AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3334.44 USD
+16.36 (+0.49%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AZO has a correct valuation and a medium growth rate.
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 (12.91%) than 88.52% of its industry peers.
The Return On Invested Capital of AZO (29.27%) is better than 95.90% 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 12.14%.
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 95.08% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
AZO's Operating Margin of 19.06% is amongst the best of the industry. AZO outperforms 95.90% of its industry peers.
In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
The Gross Margin of AZO (52.62%) is better than 80.33% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZO is creating value.
AZO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AZO has less shares outstanding
AZO has a better debt/assets ratio than last year.
2.2 Solvency
AZO has an Altman-Z score of 2.69. 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.
Looking at the Altman-Z score, with a value of 2.69, AZO is in line with its industry, outperforming 59.02% 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.
AZO has a better Debt to FCF ratio (4.92) than 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.69 |
ROIC/WACC3.09
WACC9.46%
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's Current ratio of 0.88 is on the low side compared to the rest of the industry. AZO is outperformed by 81.15% of its industry peers.
AZO has a Quick 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.
Looking at the Quick ratio, with a value of 0.14, AZO is doing worse than 94.26% of the companies in the same industry.
| 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 -4.20%.
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 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 11.42% 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 Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.42%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
Revenue Next 5Y7.13%
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 23.25 indicates a rather expensive valuation of AZO.
Based on the Price/Earnings ratio, AZO is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.92. AZO is around the same levels.
AZO is valuated rather expensively with a Price/Forward Earnings ratio of 18.89.
Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than 65.57% of the companies in the same industry.
AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 18.89 |
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.
Based on the Price/Free Cash Flow ratio, AZO is valued a bit cheaper than the industry average as 62.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.98 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)7.3
PEG (5Y)1.55
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:AZO (1/8/2026, 10:12:09 AM)
3334.44
+16.36 (+0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.75%
Inst Owner Change0%
Ins Owners0.23%
Ins Owner Change-0.05%
Market Cap55.45B
Revenue(TTM)19.29B
Net Income(TTM)2.50B
Analysts83.13
Price Target4449.26 (33.43%)
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)-5.36%
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)-4.5%
PT rev (3m)-4.06%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 18.89 | ||
| P/S | 2.93 | ||
| P/FCF | 30.98 | ||
| P/OCF | 17.79 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.08 |
EPS(TTM)143.4
EY4.3%
EPS(NY)176.48
Fwd EY5.29%
FCF(TTM)107.64
FCFY3.23%
OCF(TTM)187.45
OCFY5.62%
SpS1138.83
BVpS-205.31
TBVpS-223.51
PEG (NY)7.3
PEG (5Y)1.55
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 | 2.69 |
F-Score6
WACC9.46%
ROIC/WACC3.09
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 5Y11.42%
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 5Y7.13%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year17.85%
EBIT Next 3Y11.8%
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.
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 23.25 and the Price/Book (PB) ratio is -16.24.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.