Logo image of AZO

AUTOZONE INC (AZO) Stock Fundamental Analysis

NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock - Currency: USD

3368.98  -37.68 (-1.11%)

After market: 3368.98 0 (0%)

Fundamental Rating

5

Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO against 120 industry peers in the Specialty Retail industry. AZO scores excellent on profitability, but there are some minor concerns on its financial health. AZO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

8

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.
AZO had positive earnings in each of the past 5 years.
In the past 5 years AZO always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

With an excellent Return On Assets value of 15.08%, AZO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
AZO's Return On Invested Capital of 35.18% is amongst the best of the industry. AZO outperforms 98.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.30%.
Industry RankSector Rank
ROA 15.08%
ROE N/A
ROIC 35.18%
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
AZO Yearly ROA, ROE, ROICAZO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150

1.3 Margins

With an excellent Profit Margin value of 14.18%, AZO belongs to the best of the industry, outperforming 95.73% of the companies in the same industry.
AZO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 20.35%, AZO belongs to the top of the industry, outperforming 99.15% of the companies in the same industry.
In the last couple of years the Operating Margin of AZO has grown nicely.
AZO has a Gross Margin of 53.13%. This is amongst the best in the industry. AZO outperforms 81.20% of its industry peers.
In the last couple of years the Gross Margin of AZO has remained more or less at the same level.
Industry RankSector Rank
OM 20.35%
PM (TTM) 14.18%
GM 53.13%
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%
AZO Yearly Profit, Operating, Gross MarginsAZO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

More info and screens

4

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
AZO has less shares outstanding than it did 5 years ago.
AZO has a worse debt/assets ratio than last year.
AZO Yearly Shares OutstandingAZO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
AZO Yearly Total Debt VS Total AssetsAZO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

AZO has an Altman-Z score of 2.92. 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.
With a decent Altman-Z score value of 2.92, AZO is doing good in the industry, outperforming 64.10% of the companies in the same industry.
AZO has a debt to FCF ratio of 4.74. This is a neutral value as AZO would need 4.74 years to pay back of all of its debts.
AZO's Debt to FCF ratio of 4.74 is fine compared to the rest of the industry. AZO outperforms 63.25% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.74
Altman-Z 2.92
ROIC/WACC3.54
WACC9.95%
AZO Yearly LT Debt VS Equity VS FCFAZO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B

2.3 Liquidity

A Current Ratio of 0.83 indicates that AZO may have some problems paying its short term obligations.
AZO has a Current ratio of 0.83. This is amonst the worse of the industry: AZO underperforms 88.03% of its industry peers.
A Quick Ratio of 0.13 indicates that AZO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.13, AZO is doing worse than 93.16% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.13
AZO Yearly Current Assets VS Current LiabilitesAZO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

More info and screens

5

3. Growth

3.1 Past

AZO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.64%, which is quite good.
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 5.19%.
AZO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.28% yearly.
EPS 1Y (TTM)8.64%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-0.09%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.13%

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 9.77% on average per year.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y3.08%
EPS Next 2Y7.84%
EPS Next 3Y8.72%
EPS Next 5Y9.77%
Revenue Next Year1.63%
Revenue Next 2Y3.82%
Revenue Next 3Y4.76%
Revenue Next 5Y5.69%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AZO Yearly Revenue VS EstimatesAZO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
AZO Yearly EPS VS EstimatesAZO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100 200 300

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.51, which indicates a rather expensive current valuation of AZO.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 64.10% of the companies listed in the same industry.
AZO is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.35, AZO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZO to the average of the S&P500 Index (22.68), we can say AZO is valued inline with the index average.
Industry RankSector Rank
PE 22.51
Fwd PE 19.35
AZO Price Earnings VS Forward Price EarningsAZO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 62.39% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.73
EV/EBITDA 15.16
AZO Per share dataAZO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 500 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)7.3
PEG (5Y)1.19
EPS Next 2Y7.84%
EPS Next 3Y8.72%

More info and screens

0

5. Dividend

5.1 Amount

AZO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

AUTOZONE INC

NYSE:AZO (2/21/2025, 8:04:00 PM)

After market: 3368.98 0 (0%)

3368.98

-37.68 (-1.11%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-10 2024-12-10/bmo
Earnings (Next)03-04 2025-03-04/bmo
Inst Owners94.41%
Inst Owner Change-12.53%
Ins Owners0.3%
Ins Owner Change-1.64%
Market Cap56.53B
Analysts80
Price Target3714.08 (10.24%)
Short Float %1.53%
Short Ratio2.16
Dividend
Industry RankSector 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)-4.32%
Min EPS beat(2)-4.6%
Max EPS beat(2)-4.03%
EPS beat(4)2
Avg EPS beat(4)0.33%
Min EPS beat(4)-4.6%
Max EPS beat(4)8.95%
EPS beat(8)6
Avg EPS beat(8)3.07%
EPS beat(12)10
Avg EPS beat(12)5.91%
EPS beat(16)14
Avg EPS beat(16)9.77%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.56%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)10
Avg Revenue beat(16)2.32%
PT rev (1m)0.72%
PT rev (3m)8.75%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)-7.02%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 22.51
Fwd PE 19.35
P/S 3.04
P/FCF 29.73
P/OCF 18.93
P/B N/A
P/tB N/A
EV/EBITDA 15.16
EPS(TTM)149.68
EY4.44%
EPS(NY)174.1
Fwd EY5.17%
FCF(TTM)113.31
FCFY3.36%
OCF(TTM)177.93
OCFY5.28%
SpS1107.25
BVpS-278.48
TBVpS-296.52
PEG (NY)7.3
PEG (5Y)1.19
Profitability
Industry RankSector Rank
ROA 15.08%
ROE N/A
ROCE 44.09%
ROIC 35.18%
ROICexc 36.48%
ROICexgc 37.86%
OM 20.35%
PM (TTM) 14.18%
GM 53.13%
FCFM 10.23%
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
ROICexc(3y)38.73%
ROICexc(5y)37.47%
ROICexgc(3y)40.44%
ROICexgc(5y)39.24%
ROCE(3y)46.72%
ROCE(5y)42.54%
ROICexcg growth 3Y-2.92%
ROICexcg growth 5Y-3.24%
ROICexc growth 3Y-2.46%
ROICexc growth 5Y-2.5%
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%
F-Score7
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.74
Debt/EBITDA 2.07
Cap/Depr 192.7%
Cap/Sales 5.84%
Interest Coverage 250
Cash Conversion 68.73%
Profit Quality 72.19%
Current Ratio 0.83
Quick Ratio 0.13
Altman-Z 2.92
F-Score7
WACC9.95%
ROIC/WACC3.54
Cap/Depr(3y)169.1%
Cap/Depr(5y)154.99%
Cap/Sales(3y)4.83%
Cap/Sales(5y)4.48%
Profit Quality(3y)87.28%
Profit Quality(5y)105.17%
High Growth Momentum
Growth
EPS 1Y (TTM)8.64%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-0.09%
EPS Next Y3.08%
EPS Next 2Y7.84%
EPS Next 3Y8.72%
EPS Next 5Y9.77%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.13%
Revenue Next Year1.63%
Revenue Next 2Y3.82%
Revenue Next 3Y4.76%
Revenue Next 5Y5.69%
EBIT growth 1Y5.05%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year14.05%
EBIT Next 3Y9.09%
EBIT Next 5Y7.7%
FCF growth 1Y-25.21%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y-7.47%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%