AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3523 USD
+101.83 (+2.98%)
3522 USD
-1 (-0.03%)
AZO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 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.
In the past year AZO had a positive cash flow from operations.
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 (12.53%) is better than 87.70% of its industry peers.
AZO has a better Return On Invested Capital (28.76%) than 95.90% 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 12.24%.
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 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 94.26% 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 95.08% 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 52.15%, AZO belongs to the top of the industry, outperforming 80.33% 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 | 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.
The number of shares outstanding for AZO has been reduced compared to 1 year ago.
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 2.78. 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 has a better Altman-Z score (2.78) than 61.48% of its industry peers.
The Debt to FCF ratio of AZO is 4.65, which is a neutral value as it means it would take AZO, 4.65 years of fcf income to pay off all of its debts.
AZO has a Debt to FCF ratio of 4.65. This is in the better half of the industry: AZO outperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.78 |
ROIC/WACC3.04
WACC9.46%
2.3 Liquidity
AZO has a Current 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 Current ratio of AZO (0.86) is worse than 81.15% of its industry peers.
A Quick Ratio of 0.13 indicates that AZO may have some problems paying its short term obligations.
AZO has a worse Quick ratio (0.13) than 94.26% 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.
Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 3.81% in the last 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 11.89% on average per year.
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 Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
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
A Price/Earnings ratio of 24.57 indicates a rather expensive valuation of AZO.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 67.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AZO to the average of the S&P500 Index (27.25), we can say AZO is valued inline with the index average.
AZO is valuated rather expensively with a Price/Forward Earnings ratio of 19.96.
AZO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 65.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZO to the average of the S&P500 Index (23.98), we can say AZO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 19.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
62.30% of the companies in the same industry are more expensive than AZO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.58 | ||
| EV/EBITDA | 16 |
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)7.72
PEG (5Y)1.64
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3523
+101.83 (+2.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.75%
Inst Owner Change0.04%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap58.59B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts82.42
Price Target4449.26 (26.29%)
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)-5.26%
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)-4.35%
PT rev (3m)-4.06%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-6.39%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 19.96 | ||
| P/S | 3.04 | ||
| P/FCF | 31.58 | ||
| P/OCF | 18.03 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)143.4
EY4.07%
EPS(NY)176.48
Fwd EY5.01%
FCF(TTM)111.56
FCFY3.17%
OCF(TTM)195.41
OCFY5.55%
SpS1159.81
BVpS-194.14
TBVpS-212.34
PEG (NY)7.72
PEG (5Y)1.64
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
WACC9.46%
ROIC/WACC3.04
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 Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
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 24.57 and the Price/Book (PB) ratio is -18.15.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.