AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3465.45 USD
-7.21 (-0.21%)
3465 USD
-0.45 (-0.01%)
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 122 industry peers in the Specialty Retail industry. AZO scores excellent on profitability, but there are some minor concerns on its financial health. AZO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- AZO had positive earnings in the past year.
- 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
- With an excellent Return On Assets value of 12.53%, AZO belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
- AZO's Return On Invested Capital of 28.76% is amongst the best of the industry. AZO outperforms 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 12.24%.
- The last Return On Invested Capital (28.76%) 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 | 12.53% | ||
| 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 12.78%, AZO belongs to the top of the industry, outperforming 94.26% 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.
- With an excellent Operating Margin value of 18.42%, AZO belongs to the best of the industry, outperforming 95.08% 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.
- With an excellent Gross Margin value of 52.15%, AZO belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
- AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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
- Compared to 5 years ago, AZO has less shares outstanding
- The debt/assets ratio for AZO has been reduced compared to a year ago.
2.2 Solvency
- AZO has an Altman-Z score of 2.76. 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.
- AZO has a Altman-Z score (2.76) which is comparable to the rest of the 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 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.76 |
ROIC/WACC3.05
WACC9.44%
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.
- With a Current ratio value of 0.86, AZO is not doing good in the industry: 81.15% 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.
- With a Quick ratio value of 0.13, AZO is not doing good in the industry: 94.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.13 |
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%.
- AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
- AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.81%.
- 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)-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
- The Earnings Per Share is expected to grow by 11.89% on average over the next years. This is quite good.
- Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 7.30% on average per year.
EPS Next Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
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.
- 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
- With a Price/Earnings ratio of 24.17, AZO is valued on the expensive side.
- 68.85% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.54. AZO is around the same levels.
- AZO is valuated rather expensively with a Price/Forward Earnings ratio of 19.64.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 65.57% of the companies listed in the same industry.
- AZO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 19.64 |
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 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.06 | ||
| EV/EBITDA | 15.78 |
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.
PEG (NY)7.59
PEG (5Y)1.61
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
- No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3465.45
-7.21 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-02 2026-03-02
Inst Owners94.75%
Inst Owner Change0.04%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap57.63B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts82.42
Price Target4449.26 (28.39%)
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)-5.26%
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)-4.35%
PT rev (3m)-4.06%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-6.39%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 19.64 | ||
| P/S | 2.99 | ||
| P/FCF | 31.06 | ||
| P/OCF | 17.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.78 |
EPS(TTM)143.4
EY4.14%
EPS(NY)176.48
Fwd EY5.09%
FCF(TTM)111.56
FCFY3.22%
OCF(TTM)195.41
OCFY5.64%
SpS1159.81
BVpS-194.14
TBVpS-212.34
PEG (NY)7.59
PEG (5Y)1.61
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.76 |
F-Score6
WACC9.44%
ROIC/WACC3.05
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 5Y11.89%
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 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year17.85%
EBIT Next 3Y11.8%
EBIT Next 5Y8.77%
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 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 24.17 and the Price/Book (PB) ratio is -17.85.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.