AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
3808.55 USD
-19.34 (-0.51%)
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 valied quite expensively at the moment, while it does show 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.
AZO had positive earnings in each of the past 5 years.
Each year in the past 5 years AZO had a positive operating cash flow.
1.2 Ratios
AZO has a Return On Assets of 12.91%. This is amongst the best in the industry. AZO outperforms 87.70% of its industry peers.
AZO's Return On Invested Capital of 29.27% is amongst the best of the industry. AZO outperforms 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 11.78%.
The last Return On Invested Capital (29.27%) 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 | 12.91% | ||
| 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
AZO has a better Profit Margin (13.19%) 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.
Looking at the Operating Margin, with a value of 19.06%, AZO belongs to the top of the industry, outperforming 95.90% 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.
AZO has a Gross Margin of 52.62%. This is amongst the best in the industry. AZO outperforms 81.15% 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
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.
Compared to 5 years ago, AZO has less shares outstanding
Compared to 1 year ago, AZO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.91 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, AZO is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
AZO has a debt to FCF ratio of 4.92. This is a neutral value as AZO would need 4.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.92, AZO is doing good in the industry, outperforming 66.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.91 |
ROIC/WACC3.24
WACC9.04%
2.3 Liquidity
AZO has a Current Ratio of 0.88. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
AZO has a worse Current ratio (0.88) than 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 Quick ratio of 0.14. This is amonst the worse of the industry: AZO underperforms 94.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.23%.
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.
AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.43%.
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)-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
Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.12% on average per year.
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
Based on the Price/Earnings ratio of 26.29, the valuation of AZO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AZO.
AZO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.47.
The Price/Forward Earnings ratio is 24.45, which indicates a rather expensive current valuation of AZO.
AZO's Price/Forward Earnings is on the same level as the industry average.
AZO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.45 | ||
| EV/EBITDA | 17.04 |
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.
A more expensive valuation may be justified as AZO's earnings are expected to grow with 12.17% in the coming years.
PEG (NY)3.49
PEG (5Y)1.75
EPS Next 2Y12.53%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AZO (11/19/2025, 2:57:50 PM)
3808.55
-19.34 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change-5.65%
Ins Owners0.25%
Ins Owner Change-11.91%
Market Cap63.45B
Revenue(TTM)18.94B
Net Income(TTM)2.50B
Analysts81.82
Price Target4656.83 (22.27%)
Short Float %1.62%
Short Ratio1.98
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)-0.83%
EPS NQ rev (3m)-12.07%
EPS NY rev (1m)-7.88%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 24.45 | ||
| P/S | 3.35 | ||
| P/FCF | 35.45 | ||
| P/OCF | 20.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.04 |
EPS(TTM)144.88
EY3.8%
EPS(NY)155.78
Fwd EY4.09%
FCF(TTM)107.45
FCFY2.82%
OCF(TTM)187.12
OCFY4.91%
SpS1136.78
BVpS-204.94
TBVpS-223.11
PEG (NY)3.49
PEG (5Y)1.75
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 | 2.91 |
F-Score6
WACC9.04%
ROIC/WACC3.24
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 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 26.29 and the Price/Book (PB) ratio is -18.58.
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.