AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
3856.87 USD
+37.58 (+0.98%)
3856.87 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AZO. AZO was compared to 122 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.
1. Profitability
1.1 Basic Checks
In the past year AZO was profitable.
AZO had a positive operating cash flow in the past year.
AZO had positive earnings in each of the past 5 years.
In the past 5 years AZO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.91%, AZO belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
AZO has a Return On Invested Capital of 29.27%. This is amongst the best in the industry. AZO outperforms 95.08% of its industry peers.
AZO had an Average Return On Invested Capital over the past 3 years of 34.01%. This is significantly above the industry average of 11.80%.
The last Return On Invested Capital (29.27%) for AZO is well below the 3 year average (34.01%), which needs to be investigated, but indicates that AZO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | N/A | ||
| ROIC | 29.27% |
ROA(3y)14.74%
ROA(5y)15.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.01%
ROIC(5y)34.88%
1.3 Margins
The Profit Margin of AZO (13.19%) is better than 94.26% of its industry peers.
In the last couple of years the Profit Margin of AZO has remained more or less at the same level.
AZO has a better Operating Margin (19.06%) than 95.90% of its industry peers.
In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
AZO's Gross Margin of 52.62% is amongst the best of the industry. AZO outperforms 81.15% of its industry peers.
In the last couple of years the Gross Margin of AZO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 13.19% | ||
| GM | 52.62% |
OM growth 3Y-1.79%
OM growth 5Y-0.76%
PM growth 3Y-4.08%
PM growth 5Y-0.78%
GM growth 3Y0.31%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
AZO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AZO has less shares outstanding
AZO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AZO has been reduced compared to a year ago.
2.2 Solvency
AZO has an Altman-Z score of 2.93. This is not the best score and indicates that AZO is in the grey zone with still only limited risk for bankruptcy at the moment.
AZO has a Altman-Z score of 2.93. This is in the better half of the industry: AZO outperforms 64.75% of its industry peers.
AZO has a debt to FCF ratio of 4.92. This is a neutral value as AZO would need 4.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.92, AZO is in the better half of the industry, outperforming 66.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.93 |
ROIC/WACC3.23
WACC9.07%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AZO may have some problems paying its short term obligations.
AZO's Current ratio of 0.88 is on the low side compared to the rest of the industry. AZO is outperformed by 81.15% of its industry peers.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.14, AZO is doing worse than 94.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.23%.
AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 2.43% in the last year.
The Revenue has been growing by 8.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
3.2 Future
The Earnings Per Share is expected to grow by 12.12% on average over the next years. This is quite good.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y12.17%
EPS Next 5Y12.12%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.7%
Revenue Next 5Y6.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.62, the valuation of AZO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 63.93% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. AZO is around the same levels.
The Price/Forward Earnings ratio is 24.76, which indicates a rather expensive current valuation of AZO.
AZO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AZO to the average of the S&P500 Index (34.59), we can say AZO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 24.76 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA is on the same level as the industry average.
AZO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.9 | ||
| EV/EBITDA | 17.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AZO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AZO's earnings are expected to grow with 12.17% in the coming years.
PEG (NY)3.54
PEG (5Y)1.77
EPS Next 2Y12.53%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3856.87
+37.58 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change-0.99%
Ins Owners0.25%
Ins Owner Change-3.08%
Market Cap64.26B
Revenue(TTM)18.94B
Net Income(TTM)2.50B
Analysts81.82
Price Target4656.83 (20.74%)
Short Float %1.24%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.36%
Min EPS beat(2)-5.67%
Max EPS beat(2)-5.06%
EPS beat(4)0
Avg EPS beat(4)-4.63%
Min EPS beat(4)-5.67%
Max EPS beat(4)-3.76%
EPS beat(8)3
Avg EPS beat(8)-1.35%
EPS beat(12)7
Avg EPS beat(12)1.46%
EPS beat(16)11
Avg EPS beat(16)4.9%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-1%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.89%
PT rev (1m)0.42%
PT rev (3m)10.22%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-12.07%
EPS NY rev (1m)-7.88%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 24.76 | ||
| P/S | 3.39 | ||
| P/FCF | 35.9 | ||
| P/OCF | 20.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.23 |
EPS(TTM)144.88
EY3.76%
EPS(NY)155.78
Fwd EY4.04%
FCF(TTM)107.45
FCFY2.79%
OCF(TTM)187.12
OCFY4.85%
SpS1136.78
BVpS-204.94
TBVpS-223.11
PEG (NY)3.54
PEG (5Y)1.77
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | N/A | ||
| ROCE | 36.7% | ||
| ROIC | 29.27% | ||
| ROICexc | 30.1% | ||
| ROICexgc | 31.08% | ||
| OM | 19.06% | ||
| PM (TTM) | 13.19% | ||
| GM | 52.62% | ||
| FCFM | 9.45% |
ROA(3y)14.74%
ROA(5y)15.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.01%
ROIC(5y)34.88%
ROICexc(3y)35.2%
ROICexc(5y)37.22%
ROICexgc(3y)36.57%
ROICexgc(5y)38.86%
ROCE(3y)42.65%
ROCE(5y)43.74%
ROICexgc growth 3Y-9.99%
ROICexgc growth 5Y-1.06%
ROICexc growth 3Y-9.5%
ROICexc growth 5Y-0.73%
OM growth 3Y-1.79%
OM growth 5Y-0.76%
PM growth 3Y-4.08%
PM growth 5Y-0.78%
GM growth 3Y0.31%
GM growth 5Y-0.37%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 216.45% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 73.81% | ||
| Profit Quality | 71.65% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 2.93 |
F-Score6
WACC9.07%
ROIC/WACC3.23
Cap/Depr(3y)190.56%
Cap/Depr(5y)175.25%
Cap/Sales(3y)5.79%
Cap/Sales(5y)5.15%
Profit Quality(3y)76.33%
Profit Quality(5y)93.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y12.17%
EPS Next 5Y12.12%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.7%
Revenue Next 5Y6.79%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year29.4%
EBIT Next 3Y14.6%
EBIT Next 5Y10.84%
FCF growth 1Y-7.32%
FCF growth 3Y-10.99%
FCF growth 5Y-4.58%
OCF growth 1Y3.77%
OCF growth 3Y-0.98%
OCF growth 5Y2.76%
AUTOZONE INC / AZO FAQ
What is the fundamental rating for AZO stock?
ChartMill assigns a fundamental rating of 5 / 10 to AZO.
What is the valuation status for AZO stock?
ChartMill assigns a valuation rating of 4 / 10 to AUTOZONE INC (AZO). This can be considered as Fairly Valued.
What is the profitability of AZO stock?
AUTOZONE INC (AZO) has a profitability rating of 8 / 10.
What is the valuation of AUTOZONE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AUTOZONE INC (AZO) is 26.62 and the Price/Book (PB) ratio is -18.82.
What is the expected EPS growth for AUTOZONE INC (AZO) stock?
The Earnings per Share (EPS) of AUTOZONE INC (AZO) is expected to grow by 7.52% in the next year.