AUTOZONE INC (AZO)
US0533321024 - Common Stock
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
AZO had positive earnings in the past year.
AZO had a positive operating cash flow in the past year.
Each year in the past 5 years AZO has been profitable.
AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AZO's Return On Assets of 15.50% is amongst the best of the industry. AZO outperforms 93.39% of its industry peers.
AZO has a better Return On Invested Capital (35.73%) than 98.35% 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 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.5% | ||
| ROE | N/A | ||
| ROIC | 35.73% |
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
The Profit Margin of AZO (14.40%) is better than 96.69% 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 20.49%. This is amongst the best in the industry. AZO outperforms 99.17% of its industry peers.
In the last couple of years the Operating Margin of AZO has grown nicely.
AZO's Gross Margin of 53.09% is amongst the best of the industry. AZO outperforms 80.99% of its industry peers.
AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.49% | ||
| PM (TTM) | 14.4% | ||
| GM | 53.09% |
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.98%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
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.
The number of shares outstanding for AZO has been reduced compared to 1 year ago.
Compared to 5 years ago, AZO has less shares outstanding
Compared to 1 year ago, AZO has a worse debt to assets ratio.
2.2 Solvency
AZO has an Altman-Z score of 2.84. 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.
The Altman-Z score of AZO (2.84) is better than 64.46% of its industry peers.
AZO has a debt to FCF ratio of 4.88. This is a neutral value as AZO would need 4.88 years to pay back of all of its debts.
AZO has a Debt to FCF ratio of 4.88. This is in the better half of the industry: AZO outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.88 | ||
| Altman-Z | 2.84 |
ROIC/WACC3.61
WACC9.91%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AZO may have some problems paying its short term obligations.
The Current ratio of AZO (0.84) is worse than 84.30% 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.
AZO's Quick ratio of 0.13 is on the low side compared to the rest of the industry. AZO is outperformed by 91.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.64% over the past year.
The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.19%.
AZO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.28% yearly.
EPS 1Y (TTM)8.64%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-0.09%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.13%
3.2 Future
AZO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y3.78%
EPS Next 2Y7.9%
EPS Next 3Y8.96%
EPS Next 5Y9.75%
Revenue Next Year1.66%
Revenue Next 2Y3.76%
Revenue Next 3Y4.77%
Revenue Next 5Y5.65%
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 decreasing.
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
A Price/Earnings ratio of 21.74 indicates a rather expensive valuation of AZO.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.73. AZO is valued slightly cheaper when compared to this.
AZO is valuated rather expensively with a Price/Forward Earnings ratio of 18.67.
66.12% of the companies in the same industry are more expensive than AZO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AZO to the average of the S&P500 Index (22.83), we can say AZO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 18.67 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 64.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.32 | ||
| EV/EBITDA | 14.71 |
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)5.75
PEG (5Y)1.15
EPS Next 2Y7.9%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AUTOZONE INC
NYSE:AZO (12/20/2024, 8:04:00 PM)
After market: 3253.47 0 (0%)3253.47
+38.18 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.64%
Inst Owner Change18.95%
Ins Owners0.32%
Ins Owner Change-2.02%
Market Cap54.69B
Analysts80
Price Target3419.93 (5.12%)
Short Float %1.65%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.79%
Min EPS beat(2)-4.6%
Max EPS beat(2)1.02%
EPS beat(4)3
Avg EPS beat(4)1.93%
Min EPS beat(4)-4.6%
Max EPS beat(4)8.95%
EPS beat(8)7
Avg EPS beat(8)4.51%
EPS beat(12)11
Avg EPS beat(12)8.07%
EPS beat(16)15
Avg EPS beat(16)10.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.56%
Revenue beat(8)3
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)1.42%
Revenue beat(16)10
Avg Revenue beat(16)2.34%
PT rev (1m)0.31%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-5.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 18.67 | ||
| P/S | 2.96 | ||
| P/FCF | 28.32 | ||
| P/OCF | 18.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.71 |
EPS(TTM)149.68
EY4.6%
EPS(NY)174.3
Fwd EY5.36%
FCF(TTM)114.9
FCFY3.53%
OCF(TTM)178.71
OCFY5.49%
SpS1099.96
BVpS-282.55
TBVpS-300.55
PEG (NY)5.75
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.5% | ||
| ROE | N/A | ||
| ROCE | 44.77% | ||
| ROIC | 35.73% | ||
| ROICexc | 37.04% | ||
| ROICexgc | 38.46% | ||
| OM | 20.49% | ||
| PM (TTM) | 14.4% | ||
| GM | 53.09% | ||
| FCFM | 10.45% |
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)39.24%
ROCE(3y)46.72%
ROCE(5y)42.54%
ROICexcg growth 3Y-2.92%
ROICexcg growth 5Y-3.24%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y-2.5%
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.98%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.88 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 195.12% | ||
| Cap/Sales | 5.8% | ||
| Interest Coverage | 10.71 | ||
| Cash Conversion | 69.24% | ||
| Profit Quality | 72.54% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 2.84 |
F-Score6
WACC9.91%
ROIC/WACC3.61
Cap/Depr(3y)169.1%
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)8.64%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-0.09%
EPS Next Y3.78%
EPS Next 2Y7.9%
EPS Next 3Y8.96%
EPS Next 5Y9.75%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.13%
Revenue Next Year1.66%
Revenue Next 2Y3.76%
Revenue Next 3Y4.77%
Revenue Next 5Y5.65%
EBIT growth 1Y9.06%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year13.79%
EBIT Next 3Y8.9%
EBIT Next 5Y6.92%
FCF growth 1Y-9.92%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y2.15%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%