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AUTOZONE INC (AZO) Stock Fundamental Analysis

NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock

3297.72  +69.32 (+2.15%)

After market: 3297.72 0 (0%)

Fundamental Rating

5

Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 119 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.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year AZO was profitable.
AZO had a positive operating cash flow in the past year.
In the past 5 years AZO has always been profitable.
AZO had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

AZO has a better Return On Assets (15.08%) than 92.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 35.18%, AZO belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.38%.
Industry RankSector Rank
ROA 15.08%
ROE N/A
ROIC 35.18%
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
AZO Yearly ROA, ROE, ROICAZO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150

1.3 Margins

Looking at the Profit Margin, with a value of 14.18%, AZO belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
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 (20.35%) than 99.14% of its industry peers.
AZO's Operating Margin has improved in the last couple of years.
AZO has a Gross Margin of 53.13%. This is amongst the best in the industry. AZO outperforms 81.90% 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 RankSector Rank
OM 20.35%
PM (TTM) 14.18%
GM 53.13%
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%
AZO Yearly Profit, Operating, Gross MarginsAZO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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4

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.
AZO has less shares outstanding than it did 1 year ago.
AZO has less shares outstanding than it did 5 years ago.
AZO has a worse debt/assets ratio than last year.
AZO Yearly Shares OutstandingAZO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
AZO Yearly Total Debt VS Total AssetsAZO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 2.84 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.84, AZO is doing good in the industry, outperforming 63.79% of the companies in the same industry.
The Debt to FCF ratio of AZO is 4.74, which is a neutral value as it means it would take AZO, 4.74 years of fcf income to pay off all of its debts.
AZO has a better Debt to FCF ratio (4.74) than 62.93% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.74
Altman-Z 2.84
ROIC/WACC3.56
WACC9.89%
AZO Yearly LT Debt VS Equity VS FCFAZO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B

2.3 Liquidity

AZO has a Current Ratio of 0.83. 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 Current ratio of 0.83. This is amonst the worse of the industry: AZO underperforms 87.93% of its industry peers.
AZO has a Quick Ratio of 0.83. 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 93.10% of its industry peers.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.13
AZO Yearly Current Assets VS Current LiabilitesAZO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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5

3. Growth

3.1 Past

AZO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.64%, which is quite good.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
The Revenue has been growing slightly by 5.19% in the past year.
Measured over the past years, AZO shows a quite strong growth in Revenue. The Revenue has been growing by 9.28% on average per year.
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

Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.77% on average per year.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y3.78%
EPS Next 2Y7.9%
EPS Next 3Y8.96%
EPS Next 5Y9.77%
Revenue Next Year1.61%
Revenue Next 2Y3.75%
Revenue Next 3Y4.7%
Revenue Next 5Y5.69%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AZO Yearly Revenue VS EstimatesAZO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
AZO Yearly EPS VS EstimatesAZO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100 200 300

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.03, which indicates a rather expensive current valuation of AZO.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than 64.66% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, AZO is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.92, which indicates a rather expensive current valuation of AZO.
AZO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 64.66% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, AZO is valued a bit cheaper.
Industry RankSector Rank
PE 22.03
Fwd PE 18.92
AZO Price Earnings VS Forward Price EarningsAZO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
AZO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AZO is cheaper than 66.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.1
EV/EBITDA 14.48
AZO Per share dataAZO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 500 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.
AZO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.83
PEG (5Y)1.17
EPS Next 2Y7.9%
EPS Next 3Y8.96%

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0

5. Dividend

5.1 Amount

AZO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AUTOZONE INC

NYSE:AZO (1/21/2025, 8:04:00 PM)

After market: 3297.72 0 (0%)

3297.72

+69.32 (+2.15%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-10 2024-12-10/bmo
Earnings (Next)N/A N/A
Inst Owners96.64%
Inst Owner Change-5.1%
Ins Owners0.32%
Ins Owner Change-1.64%
Market Cap55.34B
Analysts79.41
Price Target3681.1 (11.63%)
Short Float %2.17%
Short Ratio2.65
Dividend
Industry RankSector 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)-4.38%
Min EPS beat(2)-4.6%
Max EPS beat(2)-4.16%
EPS beat(4)2
Avg EPS beat(4)0.3%
Min EPS beat(4)-4.6%
Max EPS beat(4)8.95%
EPS beat(8)6
Avg EPS beat(8)3.05%
EPS beat(12)10
Avg EPS beat(12)5.9%
EPS beat(16)14
Avg EPS beat(16)9.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.56%
Revenue beat(8)2
Avg Revenue beat(8)-0.7%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)10
Avg Revenue beat(16)2.31%
PT rev (1m)7.64%
PT rev (3m)10.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.6%
Valuation
Industry RankSector Rank
PE 22.03
Fwd PE 18.92
P/S 2.98
P/FCF 29.1
P/OCF 18.53
P/B N/A
P/tB N/A
EV/EBITDA 14.48
EPS(TTM)149.68
EY4.54%
EPS(NY)174.3
Fwd EY5.29%
FCF(TTM)113.31
FCFY3.44%
OCF(TTM)177.93
OCFY5.4%
SpS1107.25
BVpS-278.48
TBVpS-296.52
PEG (NY)5.83
PEG (5Y)1.17
Profitability
Industry RankSector Rank
ROA 15.08%
ROE N/A
ROCE 44.09%
ROIC 35.18%
ROICexc 36.48%
ROICexgc 37.86%
OM 20.35%
PM (TTM) 14.18%
GM 53.13%
FCFM 10.23%
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-Score7
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.74
Debt/EBITDA 2.07
Cap/Depr 192.7%
Cap/Sales 5.84%
Interest Coverage 250
Cash Conversion 68.73%
Profit Quality 72.19%
Current Ratio 0.83
Quick Ratio 0.13
Altman-Z 2.84
F-Score7
WACC9.89%
ROIC/WACC3.56
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 5Y9.77%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.13%
Revenue Next Year1.61%
Revenue Next 2Y3.75%
Revenue Next 3Y4.7%
Revenue Next 5Y5.69%
EBIT growth 1Y5.05%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year13.97%
EBIT Next 3Y9.03%
EBIT Next 5Y7.7%
FCF growth 1Y-25.21%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y-7.47%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%