AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock - Currency: USD
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AZO was profitable.
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
AZO has a Return On Assets of 14.39%. This is amongst the best in the industry. AZO outperforms 87.70% of its industry peers.
The Return On Invested Capital of AZO (33.77%) is better than 97.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.39% | ||
| ROE | N/A | ||
| ROIC | 33.77% |
ROA(3y)15.74%
ROA(5y)14.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.29%
ROIC(5y)33.95%
1.3 Margins
AZO's Profit Margin of 13.96% is amongst the best of the industry. AZO outperforms 94.26% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
AZO's Operating Margin of 20.06% is amongst the best of the industry. AZO outperforms 98.36% of its industry peers.
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 81.97% of its industry peers.
AZO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.06% | ||
| PM (TTM) | 13.96% | ||
| GM | 53.13% |
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.99%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
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.
AZO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AZO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.87 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AZO has a better Altman-Z score (2.87) than 65.57% of its industry peers.
AZO has a debt to FCF ratio of 4.50. This is a neutral value as AZO would need 4.50 years to pay back of all of its debts.
The Debt to FCF ratio of AZO (4.50) is better than 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.87 |
ROIC/WACC4.05
WACC8.34%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AZO may have some problems paying its short term obligations.
AZO has a worse Current ratio (0.84) than 84.43% 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 Quick ratio of 0.13. This is amonst the worse of the industry: AZO underperforms 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.19% over the past year.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
Looking at the last year, AZO shows a small growth in Revenue. The Revenue has grown by 5.15% in the last year.
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)2.19%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-3.62%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
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 9.09% yearly.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y-0.66%
EPS Next 2Y6.16%
EPS Next 3Y7.98%
EPS Next 5Y9.09%
Revenue Next Year2.25%
Revenue Next 2Y4.37%
Revenue Next 3Y5.09%
Revenue Next 5Y5.75%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.12, which means the current valuation is very expensive for AZO.
AZO's Price/Earnings ratio is a bit cheaper when compared to the industry. AZO is cheaper than 61.48% 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 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.87, AZO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as AZO.
When comparing the Price/Forward Earnings ratio of AZO to the average of the S&P500 Index (36.21), we can say AZO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 22.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 61.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.06 | ||
| EV/EBITDA | 16.62 |
4.3 Compensation for Growth
AZO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y6.16%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3858.86
+90.48 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.1%
Inst Owner Change-2.52%
Ins Owners0.3%
Ins Owner Change-3.04%
Market Cap64.56B
Analysts81.82
Price Target4225.13 (9.49%)
Short Float %1.35%
Short Ratio1.59
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)-3.9%
Min EPS beat(2)-4.03%
Max EPS beat(2)-3.76%
EPS beat(4)1
Avg EPS beat(4)-2.85%
Min EPS beat(4)-4.6%
Max EPS beat(4)1.02%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)3.59%
EPS beat(16)13
Avg EPS beat(16)8.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-1.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.23%
Revenue beat(12)5
Avg Revenue beat(12)0.06%
Revenue beat(16)9
Avg Revenue beat(16)1.94%
PT rev (1m)0.34%
PT rev (3m)8.25%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.12 | ||
| Fwd PE | 22.87 | ||
| P/S | 3.46 | ||
| P/FCF | 32.06 | ||
| P/OCF | 20.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.62 |
EPS(TTM)147.75
EY3.83%
EPS(NY)168.71
Fwd EY4.37%
FCF(TTM)120.36
FCFY3.12%
OCF(TTM)187.41
OCFY4.86%
SpS1116.11
BVpS-266.45
TBVpS-284.54
PEG (NY)N/A
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.39% | ||
| ROE | N/A | ||
| ROCE | 42.32% | ||
| ROIC | 33.77% | ||
| ROICexc | 34.96% | ||
| ROICexgc | 36.24% | ||
| OM | 20.06% | ||
| PM (TTM) | 13.96% | ||
| GM | 53.13% | ||
| FCFM | 10.78% |
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)39.23%
ROCE(3y)46.72%
ROCE(5y)42.54%
ROICexcg growth 3Y-2.92%
ROICexcg growth 5Y-3.24%
ROICexc growth 3Y-2.45%
ROICexc growth 5Y-2.5%
OM growth 3Y0.11%
OM growth 5Y1.87%
PM growth 3Y-0.99%
PM growth 5Y1.1%
GM growth 3Y0.21%
GM growth 5Y-0.21%
F-Score7
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 194.84% | ||
| Cap/Sales | 6.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.57% | ||
| Profit Quality | 77.25% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 2.87 |
F-Score7
WACC8.34%
ROIC/WACC4.05
Cap/Depr(3y)169.09%
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)2.19%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-3.62%
EPS Next Y-0.66%
EPS Next 2Y6.16%
EPS Next 3Y7.98%
EPS Next 5Y9.09%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
Revenue Next Year2.25%
Revenue Next 2Y4.37%
Revenue Next 3Y5.09%
Revenue Next 5Y5.75%
EBIT growth 1Y1.96%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year12.3%
EBIT Next 3Y9.02%
EBIT Next 5Y7.61%
FCF growth 1Y-19.32%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y-2.61%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%