AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3391.5 USD
-7.35 (-0.22%)
3391.5 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AZO. AZO was compared to 123 industry peers in the Specialty Retail industry. AZO has an excellent profitability rating, 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.
Each year in the past 5 years AZO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AZO (12.91%) is better than 88.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.27%, AZO belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
AZO had an Average Return On Invested Capital over the past 3 years of 34.01%. This is significantly above the industry average of 12.14%.
The 3 year average ROIC (34.01%) for AZO is well above the current ROIC(29.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | N/A | ||
| ROIC | 29.27% |
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
AZO's Profit Margin of 13.19% is amongst the best of the industry. AZO outperforms 95.12% 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's Operating Margin of 19.06% is amongst the best of the industry. AZO outperforms 95.94% of its industry peers.
AZO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.62%, AZO is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 13.19% | ||
| GM | 52.62% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZO is creating value.
The number of shares outstanding for AZO has been reduced compared to 1 year ago.
The number of shares outstanding for AZO has been reduced compared to 5 years ago.
The debt/assets ratio for AZO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AZO (2.72) is better than 60.98% of its industry peers.
AZO has a debt to FCF ratio of 4.92. This is a neutral value as AZO would need 4.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.92, AZO is in the better half of the industry, outperforming 67.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.72 |
ROIC/WACC3.12
WACC9.39%
2.3 Liquidity
AZO has a Current Ratio of 0.88. 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 worse Current ratio (0.88) than 80.49% of its industry peers.
AZO has a Quick Ratio of 0.88. 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 worse Quick ratio (0.14) than 93.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The earnings per share for AZO have decreased by -4.20% in the last year.
The Earnings Per Share has been growing by 15.01% 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 3.81%.
The Revenue has been growing by 8.44% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 7.13% on average per year.
EPS Next Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.42%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
Revenue Next 5Y7.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
AZO is valuated rather expensively with a Price/Earnings ratio of 23.65.
AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 67.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of AZO to the average of the S&P500 Index (26.51), we can say AZO is valued inline with the index average.
A Price/Forward Earnings ratio of 19.22 indicates a rather expensive valuation of AZO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 62.60% of the companies listed in the same industry.
AZO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.51 | ||
| EV/EBITDA | 15.37 |
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)7.43
PEG (5Y)1.58
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3391.5
-7.35 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.35%
Inst Owner Change-6.96%
Ins Owners0.23%
Ins Owner Change-0.02%
Market Cap56.40B
Revenue(TTM)19.29B
Net Income(TTM)2.50B
Analysts83.13
Price Target4449.26 (31.19%)
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)-5.36%
Min EPS beat(2)-5.67%
Max EPS beat(2)-5.06%
EPS beat(4)0
Avg EPS beat(4)-4.63%
Min EPS beat(4)-5.67%
Max EPS beat(4)-3.76%
EPS beat(8)3
Avg EPS beat(8)-1.35%
EPS beat(12)7
Avg EPS beat(12)1.46%
EPS beat(16)11
Avg EPS beat(16)4.9%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-1%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.89%
PT rev (1m)-4.5%
PT rev (3m)2.76%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-12.32%
EPS NY rev (1m)-4.03%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 19.22 | ||
| P/S | 2.98 | ||
| P/FCF | 31.51 | ||
| P/OCF | 18.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.37 |
EPS(TTM)143.4
EY4.23%
EPS(NY)176.48
Fwd EY5.2%
FCF(TTM)107.64
FCFY3.17%
OCF(TTM)187.45
OCFY5.53%
SpS1138.83
BVpS-205.31
TBVpS-223.51
PEG (NY)7.43
PEG (5Y)1.58
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | N/A | ||
| ROCE | 36.7% | ||
| ROIC | 29.27% | ||
| ROICexc | 30.1% | ||
| ROICexgc | 31.08% | ||
| OM | 19.06% | ||
| PM (TTM) | 13.19% | ||
| GM | 52.62% | ||
| FCFM | 9.45% |
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 | 4.92 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 216.45% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 73.81% | ||
| Profit Quality | 71.65% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 2.72 |
F-Score6
WACC9.39%
ROIC/WACC3.12
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 5Y11.42%
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 5Y7.13%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year17.85%
EBIT Next 3Y11.8%
EBIT Next 5Y9.9%
FCF growth 1Y-7.32%
FCF growth 3Y-10.99%
FCF growth 5Y-4.58%
OCF growth 1Y3.77%
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 23.65 and the Price/Book (PB) ratio is -16.52.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.