AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
3801.77 USD
-26.12 (-0.68%)
AZO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. AZO has an excellent profitability rating, but there are some minor concerns on its financial health. AZO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AZO had positive earnings in the past year.
In the past year AZO had a positive cash flow from operations.
In the past 5 years AZO has always been profitable.
In the past 5 years AZO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AZO (12.91%) is better than 87.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.27%, AZO belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 11.78%.
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 Profit Margin of 13.19%. This is amongst the best in the industry. AZO outperforms 94.26% 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 Operating Margin of 19.06%. This is amongst the best in 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 81.15% 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
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.
AZO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AZO has been reduced compared to a year ago.
2.2 Solvency
AZO has an Altman-Z score of 2.91. 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 2.91, AZO is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
The Debt to FCF ratio of AZO is 4.92, which is a neutral value as it means it would take AZO, 4.92 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AZO (4.92) is better than 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.91 |
ROIC/WACC3.24
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AZO may have some problems paying 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.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
AZO has a worse Quick ratio (0.14) than 94.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The earnings per share for AZO have decreased by -3.23% in the last year.
AZO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
The Revenue has been growing slightly by 2.43% in the past year.
The Revenue has been growing by 8.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
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 12.12% yearly.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y12.17%
EPS Next 5Y12.12%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.7%
Revenue Next 5Y6.79%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.24, AZO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 61.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.46, AZO is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.40, the valuation of AZO can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AZO.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, AZO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 24.4 |
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.
AZO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.38 | ||
| EV/EBITDA | 17.12 |
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.
AZO's earnings are expected to grow with 12.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.49
PEG (5Y)1.75
EPS Next 2Y12.53%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AZO (11/19/2025, 2:57:50 PM)
3801.77
-26.12 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change-5.65%
Ins Owners0.25%
Ins Owner Change-11.91%
Market Cap63.34B
Revenue(TTM)18.94B
Net Income(TTM)2.50B
Analysts81.82
Price Target4656.83 (22.49%)
Short Float %1.62%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.42%
PT rev (3m)10.22%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-12.07%
EPS NY rev (1m)-7.88%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 24.4 | ||
| P/S | 3.34 | ||
| P/FCF | 35.38 | ||
| P/OCF | 20.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.12 |
EPS(TTM)144.88
EY3.81%
EPS(NY)155.78
Fwd EY4.1%
FCF(TTM)107.45
FCFY2.83%
OCF(TTM)187.12
OCFY4.92%
SpS1136.78
BVpS-204.94
TBVpS-223.11
PEG (NY)3.49
PEG (5Y)1.75
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 | 2.91 |
F-Score6
WACC9.04%
ROIC/WACC3.24
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)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
EPS Next Y7.52%
EPS Next 2Y12.53%
EPS Next 3Y12.17%
EPS Next 5Y12.12%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%0.6%
Revenue Next Year7.9%
Revenue Next 2Y7.32%
Revenue Next 3Y7.7%
Revenue Next 5Y6.79%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year29.4%
EBIT Next 3Y14.6%
EBIT Next 5Y10.84%
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.
What is the valuation status for AZO stock?
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 26.24 and the Price/Book (PB) ratio is -18.55.
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 7.52% in the next year.