AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3472.66 USD
-33.09 (-0.94%)
3472.66 USD
0 (0%)
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 122 industry peers in the Specialty Retail industry. While AZO has a great profitability rating, there are some minor concerns on its financial health. AZO has a decent growth rate and is not valued too expensively.
1. Profitability
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.
- AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AZO has a better Return On Assets (12.53%) than 87.70% of its industry peers.
- AZO has a better Return On Invested Capital (28.76%) than 95.90% of its industry peers.
- AZO had an Average Return On Invested Capital over the past 3 years of 34.01%. This is significantly above the industry average of 12.24%.
- The 3 year average ROIC (34.01%) for AZO is well above the current ROIC(28.76%). The reason for the recent decline needs to be investigated.
| 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
- The Profit Margin of AZO (12.78%) is better than 94.26% of its industry peers.
- AZO's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 18.42%, AZO belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
- AZO's Operating Margin has been stable in the last couple of years.
- The Gross Margin of AZO (52.15%) is better than 80.33% of its industry peers.
- In the last couple of years the Gross Margin of AZO has remained more or less at the same level.
| 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
- AZO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, AZO has less shares outstanding
- Compared to 5 years ago, AZO has less shares outstanding
- AZO has a better debt/assets ratio than last year.
2.2 Solvency
- AZO has an Altman-Z score of 2.76. 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.
- With a Altman-Z score value of 2.76, AZO perfoms like the industry average, outperforming 59.84% of the companies in the same industry.
- The Debt to FCF ratio of AZO is 4.65, which is a neutral value as it means it would take AZO, 4.65 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.65, AZO is doing good in the industry, outperforming 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.76 |
ROIC/WACC3.04
WACC9.47%
2.3 Liquidity
- AZO has a Current 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 Current ratio, with a value of 0.86, AZO is doing worse than 81.15% of the companies in the same industry.
- 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.
- With a Quick ratio value of 0.13, AZO is not doing good in the industry: 94.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
- AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.20%.
- AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
- Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 3.81% in the last 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)-4.2%
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
- AZO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
- The Revenue is expected to grow by 7.30% on average over the next years.
EPS Next Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
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
- AZO is valuated rather expensively with a Price/Earnings ratio of 24.22.
- Based on the Price/Earnings ratio, AZO is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.33. AZO is around the same levels.
- Based on the Price/Forward Earnings ratio of 19.68, the valuation of AZO can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than 65.57% of the companies in the same industry.
- AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
- AZO's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.13 | ||
| EV/EBITDA | 15.8 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AZO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.6
PEG (5Y)1.61
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
- No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3472.66
-33.09 (-0.94%)
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 Change0.04%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap57.75B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts82.42
Price Target4449.26 (28.12%)
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)-4.35%
PT rev (3m)-4.06%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-6.39%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 19.68 | ||
| P/S | 2.99 | ||
| P/FCF | 31.13 | ||
| P/OCF | 17.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.8 |
EPS(TTM)143.4
EY4.13%
EPS(NY)176.48
Fwd EY5.08%
FCF(TTM)111.56
FCFY3.21%
OCF(TTM)195.41
OCFY5.63%
SpS1159.81
BVpS-194.14
TBVpS-212.34
PEG (NY)7.6
PEG (5Y)1.61
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 | 2.76 |
F-Score6
WACC9.47%
ROIC/WACC3.04
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 Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
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 24.22 and the Price/Book (PB) ratio is -17.89.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.