AUTOZONE INC (AZO) Fundamental Analysis & Valuation

NYSE:AZO • US0533321024

Current stock price

3386.14 USD
+40.3 (+1.2%)
At close:
3386.14 USD
0 (0%)
After Hours:

This AZO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. AZO Profitability Analysis

1.1 Basic Checks

  • In the past year AZO was profitable.
  • In the past year AZO had a positive cash flow from operations.
  • AZO had positive earnings in each of the past 5 years.
  • In the past 5 years AZO always reported a positive cash flow from operatings.
AZO Yearly Net Income VS EBIT VS OCF VS FCFAZO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • AZO has a Return On Assets of 12.53%. This is amongst the best in the industry. AZO outperforms 89.43% of its industry peers.
  • AZO has a Return On Invested Capital of 28.76%. This is amongst the best in the industry. AZO outperforms 96.75% of its industry peers.
  • AZO had an Average Return On Invested Capital over the past 3 years of 34.01%. This is significantly above the industry average of 13.21%.
  • 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 RankSector 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%
AZO Yearly ROA, ROE, ROICAZO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.78%, AZO belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
  • 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 18.42% is amongst the best of the industry. AZO outperforms 95.94% of its industry peers.
  • AZO's Operating Margin has been stable in the last couple of years.
  • AZO has a Gross Margin of 52.15%. This is amongst the best in the industry. AZO outperforms 80.49% of its industry peers.
  • AZO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
AZO Yearly Profit, Operating, Gross MarginsAZO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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4

2. AZO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 better debt/assets ratio than last year.
AZO Yearly Shares OutstandingAZO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M 25M
AZO Yearly Total Debt VS Total AssetsAZO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • AZO has an Altman-Z score of 2.71. 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.
  • With a decent Altman-Z score value of 2.71, AZO is doing good in the industry, outperforming 64.23% of the companies in the same industry.
  • AZO has a debt to FCF ratio of 4.65. This is a neutral value as AZO would need 4.65 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.65, AZO is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.65
Altman-Z 2.71
ROIC/WACC3.51
WACC8.2%
AZO Yearly LT Debt VS Equity VS FCFAZO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B

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.
  • AZO has a Current ratio of 0.86. This is amonst the worse of the industry: AZO underperforms 80.49% of its industry peers.
  • A Quick Ratio of 0.13 indicates that AZO may have some problems paying its short term obligations.
  • The Quick ratio of AZO (0.13) is worse than 92.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.13
AZO Yearly Current Assets VS Current LiabilitesAZO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AZO Growth Analysis

3.1 Past

  • AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.25%.
  • 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.
  • The Revenue has been growing slightly by 5.02% in the past year.
  • 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)-4.25%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-2.33%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%

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 11.89% yearly.
  • AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.30% yearly.
EPS Next Y3.21%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.81%
Revenue Next 5Y7.3%

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.
AZO Yearly Revenue VS EstimatesAZO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
AZO Yearly EPS VS EstimatesAZO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100 200 300

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4

4. AZO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.72, the valuation of AZO can be described as rather expensive.
  • Based on the Price/Earnings ratio, AZO is valued a bit cheaper than 62.60% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of AZO to the average of the S&P500 Index (25.61), we can say AZO is valued inline with the index average.
  • The Price/Forward Earnings ratio is 19.19, which indicates a rather expensive current valuation of AZO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 60.98% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, AZO is valued at the same level.
Industry RankSector Rank
PE 23.72
Fwd PE 19.19
AZO Price Earnings VS Forward Price EarningsAZO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than 60.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.15
EV/EBITDA 15.37
AZO Per share dataAZO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 -200 400 600 800 1K

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)7.39
PEG (5Y)1.58
EPS Next 2Y10.37%
EPS Next 3Y10.92%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AZO Dividend Analysis

5.1 Amount

  • No dividends for AZO!.
Industry RankSector Rank
Dividend Yield 0%

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AZO Fundamentals: All Metrics, Ratios and Statistics

AUTOZONE INC

NYSE:AZO (3/25/2026, 10:11:12 PM)

After market: 3386.14 0 (0%)

3386.14

+40.3 (+1.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-25
Inst Owners94.16%
Inst Owner Change0.04%
Ins Owners0.24%
Ins Owner Change0.39%
Market Cap55.94B
Revenue(TTM)19.61B
Net Income(TTM)2.46B
Analysts80.61
Price Target4330.5 (27.89%)
Short Float %1.81%
Short Ratio1.83
Dividend
Industry RankSector 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)-0.34%
PT rev (3m)-6.9%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-3.77%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 23.72
Fwd PE 19.19
P/S 2.9
P/FCF 30.15
P/OCF 17.21
P/B N/A
P/tB N/A
EV/EBITDA 15.37
EPS(TTM)142.74
EY4.22%
EPS(NY)176.49
Fwd EY5.21%
FCF(TTM)112.31
FCFY3.32%
OCF(TTM)196.71
OCFY5.81%
SpS1167.54
BVpS-195.44
TBVpS-213.76
PEG (NY)7.39
PEG (5Y)1.58
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 2.71
F-Score6
WACC8.2%
ROIC/WACC3.51
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)-4.25%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-2.33%
EPS Next Y3.21%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.81%
Revenue Next 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year18.47%
EBIT Next 3Y12.37%
EBIT Next 5Y9.76%
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 Fundamental Analysis 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 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 23.72 and the Price/Book (PB) ratio is -17.33.


How financially healthy is AUTOZONE INC?

The financial health rating of AUTOZONE INC (AZO) is 4 / 10.