separately, they are all related. The changes in AZZ Incorporated's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on AZZ Incorporated's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.