AUTOZONE INC (AZO)
US0533321024 - Common Stock
We assign a fundamental rating of 5 out of 10 to AZO. AZO was compared to 123 industry peers in the Specialty Retail industry. AZO scores excellent on profitability, but there are 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
In the past year AZO was profitable.
AZO had a positive operating cash flow in the past year.
AZO had positive earnings in each of the past 5 years.
Of the past 5 years AZO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AZO (15.34%) is better than 92.56% of its industry peers.
AZO has a Return On Invested Capital of 37.45%. This is amongst the best in the industry. AZO outperforms 98.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | N/A | ||
| ROIC | 37.45% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AZO (14.60%) is better than 98.35% 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 has a better Operating Margin (20.66%) than 99.17% of its industry peers.
In the last couple of years the Operating Margin of AZO has grown nicely.
AZO has a Gross Margin of 53.18%. This is amongst the best in the industry. AZO outperforms 81.82% of its industry peers.
AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.66% | ||
| PM (TTM) | 14.6% | ||
| GM | 53.18% |
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
AZO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for AZO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AZO has an Altman-Z score of 2.62. 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 of 2.62. This is comparable to the rest of the industry: AZO outperforms 58.68% of its industry peers.
AZO has a debt to FCF ratio of 4.71. This is a neutral value as AZO would need 4.71 years to pay back of all of its debts.
AZO's Debt to FCF ratio of 4.71 is fine compared to the rest of the industry. AZO outperforms 60.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.71 | ||
| Altman-Z | 2.62 |
ROIC/WACC4.06
WACC9.23%
2.3 Liquidity
AZO has a Current Ratio of 0.79. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AZO (0.79) is worse than 87.60% of its industry peers.
AZO has a Quick Ratio of 0.79. 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 Quick ratio of 0.12. This is amonst the worse of the industry: AZO underperforms 93.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.84% over the past year.
AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.86% yearly.
AZO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.92%.
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)12.84%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%11.02%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%9.05%
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 11.38% yearly.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 4.97% on average per year.
EPS Next Y4.96%
EPS Next 2Y8.79%
EPS Next 3Y9.26%
EPS Next 5Y11.38%
Revenue Next Year1.91%
Revenue Next 2Y3.94%
Revenue Next 3Y4.83%
Revenue Next 5Y4.97%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AZO is valuated rather expensively with a Price/Earnings ratio of 20.50.
AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 66.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of AZO to the average of the S&P500 Index (28.96), we can say AZO is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.53, which indicates a rather expensive current valuation of AZO.
61.16% of the companies in the same industry are more expensive than AZO, based on the Price/Forward Earnings ratio.
AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 19.53 |
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 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.16 | ||
| EV/EBITDA | 14.26 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.13
PEG (5Y)1.09
EPS Next 2Y8.79%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AUTOZONE INC
NYSE:AZO (11/21/2024, 10:25:02 PM)
After market: 3068.69 0 (0%)3068.69
+19.11 (+0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap51.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 19.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.13
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.66% | ||
| PM (TTM) | 14.6% | ||
| GM | 53.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.84%
EPS 3Y16.07%
EPS 5Y
EPS Q2Q%
EPS Next Y4.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.92%
Revenue growth 3Y8.12%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y