AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3496.77 USD
-270.19 (-7.17%)
3495.75 USD
-1.02 (-0.03%)
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 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.
In the past 5 years AZO has always been profitable.
AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AZO (12.91%) is better than 88.43% of its industry peers.
With an excellent Return On Invested Capital value of 29.27%, AZO belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AZO is significantly above the industry average of 12.26%.
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
The Profit Margin of AZO (13.19%) is better than 95.04% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
AZO has a Operating Margin of 19.06%. This is amongst the best in the industry. AZO outperforms 95.87% 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 52.62%. This is amongst the best in the industry. AZO outperforms 81.82% 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 2.88 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 2.88. This is in the better half of the industry: AZO outperforms 70.25% of its industry peers.
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.
AZO has a better Debt to FCF ratio (4.92) than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.88 |
ROIC/WACC3.12
WACC9.38%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AZO may have some problems paying its short term obligations.
With a Current ratio value of 0.88, AZO is not doing good in the industry: 80.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
The Quick ratio of AZO (0.14) is worse than 93.39% 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.
Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 2.43% in the last year.
AZO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.44% yearly.
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 11.42% on average per year.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 7.13% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 24.14, which indicates a rather expensive current valuation of AZO.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than 65.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of AZO to the average of the S&P500 Index (26.28), we can say AZO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.48, the valuation of AZO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZO is on the same level as its industry peers.
AZO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 22.48 |
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.
AZO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.49 | ||
| EV/EBITDA | 16.85 |
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 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)1.61
EPS Next 2Y12.53%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3496.77
-270.19 (-7.17%)
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-4.07%
Market Cap58.15B
Revenue(TTM)18.94B
Net Income(TTM)2.50B
Analysts83.13
Price Target4651.44 (33.02%)
Short Float %1.78%
Short Ratio2.28
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)-0.12%
PT rev (3m)10.09%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-12.81%
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)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 22.48 | ||
| P/S | 3.07 | ||
| P/FCF | 32.49 | ||
| P/OCF | 18.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.85 |
EPS(TTM)144.88
EY4.14%
EPS(NY)155.54
Fwd EY4.45%
FCF(TTM)107.64
FCFY3.08%
OCF(TTM)187.45
OCFY5.36%
SpS1138.83
BVpS-205.31
TBVpS-223.51
PEG (NY)3.28
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 | 2.88 |
F-Score6
WACC9.38%
ROIC/WACC3.12
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 Y7.36%
EPS Next 2Y12.53%
EPS Next 3Y12.16%
EPS Next 5Y11.42%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
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 3 / 10 to AUTOZONE INC (AZO). This can be considered as Overvalued.
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 24.14 and the Price/Book (PB) ratio is -17.03.
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.