AUTOZONE INC (AZO) Stock Fundamental Analysis
USA - NYSE:AZO - US0533321024 - Common Stock
4215.08 USD
-38.63 (-0.91%)
4215.08 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. AZO scores excellent on profitability, but there are some minor concerns on its financial health. AZO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
AZO had positive earnings in 4 of the past 5 years.
AZO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AZO (13.77%) is better than 87.70% of its industry peers.
AZO's Return On Invested Capital of 32.34% is amongst the best of the industry. AZO outperforms 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 11.93%.
The last Return On Invested Capital (32.34%) for AZO is well below the 3 year average (37.29%), which needs to be investigated, but indicates that AZO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | N/A | ||
| ROIC | 32.34% |
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
The Profit Margin of AZO (13.56%) is better than 94.26% of its industry peers.
AZO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 19.63%, AZO belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
In the last couple of years the Operating Margin of AZO has grown nicely.
AZO's Gross Margin of 52.95% is amongst the best of the industry. AZO outperforms 81.97% 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 | 19.63% | ||
| PM (TTM) | 13.56% | ||
| GM | 52.95% |
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.
There is no outstanding debt for AZO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AZO has an Altman-Z score of 3.10. This indicates that AZO is financially healthy and has little risk of bankruptcy at the moment.
AZO has a better Altman-Z score (3.10) than 72.13% of its industry peers.
AZO has a debt to FCF ratio of 4.42. This is a neutral value as AZO would need 4.42 years to pay back of all of its debts.
AZO has a Debt to FCF ratio of 4.42. This is in the better half of the industry: AZO outperforms 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 3.1 |
ROIC/WACC3.43
WACC9.43%
2.3 Liquidity
A Current Ratio of 0.84 indicates that AZO may have some problems paying its short term obligations.
AZO's Current ratio of 0.84 is on the low side compared to the rest of the industry. AZO is outperformed by 81.15% of its industry peers.
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 0.12, AZO is not doing good in the industry: 93.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The earnings per share for AZO have decreased by -3.23% in the last year.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.01% on average per year.
EPS 1Y (TTM)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.6%
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 12.78% yearly.
Based on estimates for the next years, AZO will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
EPS Next Y16.72%
EPS Next 2Y14.08%
EPS Next 3Y12.52%
EPS Next 5Y12.78%
Revenue Next Year6.63%
Revenue Next 2Y6.64%
Revenue Next 3Y6.82%
Revenue Next 5Y7.06%
3.3 Evolution
The EPS 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
A Price/Earnings ratio of 29.09 indicates a quite expensive valuation of AZO.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 60.66% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. AZO is around the same levels.
The Price/Forward Earnings ratio is 24.93, which indicates a rather expensive current valuation of AZO.
The rest of the industry has a similar Price/Forward Earnings ratio as AZO.
AZO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
63.11% 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 | 35.07 | ||
| EV/EBITDA | 18.47 |
4.3 Compensation for Growth
AZO's 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.
AZO's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)1.94
EPS Next 2Y14.08%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4215.08
-38.63 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.94%
Inst Owner Change0.14%
Ins Owners0.25%
Ins Owner Change-2.96%
Market Cap70.22B
Analysts81.82
Price Target4637.44 (10.02%)
Short Float %1.47%
Short Ratio2.02
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)-4.72%
Min EPS beat(2)-5.67%
Max EPS beat(2)-3.76%
EPS beat(4)0
Avg EPS beat(4)-4.52%
Min EPS beat(4)-5.67%
Max EPS beat(4)-3.76%
EPS beat(8)4
Avg EPS beat(8)-0.47%
EPS beat(12)8
Avg EPS beat(12)2.26%
EPS beat(16)12
Avg EPS beat(16)6.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)1.49%
Revenue beat(8)2
Avg Revenue beat(8)-0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)9
Avg Revenue beat(16)1.36%
PT rev (1m)2.48%
PT rev (3m)2.83%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 24.93 | ||
| P/S | 3.72 | ||
| P/FCF | 35.07 | ||
| P/OCF | 21.71 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.47 |
EPS(TTM)144.88
EY3.44%
EPS(NY)169.1
Fwd EY4.01%
FCF(TTM)120.19
FCFY2.85%
OCF(TTM)194.17
OCFY4.61%
SpS1134.54
BVpS-238.56
TBVpS-256.73
PEG (NY)1.74
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.77% | ||
| ROE | N/A | ||
| ROCE | 40.53% | ||
| ROIC | 32.34% | ||
| ROICexc | 33.32% | ||
| ROICexgc | 34.49% | ||
| OM | 19.63% | ||
| PM (TTM) | 13.56% | ||
| GM | 52.95% | ||
| FCFM | 10.59% |
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-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.42 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 208.49% | ||
| Cap/Sales | 6.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.2% | ||
| Profit Quality | 78.11% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 3.1 |
F-Score6
WACC9.43%
ROIC/WACC3.43
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)-3.23%
EPS 3Y7.22%
EPS 5Y15.01%
EPS Q2Q%-5.56%
EPS Next Y16.72%
EPS Next 2Y14.08%
EPS Next 3Y12.52%
EPS Next 5Y12.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.6%
Revenue Next Year6.63%
Revenue Next 2Y6.64%
Revenue Next 3Y6.82%
Revenue Next 5Y7.06%
EBIT growth 1Y-0.1%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year11.01%
EBIT Next 3Y8.94%
EBIT Next 5Y7.61%
FCF growth 1Y-15.41%
FCF growth 3Y-12.64%
FCF growth 5Y3.42%
OCF growth 1Y4.32%
OCF growth 3Y-5.13%
OCF growth 5Y7.13%