Why quality investors should have a look at AUTOZONE INC (NYSE:AZO).

In this article we will dive into AUTOZONE INC (NYSE:AZO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed AUTOZONE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:AZO highlighted

• The 5-year revenue growth of AUTOZONE INC has been remarkable, with 9.28% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• AUTOZONE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 37.86% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• AUTOZONE INC maintains a healthy Debt/Free Cash Flow Ratio of 4.74, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 105.0%, AUTOZONE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, AUTOZONE INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NYSE:AZO?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO against 120 industry peers in the Specialty Retail industry. While AZO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AZO has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of AZO for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.