AUTOZONE INC (AZO)
US0533321024 - Common Stock
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 126 industry peers in the Specialty Retail industry. While AZO has a great profitability rating, there are quite some concerns on its financial health. AZO has a correct valuation and a medium growth rate.
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.
AZO had positive earnings in each of the past 5 years.
Each year in the past 5 years AZO had a positive operating cash flow.
1.2 Ratios
AZO has a Return On Assets of 15.68%. This is amongst the best in the industry. AZO outperforms 92.06% of its industry peers.
AZO has a Return On Invested Capital of 36.69%. This is amongst the best in the industry. AZO outperforms 98.41% of its industry peers.
AZO had an Average Return On Invested Capital over the past 3 years of 36.30%. This is significantly above the industry average of 13.99%.
The last Return On Invested Capital (36.69%) for AZO is above the 3 year average (36.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.68% | ||
| ROE | N/A | ||
| ROIC | 36.69% |
ROA(3y)15.56%
ROA(5y)15.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)36.3%
ROIC(5y)34.69%
1.3 Margins
The Profit Margin of AZO (14.70%) is better than 96.83% of its industry peers.
AZO's Profit Margin has improved in the last couple of years.
AZO's Operating Margin of 20.60% is amongst the best of the industry. AZO outperforms 98.41% of its industry peers.
AZO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 52.94%, AZO belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.6% | ||
| PM (TTM) | 14.7% | ||
| GM | 52.94% |
OM growth 3Y0.16%
OM growth 5Y4.28%
PM growth 3Y1.82%
PM growth 5Y3.96%
GM growth 3Y-1.03%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
Compared to 1 year ago, AZO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.62 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZO has a Altman-Z score (2.62) which is comparable to the rest of the industry.
AZO has a debt to FCF ratio of 4.25. This is a neutral value as AZO would need 4.25 years to pay back of all of its debts.
AZO has a Debt to FCF ratio (4.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.62 |
ROIC/WACC4.18
WACC8.78%
2.3 Liquidity
AZO has a Current Ratio of 0.82. 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 (0.82) is worse than 92.06% of its industry peers.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
AZO's Quick ratio of 0.14 is on the low side compared to the rest of the industry. AZO is outperformed by 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.76% over the past year.
Measured over the past years, AZO shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.34% on average per year.
The Revenue has been growing slightly by 5.57% in the past year.
AZO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.24% yearly.
EPS 1Y (TTM)16.76%
EPS 3Y22.59%
EPS 5Y21.34%
EPS growth Q2Q17.25%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y11.39%
Revenue growth 5Y9.24%
Revenue growth Q2Q4.56%
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 12.11% on average per year.
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 Y16.59%
EPS Next 2Y12.82%
EPS Next 3Y12.45%
EPS Next 5Y12.11%
Revenue Next Year7.44%
Revenue Next 2Y5.73%
Revenue Next 3Y5.8%
Revenue Next 5Y4.97%
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.
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 21.12.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 61.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.02. AZO is around the same levels.
The Price/Forward Earnings ratio is 17.76, 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 65.87% of the companies are valued more expensively.
AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
AZO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.57 | ||
| EV/EBITDA | 14.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AZO may justify a higher PE ratio.
A more expensive valuation may be justified as AZO's earnings are expected to grow with 12.45% in the coming years.
PEG (NY)1.27
PEG (5Y)0.99
EPS Next 2Y12.82%
EPS Next 3Y12.45%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AUTOZONE INC
NYSE:AZO (4/29/2024, 7:04:00 PM)
After market: 2998.78 0 (0%)2998.78
+52.8 (+1.79%)
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 Cap51.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 17.76 | ||
| 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)1.27
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.68% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.6% | ||
| PM (TTM) | 14.7% | ||
| GM | 52.94% | ||
| 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 Turnover1.07
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 | 0.82 | ||
| Quick Ratio | 0.14 | ||
| 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)
Growth
EPS 1Y (TTM)16.76%
EPS 3Y22.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.57%
Revenue growth 3Y11.39%
Revenue growth 5Y
Revenue growth 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
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OCF growth 5Y