AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO • US0533321024
3784.42 USD
-44.85 (-1.17%)
At close: Feb 24, 2026
3784.42 USD
0 (0%)
After Hours: 2/24/2026, 7:03:11 PM
We assign a fundamental rating of 5 out of 10 to AZO. AZO was compared to 123 industry peers in the Specialty Retail industry. While AZO has a great profitability rating, 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.
- AZO had a positive operating cash flow in the past year.
- AZO had positive earnings in each of the past 5 years.
- AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AZO (12.53%) is better than 87.80% of its industry peers.
- AZO has a better Return On Invested Capital (28.76%) than 95.94% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AZO is significantly above the industry average of 11.89%.
- 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
- The Profit Margin of AZO (12.78%) is better than 94.31% of its industry peers.
- AZO's Profit Margin has been stable in the last couple of years.
- The Operating Margin of AZO (18.42%) is better than 95.94% of its industry peers.
- In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
- AZO has a better Gross Margin (52.15%) than 80.49% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZO is creating value.
- AZO has less shares outstanding than it did 1 year ago.
- 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 2.91. 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.
- AZO has a Altman-Z score of 2.91. This is in the better half of the industry: AZO outperforms 66.67% of its industry peers.
- The Debt to FCF ratio of AZO is 4.65, which is a neutral value as it means it would take AZO, 4.65 years of fcf income to pay off all of its debts.
- AZO has a better Debt to FCF ratio (4.65) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.91 |
ROIC/WACC3.09
WACC9.3%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that AZO may have some problems paying its short term obligations.
- AZO has a Current ratio of 0.86. This is amonst the worse of the industry: AZO underperforms 80.49% of its industry peers.
- A Quick Ratio of 0.13 indicates that AZO may have some problems paying its short term obligations.
- AZO has a worse Quick ratio (0.13) than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
- The earnings per share for AZO have decreased by -4.20% in the last year.
- Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.01% on average per year.
- Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 3.81% 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)-4.2%
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
- AZO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
- The Revenue is expected to grow by 7.30% on average over the next years.
EPS Next Y3.23%
EPS Next 2Y10.48%
EPS Next 3Y11.06%
EPS Next 5Y11.89%
Revenue Next Year8.47%
Revenue Next 2Y7.97%
Revenue Next 3Y7.9%
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
- The Price/Earnings ratio is 26.39, which means the current valuation is very expensive for AZO.
- Based on the Price/Earnings ratio, AZO is valued a bit cheaper than 65.04% of the companies in the same industry.
- AZO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 21.40, the valuation of AZO can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than 61.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, AZO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.39 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
- AZO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.8 | ||
| EV/EBITDA | 17.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)8.18
PEG (5Y)1.76
EPS Next 2Y10.48%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
- AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3784.42
-44.85 (-1.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-03 2026-03-03
Inst Owners94.75%
Inst Owner Change0.1%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap62.71B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts81.82
Price Target4345.13 (14.82%)
Short Float %2.08%
Short Ratio1.93
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)-0.97%
PT rev (3m)-6.73%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-3.99%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.39 | ||
| Fwd PE | 21.4 | ||
| P/S | 3.25 | ||
| P/FCF | 33.8 | ||
| P/OCF | 19.3 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.17 |
EPS(TTM)143.4
EY3.79%
EPS(NY)176.82
Fwd EY4.67%
FCF(TTM)111.97
FCFY2.96%
OCF(TTM)196.12
OCFY5.18%
SpS1164.01
BVpS-194.85
TBVpS-213.11
PEG (NY)8.18
PEG (5Y)1.76
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 | 2.91 |
F-Score6
WACC9.3%
ROIC/WACC3.09
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 Y3.23%
EPS Next 2Y10.48%
EPS Next 3Y11.06%
EPS Next 5Y11.89%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.47%
Revenue Next 2Y7.97%
Revenue Next 3Y7.9%
Revenue Next 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year18.17%
EBIT Next 3Y12.29%
EBIT Next 5Y9.76%
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 26.39 and the Price/Book (PB) ratio is -19.42.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.