AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock - Currency: USD
Taking everything into account, AZO scores 5 out of 10 in our fundamental rating. AZO was compared to 121 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 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.
Each year in the past 5 years AZO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.39%, AZO belongs to the top of the industry, outperforming 89.26% of the companies in the same industry.
AZO's Return On Invested Capital of 33.77% is amongst the best of the industry. AZO outperforms 98.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AZO is significantly above the industry average of 12.74%.
| 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.
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 (20.06%) than 98.35% of its industry peers.
AZO's Operating Margin has improved in the last couple of years.
AZO has a Gross Margin of 53.13%. This is amongst the best in the industry. AZO outperforms 80.99% 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 | 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.
The number of shares outstanding for AZO has been reduced compared to 5 years ago.
The debt/assets ratio for AZO is higher compared to a year ago.
2.2 Solvency
AZO has an Altman-Z score of 2.92. 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.
Looking at the Altman-Z score, with a value of 2.92, AZO is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
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.
AZO has a Debt to FCF ratio of 4.50. This is in the better half of the industry: AZO outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.92 |
ROIC/WACC3.55
WACC9.52%
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.
AZO's Current ratio of 0.84 is on the low side compared to the rest of the industry. AZO is outperformed by 85.12% 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 0.13, AZO is not doing good in the industry: 94.21% 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 4.97%.
The Earnings Per Share has been growing by 18.86% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.72% in the past year.
Measured over the past years, AZO shows a quite strong growth in Revenue. The Revenue has been growing by 9.28% on average per year.
EPS 1Y (TTM)4.97%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.41%
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 9.50% yearly.
AZO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y1.27%
EPS Next 2Y7.04%
EPS Next 3Y8.53%
EPS Next 5Y9.5%
Revenue Next Year1.5%
Revenue Next 2Y3.82%
Revenue Next 3Y4.79%
Revenue Next 5Y5.7%
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.
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
The Price/Earnings ratio is 25.87, which means the current valuation is very expensive for AZO.
The rest of the industry has a similar Price/Earnings ratio as AZO.
Compared to an average S&P500 Price/Earnings ratio of 26.60, AZO is valued at the same level.
With a Price/Forward Earnings ratio of 22.48, AZO is valued on the expensive side.
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 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 22.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AZO.
AZO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 17.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AZO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)20.41
PEG (5Y)1.37
EPS Next 2Y7.04%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
AZO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:AZO (5/21/2025, 12:13:42 PM)
3856.35
-23.8 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change1.35%
Ins Owners0.3%
Ins Owner Change-0.15%
Market Cap64.52B
Analysts80
Price Target3910.22 (1.4%)
Short Float %1.38%
Short Ratio1.55
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)0.48%
PT rev (3m)5.47%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.87 | ||
| Fwd PE | 22.48 | ||
| P/S | 3.46 | ||
| P/FCF | 32.04 | ||
| P/OCF | 20.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.05 |
EPS(TTM)149.08
EY3.87%
EPS(NY)171.54
Fwd EY4.45%
FCF(TTM)120.36
FCFY3.12%
OCF(TTM)187.41
OCFY4.86%
SpS1116.11
BVpS-266.45
TBVpS-284.54
PEG (NY)20.41
PEG (5Y)1.37
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 | 2.92 |
F-Score7
WACC9.52%
ROIC/WACC3.55
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)4.97%
EPS 3Y16.07%
EPS 5Y18.86%
EPS Q2Q%-2.08%
EPS Next Y1.27%
EPS Next 2Y7.04%
EPS Next 3Y8.53%
EPS Next 5Y9.5%
Revenue 1Y (TTM)4.72%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%2.41%
Revenue Next Year1.5%
Revenue Next 2Y3.82%
Revenue Next 3Y4.79%
Revenue Next 5Y5.7%
EBIT growth 1Y1.96%
EBIT growth 3Y8.24%
EBIT growth 5Y11.32%
EBIT Next Year12.15%
EBIT Next 3Y8.85%
EBIT Next 5Y7.51%
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%