AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3573.98 USD
+51.96 (+1.48%)
3574 USD
0.02 (0%)
AZO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. While AZO belongs to the best of the industry regarding profitability, 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.
- In the past year AZO had a positive cash flow from operations.
- AZO had positive earnings in each of the past 5 years.
- AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AZO (12.53%) is better than 87.60% of its industry peers.
- AZO has a Return On Invested Capital of 28.76%. This is amongst the best in the industry. AZO outperforms 95.87% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AZO is significantly above the industry average of 12.37%.
- The last Return On Invested Capital (28.76%) for AZO is well below the 3 year average (34.01%), which needs to be investigated, but indicates that AZO had better years and this may not be a problem.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of AZO (12.78%) is better than 94.21% of its industry peers.
- AZO's Profit Margin has been stable in the last couple of years.
- AZO has a Operating Margin of 18.42%. This is amongst the best in the industry. AZO outperforms 95.04% of its industry peers.
- In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
- AZO has a Gross Margin of 52.15%. This is amongst the best in the industry. AZO outperforms 80.99% of its industry peers.
- AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AZO is creating value.
- AZO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AZO has less shares outstanding
- AZO has a better debt/assets ratio than last year.
2.2 Solvency
- AZO has an Altman-Z score of 2.78. 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's Altman-Z score of 2.78 is fine compared to the rest of the industry. AZO outperforms 60.33% 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 67.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.78 |
ROIC/WACC3.03
WACC9.5%
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 80.99% of its industry peers.
- AZO has a Quick Ratio of 0.86. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of AZO (0.13) is worse than 94.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
- AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.20%.
- Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.01% on average per year.
- The Revenue has been growing slightly by 3.81% in the past year.
- Measured over the past years, AZO shows a quite strong growth in Revenue. The Revenue has been growing by 8.44% on average per year.
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 11.89% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.30% on average over the next years.
EPS Next Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.45%
Revenue Next 2Y7.93%
Revenue Next 3Y7.82%
Revenue Next 5Y7.3%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
4. Valuation
4.1 Price/Earnings Ratio
- AZO is valuated rather expensively with a Price/Earnings ratio of 24.92.
- 68.59% 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 26.94, AZO is valued at the same level.
- AZO is valuated rather expensively with a Price/Forward Earnings ratio of 20.25.
- Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than 66.12% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, AZO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
- AZO's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 62.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 16 |
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)7.83
PEG (5Y)1.66
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% |
3573.98
+51.96 (+1.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-02 2026-03-02
Inst Owners94.75%
Inst Owner Change0.16%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap59.44B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts82.42
Price Target4387.49 (22.76%)
Short Float %1.59%
Short Ratio1.67
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)-5.26%
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)-5.67%
PT rev (3m)-5.39%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-5.02%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 20.25 | ||
| P/S | 3.08 | ||
| P/FCF | 32.04 | ||
| P/OCF | 18.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)143.4
EY4.01%
EPS(NY)176.48
Fwd EY4.94%
FCF(TTM)111.56
FCFY3.12%
OCF(TTM)195.41
OCFY5.47%
SpS1159.81
BVpS-194.14
TBVpS-212.34
PEG (NY)7.83
PEG (5Y)1.66
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.78 |
F-Score6
WACC9.5%
ROIC/WACC3.03
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 5Y11.89%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.45%
Revenue Next 2Y7.93%
Revenue Next 3Y7.82%
Revenue Next 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year17.85%
EBIT Next 3Y11.8%
EBIT Next 5Y8.77%
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 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 24.92 and the Price/Book (PB) ratio is -18.41.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.