AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3522.02 USD
+56.57 (+1.63%)
3523.99 USD
+1.97 (+0.06%)
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 121 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- AZO had positive earnings in the past year.
- 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
- The Return On Assets of AZO (12.53%) is better than 87.60% of its industry peers.
- The Return On Invested Capital of AZO (28.76%) is better than 95.87% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.37%.
- The last Return On Invested Capital (28.76%) 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 | 12.53% | ||
| ROE | N/A | ||
| ROIC | 28.76% |
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
- AZO has a better Profit Margin (12.78%) than 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.
- With an excellent Operating Margin value of 18.42%, AZO belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
- In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
- The Gross Margin of AZO (52.15%) is better than 80.99% of its industry peers.
- AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.42% | ||
| PM (TTM) | 12.78% | ||
| GM | 52.15% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZO is creating value.
- The number of shares outstanding for AZO has been reduced compared to 1 year ago.
- The number of shares outstanding for AZO has been reduced compared to 5 years ago.
- AZO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.78 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.78, AZO is doing good in the industry, outperforming 60.33% of the companies in the same industry.
- AZO has a debt to FCF ratio of 4.65. This is a neutral value as AZO would need 4.65 years to pay back of all of its debts.
- The Debt to FCF ratio of AZO (4.65) is better than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.78 |
ROIC/WACC3.03
WACC9.5%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that AZO may have some problems paying its short term obligations.
- AZO's Current ratio of 0.86 is on the low side compared to the rest of the industry. AZO is outperformed by 80.99% of its industry peers.
- AZO has a Quick Ratio of 0.86. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.13, AZO is doing worse than 94.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
- The earnings per share for AZO have decreased by -4.20% in the last year.
- AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
- AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.81%.
- AZO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.44% yearly.
EPS 1Y (TTM)-4.2%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
3.2 Future
- Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.89% on average per year.
- AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.30% yearly.
EPS Next Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.45%
Revenue Next 2Y7.93%
Revenue Next 3Y7.82%
Revenue Next 5Y7.3%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.56, AZO is valued on the expensive side.
- AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 68.59% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, AZO is valued at the same level.
- Based on the Price/Forward Earnings ratio of 19.96, the valuation of AZO can be described as rather expensive.
- 66.12% of the companies in the same industry are more expensive than AZO, based on the Price/Forward Earnings ratio.
- AZO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 19.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZO is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than 62.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.57 | ||
| EV/EBITDA | 16 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AZO does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)7.71
PEG (5Y)1.64
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
- AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3522.02
+56.57 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-02 2026-03-02
Inst Owners94.75%
Inst Owner Change0.16%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap58.57B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts82.42
Price Target4387.49 (24.57%)
Short Float %1.92%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-5.26%
Min EPS beat(2)-5.46%
Max EPS beat(2)-5.06%
EPS beat(4)0
Avg EPS beat(4)-4.99%
Min EPS beat(4)-5.67%
Max EPS beat(4)-3.76%
EPS beat(8)2
Avg EPS beat(8)-2.33%
EPS beat(12)6
Avg EPS beat(12)0.38%
EPS beat(16)10
Avg EPS beat(16)3.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-1.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-1%
Revenue beat(12)3
Avg Revenue beat(12)-0.66%
Revenue beat(16)7
Avg Revenue beat(16)0.34%
PT rev (1m)-5.67%
PT rev (3m)-5.39%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-5.02%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 19.96 | ||
| P/S | 3.04 | ||
| P/FCF | 31.57 | ||
| P/OCF | 18.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)143.4
EY4.07%
EPS(NY)176.48
Fwd EY5.01%
FCF(TTM)111.56
FCFY3.17%
OCF(TTM)195.41
OCFY5.55%
SpS1159.81
BVpS-194.14
TBVpS-212.34
PEG (NY)7.71
PEG (5Y)1.64
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | N/A | ||
| ROCE | 36.07% | ||
| ROIC | 28.76% | ||
| ROICexc | 29.63% | ||
| ROICexgc | 30.59% | ||
| OM | 18.42% | ||
| PM (TTM) | 12.78% | ||
| GM | 52.15% | ||
| FCFM | 9.62% |
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 | 4.65 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 221.96% | ||
| Cap/Sales | 7.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.72% | ||
| Profit Quality | 75.29% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 2.78 |
F-Score6
WACC9.5%
ROIC/WACC3.03
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)-4.2%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-4.55%
EPS Next Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.45%
Revenue Next 2Y7.93%
Revenue Next 3Y7.82%
Revenue Next 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year17.85%
EBIT Next 3Y11.8%
EBIT Next 5Y8.77%
FCF growth 1Y-9.93%
FCF growth 3Y-10.99%
FCF growth 5Y-4.58%
OCF growth 1Y9.14%
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.
Can you provide the valuation status for AUTOZONE INC?
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 24.56 and the Price/Book (PB) ratio is -18.14.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.