AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3837.29 USD
-3.21 (-0.08%)
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 is not valued too expensively and it also shows a decent growth rate.
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
The Return On Assets of AZO (12.91%) is better than 88.52% of its industry peers.
AZO's Return On Invested Capital of 29.27% is amongst the best of the industry. AZO outperforms 96.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 11.71%.
The 3 year average ROIC (34.01%) for AZO is well above the current ROIC(29.27%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 13.19%, AZO belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
AZO's Profit Margin has been stable in the last couple of years.
AZO has a Operating Margin of 19.06%. This is amongst the best in the industry. AZO outperforms 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.
The Gross Margin of AZO (52.62%) is better than 81.97% of its industry peers.
AZO's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AZO 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.92 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZO has a Altman-Z score of 2.92. This is in the better half of the industry: AZO outperforms 70.49% 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.
AZO has a better Debt to FCF ratio (4.92) than 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.92 |
ROIC/WACC3.21
WACC9.12%
2.3 Liquidity
AZO has a Current Ratio of 0.88. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.88, AZO is not doing good in the industry: 80.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
The Quick ratio of AZO (0.14) is worse than 93.44% of its industry peers.
| 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%.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.01% on average per year.
AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.43%.
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
Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.13% yearly.
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y11.86%
EPS Next 5Y11.42%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.81%
Revenue Next 5Y7.13%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 26.49 indicates a quite expensive valuation of AZO.
65.57% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AZO to the average of the S&P500 Index (26.41), we can say AZO is valued inline with the index average.
A Price/Forward Earnings ratio of 24.63 indicates a rather expensive valuation of AZO.
The rest of the industry has a similar Price/Forward Earnings ratio as AZO.
AZO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 24.63 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
AZO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AZO is cheaper than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.65 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)3.52
PEG (5Y)1.76
EPS Next 2Y12.53%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AZO (12/5/2025, 10:01:49 AM)
3837.29
-3.21 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change-6.98%
Ins Owners0.25%
Ins Owner Change-4.07%
Market Cap63.81B
Revenue(TTM)18.94B
Net Income(TTM)2.50B
Analysts81.82
Price Target4658.87 (21.41%)
Short Float %1.78%
Short Ratio2.28
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)0.46%
PT rev (3m)10.27%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.6%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 24.63 | ||
| P/S | 3.37 | ||
| P/FCF | 35.65 | ||
| P/OCF | 20.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.14 |
EPS(TTM)144.88
EY3.78%
EPS(NY)155.78
Fwd EY4.06%
FCF(TTM)107.64
FCFY2.81%
OCF(TTM)187.45
OCFY4.89%
SpS1138.83
BVpS-205.31
TBVpS-223.51
PEG (NY)3.52
PEG (5Y)1.76
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 | 2.92 |
F-Score6
WACC9.12%
ROIC/WACC3.21
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 3Y11.86%
EPS Next 5Y11.42%
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 3Y7.81%
Revenue Next 5Y7.13%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year29.4%
EBIT Next 3Y14.55%
EBIT Next 5Y10.42%
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 26.49 and the Price/Book (PB) ratio is -18.69.
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.