AUTOZONE INC (AZO) Fundamental Analysis & Valuation

NYSE:AZO • US0533321024

Current stock price

3451.12 USD
-37.76 (-1.08%)
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.
  • In the past 5 years AZO has always been profitable.
  • In the past 5 years AZO always reported a positive cash flow from operatings.
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

  • The Return On Assets of AZO (12.53%) is better than 88.71% of its industry peers.
  • AZO has a Return On Invested Capital of 28.76%. This is amongst the best in the industry. AZO outperforms 95.97% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 13.55%.
  • 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 RankSector 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%
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

  • AZO has a Profit Margin of 12.78%. This is amongst the best in the industry. AZO outperforms 94.35% of its industry peers.
  • AZO's Profit Margin has been stable in the last couple of years.
  • With an excellent Operating Margin value of 18.42%, AZO belongs to the best of the industry, outperforming 95.97% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 52.15%, AZO belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
  • AZO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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

  • 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.
  • 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

  • An Altman-Z score of 2.76 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • AZO has a better Altman-Z score (2.76) than 64.52% of its industry peers.
  • AZO has a debt to FCF ratio of 4.65. This is a neutral value as AZO would need 4.65 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.65, AZO is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.65
Altman-Z 2.76
ROIC/WACC2.99
WACC9.61%
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

  • A Current Ratio of 0.86 indicates that AZO may have some problems paying its short term obligations.
  • AZO has a worse Current ratio (0.86) than 80.65% of its industry peers.
  • A Quick Ratio of 0.13 indicates that AZO may have some problems paying 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 91.94% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.13
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

  • The earnings per share for AZO have decreased by -4.25% in the last year.
  • The Earnings Per Share has been growing by 15.01% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 5.02% in the past year.
  • AZO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.44% yearly.
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

  • 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.
  • Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 7.30% on average per year.
EPS Next Y3.21%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.47%
Revenue Next 2Y7.97%
Revenue Next 3Y7.87%
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.
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

  • With a Price/Earnings ratio of 24.18, AZO is valued on the expensive side.
  • 62.90% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.96, AZO is valued at the same level.
  • A Price/Forward Earnings ratio of 19.55 indicates a rather expensive valuation of AZO.
  • 60.48% of the companies in the same industry are more expensive than AZO, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of AZO to the average of the S&P500 Index (24.04), we can say AZO is valued inline with the index average.
Industry RankSector Rank
PE 24.18
Fwd PE 19.55
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 is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as AZO.
Industry RankSector Rank
P/FCF 30.82
EV/EBITDA 15.82
AZO Per share dataAZO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 -200 400 600 800 1K

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AZO does not grow enough to justify the current Price/Earnings ratio.
  • AZO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.53
PEG (5Y)1.61
EPS Next 2Y10.37%
EPS Next 3Y10.92%

More info and screens

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

0

5. AZO Dividend Analysis

5.1 Amount

  • No dividends for AZO!.
Industry RankSector Rank
Dividend Yield 0%

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AZO Fundamentals: All Metrics, Ratios and Statistics

AUTOZONE INC

NYSE:AZO (3/17/2026, 11:44:57 AM)

3451.12

-37.76 (-1.08%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-25
Inst Owners94.16%
Inst Owner Change0.04%
Ins Owners0.24%
Ins Owner Change0.39%
Market Cap57.19B
Revenue(TTM)19.61B
Net Income(TTM)2.46B
Analysts80.61
Price Target4330.5 (25.48%)
Short Float %1.81%
Short Ratio1.83
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)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)-0.34%
PT rev (3m)-6.9%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 24.18
Fwd PE 19.55
P/S 2.96
P/FCF 30.82
P/OCF 17.6
P/B N/A
P/tB N/A
EV/EBITDA 15.82
EPS(TTM)142.74
EY4.14%
EPS(NY)176.49
Fwd EY5.11%
FCF(TTM)111.97
FCFY3.24%
OCF(TTM)196.12
OCFY5.68%
SpS1164.01
BVpS-194.85
TBVpS-213.11
PEG (NY)7.53
PEG (5Y)1.61
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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
WACC9.61%
ROIC/WACC2.99
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 Y3.21%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.47%
Revenue Next 2Y7.97%
Revenue Next 3Y7.87%
Revenue Next 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year18.47%
EBIT Next 3Y12.37%
EBIT Next 5Y9.76%
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 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.


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 24.18 and the Price/Book (PB) ratio is -17.71.


How financially healthy is AUTOZONE INC?

The financial health rating of AUTOZONE INC (AZO) is 4 / 10.