AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock - Currency: USD
Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO 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. While showing a medium growth rate, AZO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AZO was profitable.
AZO had a positive operating cash flow in the past year.
Each year in the past 5 years AZO has been profitable.
In the past 5 years AZO always reported a positive cash flow from operatings.
1.2 Ratios
AZO has a better Return On Assets (15.08%) than 89.26% of its industry peers.
With an excellent Return On Invested Capital value of 35.18%, AZO belongs to the best of the industry, outperforming 97.52% 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 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.08% | ||
| ROE | N/A | ||
| ROIC | 35.18% |
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
1.3 Margins
AZO has a Profit Margin of 14.18%. This is amongst the best in the industry. AZO outperforms 95.04% of its industry peers.
In the last couple of years the Profit Margin of AZO has remained more or less at the same level.
AZO's Operating Margin of 20.35% is amongst the best of the industry. AZO outperforms 97.52% of its industry peers.
In the last couple of years the Operating Margin of AZO has grown nicely.
AZO's Gross Margin of 53.13% is amongst the best of the industry. AZO outperforms 82.64% of its industry peers.
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 | 20.35% | ||
| PM (TTM) | 14.18% | ||
| GM | 53.13% |
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.98%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
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.
Compared to 1 year ago, AZO has less shares outstanding
The number of shares outstanding for AZO has been reduced compared to 5 years ago.
AZO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.00 indicates that AZO is not in any danger for bankruptcy at the moment.
The Altman-Z score of AZO (3.00) is better than 71.90% of its industry peers.
AZO has a debt to FCF ratio of 4.74. This is a neutral value as AZO would need 4.74 years to pay back of all of its debts.
AZO has a Debt to FCF ratio of 4.74. This is in the better half of the industry: AZO outperforms 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 3 |
ROIC/WACC3.99
WACC8.82%
2.3 Liquidity
A Current Ratio of 0.83 indicates that AZO may have some problems paying its short term obligations.
With a Current ratio value of 0.83, AZO is not doing good in the industry: 84.30% of the companies in the same industry are doing better.
A Quick Ratio of 0.13 indicates that AZO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.13, AZO is doing worse than 92.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
AZO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.97%.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
The Revenue has been growing slightly by 4.72% in the past year.
Measured over the past years, AZO shows a quite strong growth in Revenue. The Revenue has been growing by 9.28% on average per year.
EPS 1Y (TTM)4.97%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.41%
3.2 Future
AZO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y1.24%
EPS Next 2Y6.79%
EPS Next 3Y8.21%
EPS Next 5Y9.5%
Revenue Next Year1.43%
Revenue Next 2Y3.69%
Revenue Next 3Y4.66%
Revenue Next 5Y5.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.17, the valuation of AZO can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as AZO.
AZO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
AZO is valuated rather expensively with a Price/Forward Earnings ratio of 21.11.
AZO's Price/Forward Earnings is on the same level as the industry average.
AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 21.11 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
AZO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.71 | ||
| EV/EBITDA | 15.88 |
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.
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)19.49
PEG (5Y)1.28
EPS Next 2Y6.79%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3603.47
+36.61 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change-1.72%
Market Cap60.29B
Analysts79.41
Price Target3891.67 (8%)
Short Float %1.74%
Short Ratio2.41
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)-4.32%
Min EPS beat(2)-4.6%
Max EPS beat(2)-4.03%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-4.6%
Max EPS beat(4)8.95%
EPS beat(8)6
Avg EPS beat(8)3.07%
EPS beat(12)10
Avg EPS beat(12)5.91%
EPS beat(16)14
Avg EPS beat(16)9.77%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.56%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)10
Avg Revenue beat(16)2.32%
PT rev (1m)4.78%
PT rev (3m)5.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.35%
EPS NY rev (1m)-1.79%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 21.11 | ||
| P/S | 3.24 | ||
| P/FCF | 31.71 | ||
| P/OCF | 20.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.88 |
EPS(TTM)149.08
EY4.14%
EPS(NY)170.74
Fwd EY4.74%
FCF(TTM)113.65
FCFY3.15%
OCF(TTM)178.46
OCFY4.95%
SpS1110.56
BVpS-279.31
TBVpS-297.4
PEG (NY)19.49
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.08% | ||
| ROE | N/A | ||
| ROCE | 44.09% | ||
| ROIC | 35.18% | ||
| ROICexc | 36.48% | ||
| ROICexgc | 37.86% | ||
| OM | 20.35% | ||
| PM (TTM) | 14.18% | ||
| GM | 53.13% | ||
| FCFM | 10.23% |
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
ROICexc(3y)38.73%
ROICexc(5y)37.47%
ROICexgc(3y)40.44%
ROICexgc(5y)39.24%
ROCE(3y)46.72%
ROCE(5y)42.54%
ROICexcg growth 3Y-2.92%
ROICexcg growth 5Y-3.24%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y-2.5%
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.98%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.74 | ||
| Debt/EBITDA | 2.07 | ||
| Cap/Depr | 192.7% | ||
| Cap/Sales | 5.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.73% | ||
| Profit Quality | 72.19% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 3 |
F-Score7
WACC8.82%
ROIC/WACC3.99
Cap/Depr(3y)169.1%
Cap/Depr(5y)154.99%
Cap/Sales(3y)4.83%
Cap/Sales(5y)4.48%
Profit Quality(3y)87.28%
Profit Quality(5y)105.17%
High Growth Momentum
Growth
EPS 1Y (TTM)4.97%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-2.08%
EPS Next Y1.24%
EPS Next 2Y6.79%
EPS Next 3Y8.21%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.41%
Revenue Next Year1.43%
Revenue Next 2Y3.69%
Revenue Next 3Y4.66%
Revenue Next 5Y5.7%
EBIT growth 1Y5.05%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year12.15%
EBIT Next 3Y8.85%
EBIT Next 5Y7.51%
FCF growth 1Y-25.21%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y-7.47%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%