DCF Tool

AZZ

AZZ Inc
welcome to the official linked in page of azz incorporated. azz is a specialty electrical equipment manufacturer and provider of highly engineered services to the global power generation, industrial, transmission and distribution markets, as well as a leading provider of hot dip galvanizing services to the north american steel fabrication market. we offer products through two distinct business segments; the energy segment and the galvanizing segment. within the energy segment, our product portfolio includes custom switchgear, electrical enclosures, medium and high voltage ducts, hazardous and specialty lighting, and tubular products. we are also a leading third party supplier of safety related equipment to the nuclear industry, as well as a leading specialty repair and overhaul solution provider to industrial and utility markets worldwide. our galvanizing services segment provides hot dip galvanizing to the steel fabrication industry through our extensive network of thirty-six faciliti
Analysis Results
Intrinsic Value $108.73
Latest Price $75.61
Relative Value 30% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 6.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2024 154 142
2025 164 140
2026 175 138
2027 188 137
2028 201 135
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3280 million. This corresponds to a present value of 2040 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 692 million. Adding in the terminal value gives a total present value of 2730 million.

There are presently 25.1 million outstanding shares, so the intrinsic value per share is 108.73.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 417,416,000
Current Cash 2,820,000
Current Liabilities 187,240,000
Current Debt 284,000
Non-Cash Working Capital (NCWC) 227,640,000
Change in NCWC 6,542,000
EBIT 176,235,000
Tax Provision 22,336,000
Depreciation and Amortization 74,590,000
Capital Expenditure -57,120,000
Unlevered Free Cash Flow 155,855,853
Current Assets 386,533,000
Current Cash 15,082,000
Current Liabilities 150,531,000
Current Debt 178,000
Non-Cash Working Capital (NCWC) 221,098,000
Change in NCWC 46,293,000
EBIT 111,543,000
Tax Provision 22,323,000
Depreciation and Amortization 44,665,000
Capital Expenditure -28,405,000
Unlevered Free Cash Flow 150,681,881
Current Assets 303,492,000
Current Cash 14,837,000
Current Liabilities 113,850,000
Current Debt 0
Non-Cash Working Capital (NCWC) 174,805,000
Change in NCWC 12,543,000
EBIT 81,613,000
Tax Provision 11,383,000
Depreciation and Amortization 44,603,000
Capital Expenditure -37,079,000
Unlevered Free Cash Flow 83,463,226
Current Assets 354,562,000
Current Cash 36,687,000
Current Liabilities 280,613,000
Current Debt 125,000,000
Non-Cash Working Capital (NCWC) 162,262,000
Change in NCWC -27,507,000
EBIT 97,975,000
Tax Provision 16,656,000
Depreciation and Amortization 50,194,000
Capital Expenditure -35,044,000
Unlevered Free Cash Flow 60,469,724
Current Assets 378,545,000
Current Cash 24,005,000
Current Liabilities 164,771,000
Current Debt 0
Non-Cash Working Capital (NCWC) 189,769,000
Change in NCWC -1,079,000
EBIT 76,956,000
Tax Provision 11,797,000
Depreciation and Amortization 50,245,000
Capital Expenditure -25,616,000
Unlevered Free Cash Flow 86,096,827
Current Assets 329,154,000
Current Cash 20,853,000
Current Liabilities 131,739,000
Current Debt 14,286,000
Non-Cash Working Capital (NCWC) 190,848,000
Change in NCWC 25,239,000
EBIT 48,248,000
Tax Provision -14,270,000
Depreciation and Amortization 50,526,000
Capital Expenditure -29,612,000
Unlevered Free Cash Flow 94,401,000
Current Assets 297,052,000
Current Cash 11,302,000
Current Liabilities 136,770,000
Current Debt 16,629,000
Non-Cash Working Capital (NCWC) 165,609,000
Change in NCWC 21,679,000
EBIT 98,908,000
Tax Provision 24,033,000
Depreciation and Amortization 50,357,000
Capital Expenditure -41,434,000
Unlevered Free Cash Flow 101,642,009
Current Assets 309,334,000
Current Cash 40,191,000
Current Liabilities 148,405,000
Current Debt 23,192,000
Non-Cash Working Capital (NCWC) 143,930,000
Change in NCWC -4,901,000
EBIT 122,288,000
Tax Provision 27,578,000
Depreciation and Amortization 47,417,000
Capital Expenditure -39,861,000
Unlevered Free Cash Flow 92,629,853
Current Assets 298,634,000
Current Cash 22,527,000
Current Liabilities 149,142,000
Current Debt 21,866,000
Non-Cash Working Capital (NCWC) 148,831,000
Change in NCWC 3,382,646
EBIT 106,825,000
Tax Provision 25,187,000
Depreciation and Amortization 46,089,000
Capital Expenditure -29,377,000
Unlevered Free Cash Flow 97,067,196
Current Assets 296,180,723
Current Cash 27,564,533
Current Liabilities 144,016,050
Current Debt 20,848,214
Non-Cash Working Capital (NCWC) 145,448,354
Change in NCWC 43,227,660
EBIT 100,113,791
Tax Provision 34,314,206
Depreciation and Amortization 43,304,902
Capital Expenditure -43,471,526
Unlevered Free Cash Flow 106,594,277
Current Assets 262,431,939
Current Cash 55,597,751
Current Liabilities 118,899,208
Current Debt 14,285,714
Non-Cash Working Capital (NCWC) 102,220,694
Change in NCWC 6,480,324
EBIT 97,983,986
Tax Provision 33,912,627
Depreciation and Amortization 29,363,147
Capital Expenditure -24,922,987
Unlevered Free Cash Flow 73,692,692

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.