AUTOZONE INC (AZO) Fundamental Analysis & Valuation

NYSE:AZO • US0533321024

Current stock price

3577.91 USD
-19.29 (-0.54%)
At close:
3577.91 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

  • AZO had positive earnings in the past year.
  • In the past year AZO had a positive cash flow from operations.
  • Each year in the past 5 years AZO has been profitable.
  • Each year in the past 5 years AZO had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 11.96%, AZO belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
  • AZO's Return On Invested Capital of 26.88% is amongst the best of the industry. AZO outperforms 95.94% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 13.57%.
  • The 3 year average ROIC (34.01%) for AZO is well above the current ROIC(26.88%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 11.96%
ROE N/A
ROIC 26.88%
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

  • The Profit Margin of AZO (12.47%) is better than 95.12% of its industry peers.
  • 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 18.08%, AZO belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
  • AZO's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 51.88%, AZO belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
  • AZO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.08%
PM (TTM) 12.47%
GM 51.88%
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

  • 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.
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

  • An Altman-Z score of 2.69 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 2.69. This is comparable to the rest of the industry: AZO outperforms 59.35% of its industry peers.
  • The Debt to FCF ratio of AZO is 5.57, which is a neutral value as it means it would take AZO, 5.57 years of fcf income to pay off all of its debts.
  • AZO has a Debt to FCF ratio of 5.57. This is in the better half of the industry: AZO outperforms 65.04% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.57
Altman-Z 2.69
ROIC/WACC3.27
WACC8.21%
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 0.89. 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 0.89. This is in the lower half of the industry: AZO underperforms 78.86% of its industry peers.
  • 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 91.87% of its industry peers.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.14
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%.
  • AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
  • Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 5.02% 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)-4.25%
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

  • Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.89% on average per year.
  • Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 7.30% on average per year.
EPS Next Y3.86%
EPS Next 2Y10.55%
EPS Next 3Y10.7%
EPS Next 5Y11.89%
Revenue Next Year8.27%
Revenue Next 2Y7.99%
Revenue Next 3Y7.84%
Revenue Next 5Y7.3%

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.
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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3

4. AZO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.07, AZO can be considered very expensive at the moment.
  • 62.60% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, AZO is valued at the same level.
  • The Price/Forward Earnings ratio is 20.21, which indicates a rather expensive current valuation of AZO.
  • AZO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 64.23% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, AZO is valued at the same level.
Industry RankSector Rank
PE 25.07
Fwd PE 20.21
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZO is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as AZO.
Industry RankSector Rank
P/FCF 36.86
EV/EBITDA 16.2
AZO Per share dataAZO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800 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)6.5
PEG (5Y)1.67
EPS Next 2Y10.55%
EPS Next 3Y10.7%

More info and screens

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

0

5. AZO Dividend Analysis

5.1 Amount

  • AZO does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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AZO Fundamentals: All Metrics, Ratios and Statistics

AUTOZONE INC

NYSE:AZO (4/24/2026, 8:22:25 PM)

After market: 3577.91 0 (0%)

3577.91

-19.29 (-0.54%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-26
Inst Owners94.68%
Inst Owner Change-0.03%
Ins Owners0.24%
Ins Owner Change0.45%
Market Cap58.96B
Revenue(TTM)19.61B
Net Income(TTM)2.45B
Analysts81.25
Price Target4310.9 (20.49%)
Short Float %1.83%
Short Ratio2.11
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)1
Avg EPS beat(2)-2.31%
Min EPS beat(2)-5.46%
Max EPS beat(2)0.84%
EPS beat(4)1
Avg EPS beat(4)-3.84%
Min EPS beat(4)-5.67%
Max EPS beat(4)0.84%
EPS beat(8)2
Avg EPS beat(8)-3.34%
EPS beat(12)6
Avg EPS beat(12)-0.5%
EPS beat(16)10
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)-1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-1.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)6
Avg Revenue beat(16)-0.11%
PT rev (1m)-0.45%
PT rev (3m)-1.75%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 25.07
Fwd PE 20.21
P/S 3.01
P/FCF 36.86
P/OCF 19.4
P/B N/A
P/tB N/A
EV/EBITDA 16.2
EPS(TTM)142.74
EY3.99%
EPS(NY)177.05
Fwd EY4.95%
FCF(TTM)97.08
FCFY2.71%
OCF(TTM)184.43
OCFY5.15%
SpS1189.91
BVpS-176.5
TBVpS-194.87
PEG (NY)6.5
PEG (5Y)1.67
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 11.96%
ROE N/A
ROCE 33.71%
ROIC 26.88%
ROICexc 27.63%
ROICexgc 28.47%
OM 18.08%
PM (TTM) 12.47%
GM 51.88%
FCFM 8.16%
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 Turnover0.96
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.57
Debt/EBITDA 2.13
Cap/Depr 222.85%
Cap/Sales 7.34%
Interest Coverage 250
Cash Conversion 72.52%
Profit Quality 65.43%
Current Ratio 0.89
Quick Ratio 0.14
Altman-Z 2.69
F-Score6
WACC8.21%
ROIC/WACC3.27
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 Y3.86%
EPS Next 2Y10.55%
EPS Next 3Y10.7%
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 3Y7.84%
Revenue Next 5Y7.3%
EBIT growth 1Y-5.34%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year18.5%
EBIT Next 3Y12.34%
EBIT Next 5Y9.76%
FCF growth 1Y-21.14%
FCF growth 3Y-10.99%
FCF growth 5Y-4.58%
OCF growth 1Y-0.58%
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.


How profitable is AUTOZONE INC (AZO) stock?

AUTOZONE INC (AZO) has a profitability rating of 8 / 10.


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 3.86% in the next year.