Discounted Cash Flow (DCF) Analysis Unlevered

AZZ Inc. (AZZ)

$35.8

-0.87 (-2.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 46.99 | 35.8 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 810.43927.091,061.82838.92902.66937.72974.131,011.961,051.261,092.08
Revenue (%)
EBITDA 95.29128.22128.55105.25157.41126.93131.85136.97142.29147.82
EBITDA (%)
EBIT 44.7677.9878.3560.64112.7476.9579.9483.0486.2789.62
EBIT (%)
Depreciation 50.5350.2550.1944.6044.6649.9751.9153.9356.0258.20
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 20.852436.6914.8415.0822.6123.4924.4025.3526.33
Total Cash (%)
Account Receivables 193.28220.45209.31186.18241.65218.12226.59235.39244.53254.02
Account Receivables (%)
Inventories 110.76124.8599.8492.91126.10115.49119.98124.64129.48134.50
Inventories (%)
Accounts Payable 54.1653.0561.9941.0343.9952.5354.5756.6858.8961.17
Accounts Payable (%)
Capital Expenditure -29.61-25.62-35.04-37.08-28.41-32.41-33.67-34.98-36.34-37.75
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 35.8
Beta 1.239
Diluted Shares Outstanding 25.08
Cost of Debt
Tax Rate 20.99
After-tax Cost of Debt 1.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.812
Total Debt 269.41
Total Equity 897.76
Total Capital 1,167.17
Debt Weighting 23.08
Equity Weighting 76.92
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 810.43927.091,061.82838.92902.66937.72974.131,011.961,051.261,092.08
EBITDA 95.29128.22128.55105.25157.41126.93131.85136.97142.29147.82
EBIT 44.7677.9878.3560.64112.7476.9579.9483.0486.2789.62
Tax Rate -46.18%18.72%25.67%22.32%20.99%8.30%8.30%8.30%8.30%8.30%
EBIAT 65.4363.3858.2447.1189.0770.5673.3076.1579.1182.18
Depreciation 50.5350.2550.1944.6044.6649.9751.9153.9356.0258.20
Accounts Receivable --27.1711.1423.12-55.4623.53-8.47-8.80-9.14-9.50
Inventories --14.0925.016.93-33.1910.61-4.48-4.66-4.84-5.03
Accounts Payable --1.128.94-20.952.958.542.042.122.202.29
Capital Expenditure -29.61-25.62-35.04-37.08-28.41-32.41-33.67-34.98-36.34-37.75
UFCF 86.3445.63118.4863.7319.64130.7980.6383.7687.0190.39
WACC
PV UFCF 121.1369.1566.536461.57
SUM PV UFCF 382.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.98
Free cash flow (t + 1) 92.20
Terminal Value 1,541.75
Present Value of Terminal Value 1,050.26

Intrinsic Value

Enterprise Value 1,432.64
Net Debt 254.33
Equity Value 1,178.31
Shares Outstanding 25.08
Equity Value Per Share 46.99