Should Quality Investors Include NYSE:AZO in Their Portfolio?

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.

What matters for quality investors.

• AUTOZONE INC has achieved substantial revenue growth over the past 5 years, with a 9.28% 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 37.86%, 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 4.74, 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.
• AUTOZONE INC demonstrates consistent Profit Quality over the past 5 years, with a strong 105.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• AUTOZONE INC has experienced impressive EBIT growth over the past 5 years, with 11.32% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• AUTOZONE INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NYSE:AZO

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO against 119 industry peers in the Specialty Retail industry. AZO scores excellent on profitability, but there are some minor concerns on its financial health. AZO has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of AZO contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.