AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
3718.26 USD
+44.6 (+1.21%)
3718.26 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AZO. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AZO was profitable.
In the past year AZO had a positive cash flow from operations.
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's Return On Assets of 12.91% is amongst the best of the industry. AZO outperforms 87.70% of its industry peers.
The Return On Invested Capital of AZO (29.27%) is better than 95.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 11.67%.
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
The Profit Margin of AZO (13.19%) is better than 94.26% of its industry peers.
In the last couple of years the Profit Margin of AZO has remained more or less at the same level.
With an excellent Operating Margin value of 19.06%, AZO belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
AZO's Operating Margin has been stable in the last couple of years.
AZO's Gross Margin of 52.62% is amongst the best of the industry. AZO outperforms 81.97% of its industry peers.
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.
Compared to 1 year ago, AZO has less shares outstanding
AZO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AZO has been reduced compared to a year ago.
2.2 Solvency
AZO has an Altman-Z score of 2.87. 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.
AZO has a better Altman-Z score (2.87) than 64.75% of its industry peers.
The Debt to FCF ratio of AZO is 4.92, which is a neutral value as it means it would take AZO, 4.92 years of fcf income to pay off 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 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.87 |
ROIC/WACC3.25
WACC9.01%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AZO may have some problems paying its short term obligations.
AZO's Current ratio of 0.88 is on the low side compared to the rest of the industry. AZO is outperformed by 81.15% of its industry peers.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
AZO has a worse Quick ratio (0.14) than 94.26% 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 -3.23% 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 2.43% in the past year.
The Revenue has been growing by 8.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
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 12.12% yearly.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y12.17%
EPS Next 5Y12.12%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.7%
Revenue Next 5Y6.79%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 25.66, AZO can be considered very expensive at the moment.
AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 63.93% of the companies in the same industry.
AZO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
With a Price/Forward Earnings ratio of 23.87, AZO is valued on the expensive side.
AZO's Price/Forward Earnings ratio is in line with the industry average.
AZO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 23.87 |
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 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.61 | ||
| EV/EBITDA | 16.69 |
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.
AZO's earnings are expected to grow with 12.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.41
PEG (5Y)1.71
EPS Next 2Y12.53%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3718.26
+44.6 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change-0.99%
Ins Owners0.25%
Ins Owner Change-3.08%
Market Cap61.95B
Revenue(TTM)18.94B
Net Income(TTM)2.50B
Analysts81.82
Price Target4656.83 (25.24%)
Short Float %1.24%
Short Ratio1.63
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)-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)0.42%
PT rev (3m)10.22%
EPS NQ rev (1m)-2.3%
EPS NQ rev (3m)-12.07%
EPS NY rev (1m)-7.88%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.66 | ||
| Fwd PE | 23.87 | ||
| P/S | 3.27 | ||
| P/FCF | 34.61 | ||
| P/OCF | 19.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.69 |
EPS(TTM)144.88
EY3.9%
EPS(NY)155.78
Fwd EY4.19%
FCF(TTM)107.45
FCFY2.89%
OCF(TTM)187.12
OCFY5.03%
SpS1136.78
BVpS-204.94
TBVpS-223.11
PEG (NY)3.41
PEG (5Y)1.71
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 | 2.87 |
F-Score6
WACC9.01%
ROIC/WACC3.25
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)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y12.17%
EPS Next 5Y12.12%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.7%
Revenue Next 5Y6.79%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year29.4%
EBIT Next 3Y14.6%
EBIT Next 5Y10.84%
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 4 / 10 to AZO.
What is the valuation status for AZO stock?
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 25.66 and the Price/Book (PB) ratio is -18.14.
What is the expected EPS growth for AUTOZONE INC (AZO) stock?
The Earnings per Share (EPS) of AUTOZONE INC (AZO) is expected to grow by 7.52% in the next year.