AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3456.02 USD
-7.59 (-0.22%)
3456.2 USD
+0.18 (+0.01%)
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 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.
Each year in the past 5 years AZO has been profitable.
AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AZO's Return On Assets of 12.91% is amongst the best of the industry. AZO outperforms 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.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.17%.
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
Looking at the Profit Margin, with a value of 13.19%, AZO belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
AZO's Profit Margin has been stable in the last couple of years.
AZO's Operating Margin of 19.06% is amongst the best of the industry. AZO outperforms 95.94% of its industry peers.
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 52.62%, AZO is in the better half of the industry, outperforming 79.67% 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 | 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
AZO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
AZO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.75 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZO has a Altman-Z score of 2.75. This is in the better half of the industry: AZO outperforms 60.98% 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.
With a decent Debt to FCF ratio value of 4.92, AZO is doing good in 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 | 2.75 |
ROIC/WACC3.13
WACC9.35%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AZO may have some problems paying its short term obligations.
AZO has a worse Current ratio (0.88) than 81.30% 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 Quick ratio of 0.14. This is amonst the worse of the industry: AZO underperforms 94.31% 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.
The Revenue has been growing slightly by 3.81% 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)-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
Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.13% yearly.
EPS Next Y7.36%
EPS Next 2Y12.53%
EPS Next 3Y12.16%
EPS Next 5Y11.42%
Revenue Next Year7.98%
Revenue Next 2Y7.39%
Revenue Next 3Y7.77%
Revenue Next 5Y7.13%
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.
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
The Price/Earnings ratio is 24.10, which indicates a rather expensive current valuation of AZO.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than 67.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. AZO is around the same levels.
Based on the Price/Forward Earnings ratio of 18.84, the valuation of AZO can be described as rather expensive.
65.04% of the companies in the same industry are more expensive than AZO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.03. AZO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 18.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
AZO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AZO is cheaper than 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.11 | ||
| EV/EBITDA | 15.63 |
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.
A more expensive valuation may be justified as AZO's earnings are expected to grow with 12.16% in the coming years.
PEG (NY)3.27
PEG (5Y)1.61
EPS Next 2Y12.53%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3456.02
-7.59 (-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-0.13%
Market Cap57.47B
Revenue(TTM)19.29B
Net Income(TTM)2.50B
Analysts83.13
Price TargetN/A
Short Float %1.82%
Short Ratio2.14
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)-0.12%
PT rev (3m)7.43%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-12.32%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-7.74%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 18.84 | ||
| P/S | 3.03 | ||
| P/FCF | 32.11 | ||
| P/OCF | 18.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.63 |
EPS(TTM)143.4
EY4.15%
EPS(NY)183.47
Fwd EY5.31%
FCF(TTM)107.64
FCFY3.11%
OCF(TTM)187.45
OCFY5.42%
SpS1138.83
BVpS-205.31
TBVpS-223.51
PEG (NY)3.27
PEG (5Y)1.61
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 | 2.75 |
F-Score6
WACC9.35%
ROIC/WACC3.13
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 Y7.36%
EPS Next 2Y12.53%
EPS Next 3Y12.16%
EPS Next 5Y11.42%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year7.98%
Revenue Next 2Y7.39%
Revenue Next 3Y7.77%
Revenue Next 5Y7.13%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year20.01%
EBIT Next 3Y12.98%
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.
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 24.1 and the Price/Book (PB) ratio is -16.83.
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 7.36% in the next year.