AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
4233.3 USD
-88.85 (-2.06%)
4233.3 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AZO. AZO was compared to 121 industry peers in the Specialty Retail industry. While AZO has a great profitability rating, 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.
AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AZO's Return On Assets of 13.77% is amongst the best of the industry. AZO outperforms 87.60% of its industry peers.
With an excellent Return On Invested Capital value of 32.34%, AZO belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AZO is significantly above the industry average of 12.11%.
The last Return On Invested Capital (32.34%) for AZO is well below the 3 year average (37.29%), which needs to be investigated, but indicates that AZO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | N/A | ||
| ROIC | 32.34% |
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
1.3 Margins
AZO has a Profit Margin of 13.56%. This is amongst the best in the industry. AZO outperforms 94.21% 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 Operating Margin of 19.63%. This is amongst the best in the industry. AZO outperforms 97.52% of its industry peers.
In the last couple of years the Operating Margin of AZO has grown nicely.
AZO has a better Gross Margin (52.95%) than 82.64% 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 | 19.63% | ||
| PM (TTM) | 13.56% | ||
| GM | 52.95% |
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.99%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
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
The number of shares outstanding for AZO has been reduced compared to 5 years ago.
The debt/assets ratio for AZO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.10 indicates that AZO is not in any danger for bankruptcy at the moment.
The Altman-Z score of AZO (3.10) is better than 71.07% of its industry peers.
AZO has a debt to FCF ratio of 4.42. This is a neutral value as AZO would need 4.42 years to pay back of all of its debts.
AZO has a better Debt to FCF ratio (4.42) than 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 3.1 |
ROIC/WACC3.44
WACC9.41%
2.3 Liquidity
AZO has a Current Ratio of 0.84. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AZO (0.84) is worse than 81.82% of its industry peers.
AZO has a Quick Ratio of 0.84. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AZO (0.12) is worse than 93.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
AZO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.19%.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.15%.
Measured over the past years, AZO shows a quite strong growth in Revenue. The Revenue has been growing by 9.28% on average per year.
EPS 1Y (TTM)2.19%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-3.62%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y-0.64%
EPS Next 2Y6.12%
EPS Next 3Y7.97%
EPS Next 5Y9.09%
Revenue Next Year2.25%
Revenue Next 2Y4.42%
Revenue Next 3Y5.16%
Revenue Next 5Y5.75%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.65, the valuation of AZO can be described as expensive.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than 61.98% of the companies in the same industry.
AZO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.27.
With a Price/Forward Earnings ratio of 25.11, AZO can be considered very expensive at the moment.
AZO's Price/Forward Earnings is on the same level as the industry average.
AZO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 25.11 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.37 | ||
| EV/EBITDA | 18.46 |
4.3 Compensation for Growth
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y6.12%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4233.3
-88.85 (-2.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.33%
Inst Owner Change0.14%
Ins Owners0.27%
Ins Owner Change-2.96%
Market Cap70.82B
Analysts81.82
Price Target4329.86 (2.28%)
Short Float %1.49%
Short Ratio2.24
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)-4.72%
Min EPS beat(2)-5.67%
Max EPS beat(2)-3.76%
EPS beat(4)0
Avg EPS beat(4)-4.52%
Min EPS beat(4)-5.67%
Max EPS beat(4)-3.76%
EPS beat(8)4
Avg EPS beat(8)-0.47%
EPS beat(12)8
Avg EPS beat(12)2.26%
EPS beat(16)12
Avg EPS beat(16)6.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.49%
Revenue beat(8)2
Avg Revenue beat(8)-0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)9
Avg Revenue beat(16)1.36%
PT rev (1m)2.48%
PT rev (3m)3.83%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.65 | ||
| Fwd PE | 25.11 | ||
| P/S | 3.75 | ||
| P/FCF | 35.37 | ||
| P/OCF | 21.89 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.46 |
EPS(TTM)147.75
EY3.49%
EPS(NY)168.6
Fwd EY3.98%
FCF(TTM)119.69
FCFY2.83%
OCF(TTM)193.36
OCFY4.57%
SpS1129.79
BVpS-237.56
TBVpS-255.65
PEG (NY)N/A
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | N/A | ||
| ROCE | 40.53% | ||
| ROIC | 32.34% | ||
| ROICexc | 33.32% | ||
| ROICexgc | 34.49% | ||
| OM | 19.63% | ||
| PM (TTM) | 13.56% | ||
| GM | 52.95% | ||
| FCFM | 10.59% |
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
ROICexc(3y)38.73%
ROICexc(5y)37.47%
ROICexgc(3y)40.44%
ROICexgc(5y)39.23%
ROCE(3y)46.72%
ROCE(5y)42.54%
ROICexcg growth 3Y-2.92%
ROICexcg growth 5Y-3.24%
ROICexc growth 3Y-2.45%
ROICexc growth 5Y-2.5%
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.99%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.42 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 208.49% | ||
| Cap/Sales | 6.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.2% | ||
| Profit Quality | 78.11% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 3.1 |
F-Score6
WACC9.41%
ROIC/WACC3.44
Cap/Depr(3y)169.09%
Cap/Depr(5y)154.99%
Cap/Sales(3y)4.83%
Cap/Sales(5y)4.48%
Profit Quality(3y)87.28%
Profit Quality(5y)105.17%
High Growth Momentum
Growth
EPS 1Y (TTM)2.19%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-3.62%
EPS Next Y-0.64%
EPS Next 2Y6.12%
EPS Next 3Y7.97%
EPS Next 5Y9.09%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
Revenue Next Year2.25%
Revenue Next 2Y4.42%
Revenue Next 3Y5.16%
Revenue Next 5Y5.75%
EBIT growth 1Y-0.1%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year11.17%
EBIT Next 3Y8.8%
EBIT Next 5Y7.61%
FCF growth 1Y-15.41%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y4.32%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%