AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO - US0533321024 - Common Stock
4110.61 USD
-17.08 (-0.41%)
4110.61 USD
0 (0%)
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 124 industry peers in the Specialty Retail industry. AZO scores excellent on profitability, but there are some minor concerns on its financial health. AZO is quite expensive at the moment. It does show a decent 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.
In the past 5 years AZO always reported a positive cash flow from operatings.
1.2 Ratios
AZO has a Return On Assets of 13.77%. This is amongst the best in the industry. AZO outperforms 87.90% of its industry peers.
The Return On Invested Capital of AZO (32.34%) is better than 96.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AZO is significantly above the industry average of 11.78%.
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 94.35% of its industry peers.
In the last couple of years the Profit Margin of AZO has remained more or less at the same level.
AZO has a better Operating Margin (19.63%) than 97.58% of its industry peers.
In the last couple of years the Operating Margin of AZO has grown nicely.
The Gross Margin of AZO (52.95%) is better than 82.26% 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.
Compared to 1 year ago, AZO has less shares outstanding
The number of shares outstanding for AZO has been reduced compared to 5 years ago.
Compared to 1 year ago, AZO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.05 indicates that AZO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.05, AZO is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
The Debt to FCF ratio of AZO is 4.42, which is a neutral value as it means it would take AZO, 4.42 years of fcf income to pay off all of its debts.
AZO has a better Debt to FCF ratio (4.42) than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 3.05 |
ROIC/WACC3.54
WACC9.14%
2.3 Liquidity
AZO has a Current 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.
Looking at the Current ratio, with a value of 0.84, AZO is doing worse than 83.87% of the companies in the same industry.
A Quick Ratio of 0.12 indicates that AZO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.12, AZO is doing worse than 92.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 |
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.
The Revenue has been growing slightly by 5.15% in the past 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 Year2.26%
Revenue Next 2Y4.37%
Revenue Next 3Y5.09%
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
Based on the Price/Earnings ratio of 27.82, the valuation of AZO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AZO indicates a somewhat cheap valuation: AZO is cheaper than 61.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. AZO is around the same levels.
AZO is valuated rather expensively with a Price/Forward Earnings ratio of 24.36.
AZO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, AZO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 24.36 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA is on the same level as the industry average.
AZO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.34 | ||
| EV/EBITDA | 18.05 |
4.3 Compensation for Growth
The excellent profitability rating of AZO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y6.16%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
No dividends for AZO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4110.61
-17.08 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.33%
Inst Owner Change0.14%
Ins Owners0.27%
Ins Owner Change-3.04%
Market Cap68.77B
Analysts81.82
Price Target4225.13 (2.79%)
Short Float %1.57%
Short Ratio1.97
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)0.34%
PT rev (3m)8.05%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-1.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 24.36 | ||
| P/S | 3.64 | ||
| P/FCF | 34.34 | ||
| P/OCF | 21.26 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.05 |
EPS(TTM)147.75
EY3.59%
EPS(NY)168.71
Fwd EY4.1%
FCF(TTM)119.69
FCFY2.91%
OCF(TTM)193.36
OCFY4.7%
SpS1129.79
BVpS-237.56
TBVpS-255.65
PEG (NY)N/A
PEG (5Y)1.48
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 | 3.05 |
F-Score6
WACC9.14%
ROIC/WACC3.54
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 Year2.26%
Revenue Next 2Y4.37%
Revenue Next 3Y5.09%
Revenue Next 5Y5.75%
EBIT growth 1Y-0.1%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year11.17%
EBIT Next 3Y8.8%
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%