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 121 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 correct valuation and a medium growth rate.
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.
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
With an excellent Return On Assets value of 14.39%, AZO belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
With an excellent Return On Invested Capital value of 33.77%, AZO belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
AZO had an Average Return On Invested Capital over the past 3 years of 37.29%. This is significantly above the industry average of 13.07%.
| 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 has a Profit Margin of 13.96%. This is amongst the best in the industry. AZO outperforms 94.21% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
AZO has a better Operating Margin (20.06%) than 98.35% of its industry peers.
AZO's Operating Margin has improved in the last couple of years.
AZO has a better Gross Margin (53.13%) than 82.64% 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
AZO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AZO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AZO has less shares outstanding
AZO has a worse debt/assets ratio than last year.
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 66.12% of its industry peers.
The Debt to FCF ratio of AZO is 4.50, which is a neutral value as it means it would take AZO, 4.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AZO (4.50) is better than 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.87 |
ROIC/WACC4.07
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AZO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, AZO is doing worse than 84.30% of the companies in the same industry.
AZO has a Quick Ratio of 0.84. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.13, AZO is not doing good in the industry: 93.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
AZO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.19%.
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 5.15%.
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
The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y-0.62%
EPS Next 2Y6.26%
EPS Next 3Y8%
EPS Next 5Y9.09%
Revenue Next Year2.14%
Revenue Next 2Y4.4%
Revenue Next 3Y5.13%
Revenue Next 5Y5.75%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 25.51, AZO can be considered very expensive at the moment.
61.16% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. AZO is around the same levels.
With a Price/Forward Earnings ratio of 22.30, AZO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as AZO.
The average S&P500 Price/Forward Earnings ratio is at 21.90. AZO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 22.3 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA is on the same level as the industry average.
61.98% 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 | 31.32 | ||
| EV/EBITDA | 16.62 |
4.3 Compensation for Growth
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y6.26%
EPS Next 3Y8%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3769.26
+83.92 (+2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.1%
Inst Owner Change1.28%
Ins Owners0.3%
Ins Owner Change-2.66%
Market Cap63.06B
Analysts81.82
Price Target4210.7 (11.71%)
Short Float %1.33%
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)7.68%
PT rev (3m)10.37%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 22.3 | ||
| P/S | 3.38 | ||
| P/FCF | 31.32 | ||
| P/OCF | 20.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.62 |
EPS(TTM)147.75
EY3.92%
EPS(NY)169.03
Fwd EY4.48%
FCF(TTM)120.36
FCFY3.19%
OCF(TTM)187.41
OCFY4.97%
SpS1116.11
BVpS-266.45
TBVpS-284.54
PEG (NY)N/A
PEG (5Y)1.35
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
WACC8.29%
ROIC/WACC4.07
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-0.62%
EPS Next 2Y6.26%
EPS Next 3Y8%
EPS Next 5Y9.09%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
Revenue Next Year2.14%
Revenue Next 2Y4.4%
Revenue Next 3Y5.13%
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%