AUTOZONE INC (AZO) Stock Fundamental Analysis
NYSE:AZO - New York Stock Exchange, Inc. - US0533321024 - Common Stock - Currency: USD
Overall AZO gets a fundamental rating of 5 out of 10. We evaluated AZO 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.
Each year in the past 5 years AZO had a positive operating cash flow.
1.2 Ratios
AZO has a better Return On Assets (14.39%) than 87.60% of its industry peers.
AZO has a Return On Invested Capital of 33.77%. This is amongst the best in the industry. AZO outperforms 97.52% 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 13.13%.
| 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's Operating Margin of 20.06% is amongst the best of the industry. AZO outperforms 98.35% of its industry peers.
AZO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 53.13%, AZO belongs to the best 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AZO 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
An Altman-Z score of 2.82 indicates that AZO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AZO (2.82) is better than 65.29% of its industry peers.
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.
The Debt to FCF ratio of AZO (4.50) is better than 65.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.82 |
ROIC/WACC3.62
WACC9.33%
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 has a worse Current ratio (0.84) than 84.30% 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.
AZO has a worse Quick ratio (0.13) than 94.21% of its industry peers.
| 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%.
Measured over the past years, AZO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.86% on average per year.
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
Based on estimates for the next years, AZO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.09% on average per year.
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 Y1.27%
EPS Next 2Y7.04%
EPS Next 3Y8.53%
EPS Next 5Y9.09%
Revenue Next Year1.97%
Revenue Next 2Y4.25%
Revenue Next 3Y5.04%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AZO is valuated rather expensively with a Price/Earnings ratio of 24.65.
60.33% of the companies in the same industry are more expensive than AZO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.32, AZO is valued at the same level.
AZO is valuated rather expensively with a Price/Forward Earnings ratio of 21.23.
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 22.13, AZO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
AZO's Enterprise Value to EBITDA ratio is in line with the industry average.
61.16% 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 | 30.26 | ||
| EV/EBITDA | 16.13 |
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)19.45
PEG (5Y)1.31
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 |
3642.6
-40.87 (-1.11%)
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-1.96%
Market Cap60.94B
Analysts81.82
Price Target4170.27 (14.49%)
Short Float %1.41%
Short Ratio1.63
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)6.65%
PT rev (3m)12.28%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 21.23 | ||
| P/S | 3.26 | ||
| P/FCF | 30.26 | ||
| P/OCF | 19.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.13 |
EPS(TTM)147.75
EY4.06%
EPS(NY)171.54
Fwd EY4.71%
FCF(TTM)120.36
FCFY3.3%
OCF(TTM)187.41
OCFY5.14%
SpS1116.11
BVpS-266.45
TBVpS-284.54
PEG (NY)19.45
PEG (5Y)1.31
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 | 2.82 |
F-Score7
WACC9.33%
ROIC/WACC3.62
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 Y1.27%
EPS Next 2Y7.04%
EPS Next 3Y8.53%
EPS Next 5Y9.09%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y8.12%
Revenue growth 5Y9.28%
Sales Q2Q%5.4%
Revenue Next Year1.97%
Revenue Next 2Y4.25%
Revenue Next 3Y5.04%
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%