AUTOZONE INC (AZO) Fundamental Analysis & Valuation

NYSE:AZO • US0533321024

Current stock price

3575.69 USD
-2.22 (-0.06%)
Last:

This AZO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. AZO Profitability Analysis

1.1 Basic Checks

  • AZO had positive earnings in the past year.
  • In the past year AZO had a positive cash flow from operations.
  • AZO had positive earnings in each of the past 5 years.
  • Each year in the past 5 years AZO had a positive operating cash flow.
AZO Yearly Net Income VS EBIT VS OCF VS FCFAZO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • AZO's Return On Assets of 11.96% is amongst the best of the industry. AZO outperforms 88.62% of its industry peers.
  • AZO has a better Return On Invested Capital (26.88%) than 95.94% 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 13.24%.
  • The last Return On Invested Capital (26.88%) 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 RankSector Rank
ROA 11.96%
ROE N/A
ROIC 26.88%
ROA(3y)14.74%
ROA(5y)15.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)34.01%
ROIC(5y)34.88%
AZO Yearly ROA, ROE, ROICAZO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.47%, AZO belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
  • AZO's Profit Margin has been stable in the last couple of years.
  • AZO's Operating Margin of 18.08% is amongst the best of the industry. AZO outperforms 95.12% of its industry peers.
  • AZO's Operating Margin has been stable in the last couple of years.
  • AZO's Gross Margin of 51.88% is fine compared to the rest of the industry. AZO outperforms 79.67% of its industry peers.
  • AZO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.08%
PM (TTM) 12.47%
GM 51.88%
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%
AZO Yearly Profit, Operating, Gross MarginsAZO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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4

2. AZO Health Analysis

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.
  • AZO has less shares outstanding than it did 1 year ago.
  • AZO has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AZO has an improved debt to assets ratio.
AZO Yearly Shares OutstandingAZO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
AZO Yearly Total Debt VS Total AssetsAZO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • AZO has an Altman-Z score of 2.68. 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 2.68 is in line compared to the rest of the industry. AZO outperforms 56.10% of its industry peers.
  • The Debt to FCF ratio of AZO is 5.57, which is a neutral value as it means it would take AZO, 5.57 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of AZO (5.57) is better than 63.41% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.57
Altman-Z 2.68
ROIC/WACC3.27
WACC8.21%
AZO Yearly LT Debt VS Equity VS FCFAZO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B

2.3 Liquidity

  • AZO has a Current Ratio of 0.89. 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 Current ratio of 0.89 is on the low side compared to the rest of the industry. AZO is outperformed by 81.30% of its industry peers.
  • A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.14, AZO is not doing good in the industry: 94.31% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.14
AZO Yearly Current Assets VS Current LiabilitesAZO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AZO Growth Analysis

3.1 Past

  • AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.25%.
  • 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.
  • The Revenue has been growing slightly by 5.02% in the past year.
  • Measured over the past years, AZO shows a quite strong growth in Revenue. The Revenue has been growing by 8.44% on average per year.
EPS 1Y (TTM)-4.25%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-2.33%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y3.86%
EPS Next 2Y10.55%
EPS Next 3Y10.7%
EPS Next 5Y11.94%
Revenue Next Year8.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.84%
Revenue Next 5Y7.36%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
AZO Yearly Revenue VS EstimatesAZO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
AZO Yearly EPS VS EstimatesAZO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100 200 300

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3

4. AZO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.05, which means the current valuation is very expensive for AZO.
  • AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 61.79% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, AZO is valued at the same level.
  • The Price/Forward Earnings ratio is 20.20, which indicates a rather expensive current valuation of AZO.
  • Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than 61.79% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.29. AZO is around the same levels.
Industry RankSector Rank
PE 25.05
Fwd PE 20.2
AZO Price Earnings VS Forward Price EarningsAZO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as AZO.
Industry RankSector Rank
P/FCF 36.83
EV/EBITDA 16.13
AZO Per share dataAZO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800 1K

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)6.5
PEG (5Y)1.67
EPS Next 2Y10.55%
EPS Next 3Y10.7%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AZO Dividend Analysis

5.1 Amount

  • AZO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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AZO Fundamentals: All Metrics, Ratios and Statistics

AUTOZONE INC

NYSE:AZO (4/27/2026, 3:46:25 PM)

3575.69

-2.22 (-0.06%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-26
Inst Owners94.68%
Inst Owner Change-0.17%
Ins Owners0.24%
Ins Owner Change0.45%
Market Cap58.93B
Revenue(TTM)19.61B
Net Income(TTM)2.45B
Analysts81.25
Price Target4310.9 (20.56%)
Short Float %1.83%
Short Ratio2.11
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-2.31%
Min EPS beat(2)-5.46%
Max EPS beat(2)0.84%
EPS beat(4)1
Avg EPS beat(4)-3.84%
Min EPS beat(4)-5.67%
Max EPS beat(4)0.84%
EPS beat(8)2
Avg EPS beat(8)-3.34%
EPS beat(12)6
Avg EPS beat(12)-0.5%
EPS beat(16)10
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)-1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-1.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)6
Avg Revenue beat(16)-0.11%
PT rev (1m)-0.45%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
Industry RankSector Rank
PE 25.05
Fwd PE 20.2
P/S 3
P/FCF 36.83
P/OCF 19.39
P/B N/A
P/tB N/A
EV/EBITDA 16.13
EPS(TTM)142.74
EY3.99%
EPS(NY)177.05
Fwd EY4.95%
FCF(TTM)97.08
FCFY2.72%
OCF(TTM)184.43
OCFY5.16%
SpS1189.91
BVpS-176.5
TBVpS-194.87
PEG (NY)6.5
PEG (5Y)1.67
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 11.96%
ROE N/A
ROCE 33.71%
ROIC 26.88%
ROICexc 27.63%
ROICexgc 28.47%
OM 18.08%
PM (TTM) 12.47%
GM 51.88%
FCFM 8.16%
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 Turnover0.96
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.57
Debt/EBITDA 2.13
Cap/Depr 222.85%
Cap/Sales 7.34%
Interest Coverage 250
Cash Conversion 72.52%
Profit Quality 65.43%
Current Ratio 0.89
Quick Ratio 0.14
Altman-Z 2.68
F-Score6
WACC8.21%
ROIC/WACC3.27
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)-4.25%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-2.33%
EPS Next Y3.86%
EPS Next 2Y10.55%
EPS Next 3Y10.7%
EPS Next 5Y11.94%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.84%
Revenue Next 5Y7.36%
EBIT growth 1Y-5.34%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year18.5%
EBIT Next 3Y12.34%
EBIT Next 5Y9.76%
FCF growth 1Y-21.14%
FCF growth 3Y-10.99%
FCF growth 5Y-4.58%
OCF growth 1Y-0.58%
OCF growth 3Y-0.98%
OCF growth 5Y2.76%

AUTOZONE INC / AZO Fundamental Analysis 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 3 / 10 to AUTOZONE INC (AZO). This can be considered as Overvalued.


How profitable is AUTOZONE INC (AZO) stock?

AUTOZONE INC (AZO) has a profitability rating of 8 / 10.


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 3.86% in the next year.