Should you consider NYSE:AZO for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if AUTOZONE INC (NYSE:AZO) is suited for quality investing. Investors should of course do their own research, but we spotted AUTOZONE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:AZO.

• AUTOZONE INC has achieved substantial revenue growth over the past 5 years, with a 9.24% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of AUTOZONE INC stands at 40.18%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• AUTOZONE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.71, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of AUTOZONE INC stands at 111.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• AUTOZONE INC has consistently achieved strong EBIT growth over the past 5 years, with a 13.92% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• AUTOZONE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NYSE:AZO

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO against 126 industry peers in the Specialty Retail industry. AZO scores excellent on profitability, but there are concerns on its financial health. AZO has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of AZO

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.