AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AZO - US0533321024 - Common Stock
3445.71 USD
-23.39 (-0.67%)
3445.71 USD
0 (0%)
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AZO was profitable.
AZO had a positive operating cash flow in the past year.
Each year in the past 5 years AZO has been profitable.
In the past 5 years AZO always reported a positive cash flow from operatings.
1.2 Ratios
AZO's Return On Assets of 12.91% is amongst the best of the industry. AZO outperforms 88.43% of its industry peers.
AZO has a better Return On Invested Capital (29.27%) than 95.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.26%.
The 3 year average ROIC (34.01%) for AZO is well above the current ROIC(29.27%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | N/A | ||
| ROIC | 29.27% |
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 Profit Margin of 13.19%. This is amongst the best in the industry. AZO outperforms 95.04% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
AZO has a Operating Margin of 19.06%. This is amongst the best in the industry. AZO outperforms 95.87% of its industry peers.
AZO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.62%, AZO belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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 | 19.06% | ||
| PM (TTM) | 13.19% | ||
| GM | 52.62% |
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
AZO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for AZO has been reduced compared to 1 year ago.
AZO has less shares outstanding than it did 5 years ago.
AZO has a better debt/assets ratio than last year.
2.2 Solvency
AZO has an Altman-Z score of 2.74. 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 better Altman-Z score (2.74) than 61.98% of its industry peers.
AZO has a debt to FCF ratio of 4.92. This is a neutral value as AZO would need 4.92 years to pay back of all of its debts.
AZO has a better Debt to FCF ratio (4.92) than 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.92 | ||
| Altman-Z | 2.74 |
ROIC/WACC3.11
WACC9.42%
2.3 Liquidity
AZO has a Current Ratio of 0.88. This is a bad value and indicates that AZO is not financially healthy enough and could expect problems in meeting its short term obligations.
AZO has a worse Current ratio (0.88) than 80.17% of its industry peers.
A Quick Ratio of 0.14 indicates that AZO may have some problems paying its short term obligations.
With a Quick ratio value of 0.14, 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 | 0.88 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
AZO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.20%.
The Earnings Per Share has been growing by 15.01% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.13% yearly.
EPS Next Y7.36%
EPS Next 2Y12.53%
EPS Next 3Y12.16%
EPS Next 5Y11.42%
Revenue Next Year7.98%
Revenue Next 2Y7.39%
Revenue Next 3Y7.77%
Revenue Next 5Y7.13%
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
With a Price/Earnings ratio of 24.03, AZO is valued on the expensive side.
66.94% 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 26.54.
A Price/Forward Earnings ratio of 18.78 indicates a rather expensive valuation of AZO.
Based on the Price/Forward Earnings ratio, AZO is valued a bit cheaper than the industry average as 65.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, AZO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 18.78 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 60.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.01 | ||
| EV/EBITDA | 15.59 |
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.
AZO's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.26
PEG (5Y)1.6
EPS Next 2Y12.53%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
3445.71
-23.39 (-0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.35%
Inst Owner Change-6.96%
Ins Owners0.23%
Ins Owner Change-4.07%
Market Cap57.30B
Revenue(TTM)19.29B
Net Income(TTM)2.50B
Analysts83.13
Price Target4651.44 (34.99%)
Short Float %1.78%
Short Ratio2.28
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)-5.36%
Min EPS beat(2)-5.67%
Max EPS beat(2)-5.06%
EPS beat(4)0
Avg EPS beat(4)-4.63%
Min EPS beat(4)-5.67%
Max EPS beat(4)-3.76%
EPS beat(8)3
Avg EPS beat(8)-1.35%
EPS beat(12)7
Avg EPS beat(12)1.46%
EPS beat(16)11
Avg EPS beat(16)4.9%
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-1%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.89%
PT rev (1m)-0.12%
PT rev (3m)7.43%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-12.68%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-7.74%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 18.78 | ||
| P/S | 3.03 | ||
| P/FCF | 32.01 | ||
| P/OCF | 18.38 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.59 |
EPS(TTM)143.4
EY4.16%
EPS(NY)183.47
Fwd EY5.32%
FCF(TTM)107.64
FCFY3.12%
OCF(TTM)187.45
OCFY5.44%
SpS1138.83
BVpS-205.31
TBVpS-223.51
PEG (NY)3.26
PEG (5Y)1.6
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.91% | ||
| ROE | N/A | ||
| ROCE | 36.7% | ||
| ROIC | 29.27% | ||
| ROICexc | 30.1% | ||
| ROICexgc | 31.08% | ||
| OM | 19.06% | ||
| PM (TTM) | 13.19% | ||
| GM | 52.62% | ||
| FCFM | 9.45% |
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 | 4.92 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 216.45% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 73.81% | ||
| Profit Quality | 71.65% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 2.74 |
F-Score6
WACC9.42%
ROIC/WACC3.11
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 Y7.36%
EPS Next 2Y12.53%
EPS Next 3Y12.16%
EPS Next 5Y11.42%
Revenue 1Y (TTM)3.81%
Revenue growth 3Y5.23%
Revenue growth 5Y8.44%
Sales Q2Q%8.15%
Revenue Next Year7.98%
Revenue Next 2Y7.39%
Revenue Next 3Y7.77%
Revenue Next 5Y7.13%
EBIT growth 1Y-4.71%
EBIT growth 3Y3.35%
EBIT growth 5Y7.61%
EBIT Next Year20.01%
EBIT Next 3Y12.98%
EBIT Next 5Y9.9%
FCF growth 1Y-7.32%
FCF growth 3Y-10.99%
FCF growth 5Y-4.58%
OCF growth 1Y3.77%
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.
What is the valuation status for AZO stock?
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 24.03 and the Price/Book (PB) ratio is -16.78.
What is the expected EPS growth for AUTOZONE INC (AZO) stock?
The Earnings per Share (EPS) of AUTOZONE INC (AZO) is expected to grow by 7.36% in the next year.