AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3421.17 USD
+107.18 (+3.23%)
3421.17 USD
0 (0%)
Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO against 122 industry peers in the Specialty Retail industry. While AZO belongs to the best of the industry regarding profitability, 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
In the past year AZO was profitable.
In the past year AZO had a positive cash flow from operations.
In the past 5 years AZO has always been profitable.
AZO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AZO has a Return On Assets of 12.53%. This is amongst the best in the industry. AZO outperforms 87.70% of its industry peers.
With an excellent Return On Invested Capital value of 28.76%, AZO belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
AZO had an Average Return On Invested Capital over the past 3 years of 34.01%. This is significantly above the industry average of 12.24%.
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
AZO has a better Profit Margin (12.78%) than 94.26% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 18.42%, AZO belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Operating Margin of AZO has remained more or less at the same level.
AZO's Gross Margin of 52.15% is amongst the best of the industry. AZO outperforms 80.33% 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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AZO 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
The debt/assets ratio for AZO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.74 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZO has a Altman-Z score (2.74) which is in line with its industry peers.
AZO has a debt to FCF ratio of 4.65. This is a neutral value as AZO would need 4.65 years to pay back of all of its debts.
AZO has a Debt to FCF ratio of 4.65. This is in the better half of the industry: AZO outperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.74 |
ROIC/WACC3.04
WACC9.46%
2.3 Liquidity
A Current Ratio of 0.86 indicates that AZO may have some problems paying its short term obligations.
AZO has a worse Current ratio (0.86) than 81.15% 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 94.26% 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.
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 3.81% 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)-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
The Earnings Per Share is expected to grow by 11.89% on average over the next years. This is quite good.
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 Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
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.
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
Based on the Price/Earnings ratio of 23.86, the valuation of AZO can be described as rather expensive.
69.67% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
AZO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 19.39, which indicates a rather expensive current valuation of AZO.
Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
AZO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 19.39 |
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.
62.30% of the companies in the same industry are more expensive than AZO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.67 | ||
| EV/EBITDA | 15.6 |
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)7.49
PEG (5Y)1.59
EPS Next 2Y10.37%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3421.17
+107.18 (+3.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.75%
Inst Owner Change0.04%
Ins Owners0.23%
Ins Owner Change0.39%
Market Cap56.89B
Revenue(TTM)19.29B
Net Income(TTM)2.46B
Analysts82.42
Price Target4449.26 (30.05%)
Short Float %1.92%
Short Ratio2.12
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)-4.35%
PT rev (3m)-4.06%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-6.39%
EPS NY rev (1m)-3.89%
EPS NY rev (3m)-11.6%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.86 | ||
| Fwd PE | 19.39 | ||
| P/S | 2.95 | ||
| P/FCF | 30.67 | ||
| P/OCF | 17.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.6 |
EPS(TTM)143.4
EY4.19%
EPS(NY)176.48
Fwd EY5.16%
FCF(TTM)111.56
FCFY3.26%
OCF(TTM)195.41
OCFY5.71%
SpS1159.81
BVpS-194.14
TBVpS-212.34
PEG (NY)7.49
PEG (5Y)1.59
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 | 2.74 |
F-Score6
WACC9.46%
ROIC/WACC3.04
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 Y3.18%
EPS Next 2Y10.37%
EPS Next 3Y10.92%
EPS Next 5Y11.89%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year8.41%
Revenue Next 2Y7.89%
Revenue Next 3Y7.77%
Revenue Next 5Y7.3%
EBIT growth 1Y-6.03%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year17.85%
EBIT Next 3Y11.8%
EBIT Next 5Y8.77%
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 23.86 and the Price/Book (PB) ratio is -17.62.
How financially healthy is AUTOZONE INC?
The financial health rating of AUTOZONE INC (AZO) is 4 / 10.