AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
4030.17 USD
+22.26 (+0.56%)
4030.17 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AZO. AZO was compared to 120 industry peers in the Specialty Retail industry. While AZO has a great profitability rating, there are quite some concerns on its financial health. AZO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AZO was profitable.
In the past year AZO had a positive cash flow from operations.
AZO had positive earnings in 4 of the past 5 years.
AZO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 13.77%, AZO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
AZO has a better Return On Invested Capital (32.34%) than 98.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AZO is significantly above the industry average of 12.17%.
The 3 year average ROIC (37.29%) for AZO is well above the current ROIC(32.34%). The reason for the recent decline needs to be investigated.
| 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 better Profit Margin (13.56%) than 94.17% 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 (19.63%) than 97.50% of its industry peers.
AZO's Operating Margin has improved in the last couple of years.
AZO's Gross Margin of 52.95% is amongst the best of the industry. AZO outperforms 81.67% of its industry peers.
AZO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZO is creating value.
AZO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AZO has an Altman-Z score of 2.99. 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's Altman-Z score of 2.99 is fine compared to the rest of the industry. AZO outperforms 67.50% 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.
With a decent Debt to FCF ratio value of 4.42, AZO is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 2.99 |
ROIC/WACC3.52
WACC9.19%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AZO may have some problems paying its short term obligations.
With a Current ratio value of 0.84, AZO is not doing good in the industry: 81.67% of the companies in the same industry are doing better.
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.
AZO has a worse Quick ratio (0.12) than 94.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The earnings per share for AZO have decreased by -3.23% in the last year.
The Earnings Per Share has been growing by 15.01% 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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 12.12% on average per year.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y16.72%
EPS Next 2Y14.08%
EPS Next 3Y11.78%
EPS Next 5Y12.12%
Revenue Next Year7.72%
Revenue Next 2Y7.23%
Revenue Next 3Y7.55%
Revenue Next 5Y6.79%
3.3 Evolution
The EPS 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
The Price/Earnings ratio is 27.82, which means the current valuation is very expensive for AZO.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
AZO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.40.
With a Price/Forward Earnings ratio of 23.83, AZO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as AZO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, AZO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZO indicates a slightly more expensive valuation: AZO is more expensive than 60.00% of the companies listed in the same industry.
AZO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AZO is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.53 | ||
| EV/EBITDA | 17.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AZO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)1.85
EPS Next 2Y14.08%
EPS Next 3Y11.78%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4030.17
+22.26 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change-0.08%
Ins Owners0.25%
Ins Owner Change-2.95%
Market Cap67.14B
Analysts81.82
Price Target4637.44 (15.07%)
Short Float %1.47%
Short Ratio2.02
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)9.76%
PT rev (3m)10.13%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 23.83 | ||
| P/S | 3.55 | ||
| P/FCF | 33.53 | ||
| P/OCF | 20.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.52 |
EPS(TTM)144.88
EY3.59%
EPS(NY)169.1
Fwd EY4.2%
FCF(TTM)120.19
FCFY2.98%
OCF(TTM)194.17
OCFY4.82%
SpS1134.54
BVpS-238.56
TBVpS-256.73
PEG (NY)1.66
PEG (5Y)1.85
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 | 2.99 |
F-Score6
WACC9.19%
ROIC/WACC3.52
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)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
EPS Next Y16.72%
EPS Next 2Y14.08%
EPS Next 3Y11.78%
EPS Next 5Y12.12%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.6%
Revenue Next Year7.72%
Revenue Next 2Y7.23%
Revenue Next 3Y7.55%
Revenue Next 5Y6.79%
EBIT growth 1Y-0.1%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year11.01%
EBIT Next 3Y8.94%
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%