AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock - Currency: USD
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 121 industry peers in the Specialty Retail industry. AZO has an excellent profitability rating, but there are some minor concerns on its financial health. AZO has a correct valuation and a medium 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.
AZO had positive earnings in each of the past 5 years.
In the past 5 years AZO always reported a positive cash flow from operatings.
1.2 Ratios
AZO has a better Return On Assets (14.39%) than 87.60% of its industry peers.
AZO's Return On Invested Capital of 33.77% is amongst the best of the industry. AZO outperforms 97.52% of its industry peers.
AZO had an Average Return On Invested Capital over the past 3 years of 37.29%. This is significantly above the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.39% | ||
| ROE | N/A | ||
| ROIC | 33.77% |
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
Looking at the Profit Margin, with a value of 13.96%, AZO belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
AZO's Profit Margin has been stable in the last couple of years.
AZO has a better Operating Margin (20.06%) than 98.35% of its industry peers.
In the last couple of years the Operating Margin of AZO has grown nicely.
With an excellent Gross Margin value of 53.13%, AZO belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
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 | 20.06% | ||
| PM (TTM) | 13.96% | ||
| GM | 53.13% |
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
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 worse debt/assets ratio than last year.
2.2 Solvency
AZO has an Altman-Z score of 2.85. 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 decent Altman-Z score value of 2.85, AZO is doing good in the industry, outperforming 65.29% of the companies in the same industry.
AZO has a debt to FCF ratio of 4.50. This is a neutral value as AZO would need 4.50 years to pay back of all of its debts.
AZO has a Debt to FCF ratio of 4.50. This is in the better half of the industry: AZO outperforms 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.85 |
ROIC/WACC3.67
WACC9.21%
2.3 Liquidity
AZO has a Current 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 Current ratio of 0.84. This is amonst the worse of the industry: AZO underperforms 84.30% of its industry peers.
A Quick Ratio of 0.13 indicates that AZO may have some problems paying its short term obligations.
With a Quick ratio value of 0.13, AZO is not doing good in the industry: 93.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
AZO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.19%.
The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.15% 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)2.19%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-3.62%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
3.2 Future
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y-0.62%
EPS Next 2Y6.26%
EPS Next 3Y8%
EPS Next 5Y9.09%
Revenue Next Year2.14%
Revenue Next 2Y4.4%
Revenue Next 3Y5.13%
Revenue Next 5Y5.75%
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
Based on the Price/Earnings ratio of 25.08, the valuation of AZO can be described as expensive.
AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 61.98% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. AZO is around the same levels.
A Price/Forward Earnings ratio of 21.92 indicates a rather expensive valuation of AZO.
AZO's Price/Forward Earnings ratio is in line with the industry average.
AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 21.92 |
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.
Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than 62.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.79 | ||
| EV/EBITDA | 16.46 |
4.3 Compensation for Growth
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y6.26%
EPS Next 3Y8%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3705.64
-22.84 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.1%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change-3.04%
Market Cap62.00B
Analysts81.82
Price Target4210.7 (13.63%)
Short Float %1.33%
Short Ratio1.59
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)-3.9%
Min EPS beat(2)-4.03%
Max EPS beat(2)-3.76%
EPS beat(4)1
Avg EPS beat(4)-2.85%
Min EPS beat(4)-4.6%
Max EPS beat(4)1.02%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)3.59%
EPS beat(16)13
Avg EPS beat(16)8.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-1.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.23%
Revenue beat(12)5
Avg Revenue beat(12)0.06%
Revenue beat(16)9
Avg Revenue beat(16)1.94%
PT rev (1m)0.97%
PT rev (3m)8.2%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 21.92 | ||
| P/S | 3.32 | ||
| P/FCF | 30.79 | ||
| P/OCF | 19.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.46 |
EPS(TTM)147.75
EY3.99%
EPS(NY)169.03
Fwd EY4.56%
FCF(TTM)120.36
FCFY3.25%
OCF(TTM)187.41
OCFY5.06%
SpS1116.11
BVpS-266.45
TBVpS-284.54
PEG (NY)N/A
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.39% | ||
| ROE | N/A | ||
| ROCE | 42.32% | ||
| ROIC | 33.77% | ||
| ROICexc | 34.96% | ||
| ROICexgc | 36.24% | ||
| OM | 20.06% | ||
| PM (TTM) | 13.96% | ||
| GM | 53.13% | ||
| FCFM | 10.78% |
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-Score7
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 194.84% | ||
| Cap/Sales | 6.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.57% | ||
| Profit Quality | 77.25% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 2.85 |
F-Score7
WACC9.21%
ROIC/WACC3.67
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)2.19%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-3.62%
EPS Next Y-0.62%
EPS Next 2Y6.26%
EPS Next 3Y8%
EPS Next 5Y9.09%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
Revenue Next Year2.14%
Revenue Next 2Y4.4%
Revenue Next 3Y5.13%
Revenue Next 5Y5.75%
EBIT growth 1Y1.96%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year12.3%
EBIT Next 3Y9.02%
EBIT Next 5Y7.61%
FCF growth 1Y-19.32%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y-2.61%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%