F

AZZ Inc. — Earnings Quality Grade F

AZZ · Industrials

Major red flags

Revenue
$1.7B
2026
Net Income
$317M
2026
Gross Margin
23.9%
Free Cash Flow
$445M
01

Screening Summary

15
Passed
0
Watch
2
Failed
-2.76
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 32 days, change +0 days YoY

A2AR vs Revenue Growth

AR growth 5.5% vs revenue growth 4.6%

A3Revenue vs CFFO

Revenue 4.6%, CFFO 110.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 1.0% vs COGS 5.0%. Normal

B2CapEx vs Revenue

CapEx growth -30.3% vs revenue 4.6%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 33.0%. Normal

B4Gross Margin

Gross margin 23.9%, change -0.3pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.66. Profits backed by cash

C2Free Cash Flow

FCF $0.4B, FCF/NI = 1.40

C3Accruals Ratio

Accruals ratio = -9.4%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 0% of debt $0.5B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.1B = 84% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.0x. Healthy

D3Soft Asset Growth

Other assets -16.0% vs revenue 4.6%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.76 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.76
-4.0 Clean-2.22 Grey-1.78 Danger0
1.009
DSRI
AR growing faster than revenue?
1.013
GMI
Gross margin declining?
0.938
AQI
Asset quality deteriorating?
1.046
SGI
Revenue growth rate
0.988
DEPI
Depreciation slowing?
0.852
SGAI
SG&A ratio changing?
-0.0941
TATA
Accruals level
0.666
LVGI
Leverage increasing?
05

Altman Z-Score

4.83
Safe Zone
0 Distress1.102.605.0+ Safe
0.0737
Liquidity
0.3992
Cumulative profit
0.215
Operating efficiency
1.5255
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25