company background image
AZO

AutoZoneNYSE:AZO Stock Report

Market Cap

US$39.1b

7D

2.7%

1Y

60.2%

Updated

03 Dec, 2021

Data

Company Financials +
AZO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends0/6

AZO Stock Overview

AutoZone, Inc. retails and distributes automotive replacement parts and accessories.

AutoZone Competitors

O'Reilly Automotive

NasdaqGS:ORLY

US$44.4b

Advance Auto Parts

NYSE:AAP

US$14.0b

Lithia Motors

NYSE:LAD

US$8.8b

Group 1 Automotive

NYSE:GPI

US$3.5b

Price History & Performance

Summary of all time highs, changes and price drops for AutoZone
Historical stock prices
Current Share PriceUS$1,863.00
52 Week HighUS$1,941.36
52 Week LowUS$1,085.85
Beta0.86
1 Month Change3.98%
3 Month Change21.19%
1 Year Change60.24%
3 Year Change114.10%
5 Year Change131.98%
Change since IPO25,268.51%

Recent News & Updates

Nov 30

AutoZone Isn't The Preferred Auto Repair Retail Play

Auto repair retail is a great play right now given the favorable tailwinds behind the sector along with pricing power. AutoZone isn’t the best way to play this theme due to its DIY weighted revenues. DIY has less pricing power and will likely see less excess demand in the reopening. I’m neutral on AutoZone and prefer players with similar valuations and a higher DIFM exposure despite the very attractive distribution policy of the company.

Nov 25
Is It Time To Consider Buying AutoZone, Inc. (NYSE:AZO)?

Is It Time To Consider Buying AutoZone, Inc. (NYSE:AZO)?

Today we're going to take a look at the well-established AutoZone, Inc. ( NYSE:AZO ). The company's stock received a...

Oct 26
With EPS Growth And More, AutoZone (NYSE:AZO) Is Interesting

With EPS Growth And More, AutoZone (NYSE:AZO) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Oct 11
Estimating The Intrinsic Value Of AutoZone, Inc. (NYSE:AZO)

Estimating The Intrinsic Value Of AutoZone, Inc. (NYSE:AZO)

Does the October share price for AutoZone, Inc. ( NYSE:AZO ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

AZOUS Specialty RetailUS Market
7D2.7%-4.4%-2.7%
1Y60.2%22.9%16.6%

Return vs Industry: AZO exceeded the US Specialty Retail industry which returned 25.8% over the past year.

Return vs Market: AZO exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is AZO's price volatile compared to industry and market?
AZO volatility
AZO Average Weekly Movement2.9%
Specialty Retail Industry Average Movement6.9%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: AZO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AZO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197985,050Bill Rhodeshttps://www.autozone.com

AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Its products include A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs.

AutoZone Fundamentals Summary

How do AutoZone's earnings and revenue compare to its market cap?
AZO fundamental statistics
Market CapUS$39.06b
Earnings (TTM)US$2.17b
Revenue (TTM)US$14.63b

18.0x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AZO income statement (TTM)
RevenueUS$14.63b
Cost of RevenueUS$6.91b
Gross ProfitUS$7.72b
ExpensesUS$5.55b
EarningsUS$2.17b

Last Reported Earnings

Aug 28, 2021

Next Earnings Date

Dec 07, 2021

Earnings per share (EPS)103.51
Gross Margin52.75%
Net Profit Margin14.84%
Debt/Equity Ratio-293.2%

How did AZO perform over the long term?

See historical performance and comparison

Valuation

Is AutoZone undervalued compared to its fair value and its price relative to the market?

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AZO ($1863) is trading below our estimate of fair value ($1929.39)

Significantly Below Fair Value: AZO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AZO is poor value based on its PE Ratio (18x) compared to the US Specialty Retail industry average (9.6x).

PE vs Market: AZO is poor value based on its PE Ratio (18x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: AZO is poor value based on its PEG Ratio (10.3x)


Price to Book Ratio

PB vs Industry: AZO has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.


Future Growth

How is AutoZone forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZO's forecast earnings growth (1.7% per year) is below the savings rate (2%).

Earnings vs Market: AZO's earnings (1.7% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: AZO's earnings are forecast to grow, but not significantly.

Revenue vs Market: AZO's revenue (3.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: AZO's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AZO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has AutoZone performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZO has high quality earnings.

Growing Profit Margin: AZO's current net profit margins (14.8%) are higher than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: AZO's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: AZO's earnings growth over the past year (25.4%) exceeds its 5-year average (11% per year).

Earnings vs Industry: AZO earnings growth over the past year (25.4%) underperformed the Specialty Retail industry 141.7%.


Return on Equity

High ROE: AZO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is AutoZone's financial position?


Financial Position Analysis

Short Term Liabilities: AZO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AZO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AZO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AZO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: AZO's debt is well covered by operating cash flow (66.8%).

Interest Coverage: AZO's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet


Dividend

What is AutoZone current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AZO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AZO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AZO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Bill Rhodes (56 yo)

16.75yrs

Tenure

US$14,838,996

Compensation

Mr. William C. Rhodes, III, also known as Bill, has been the President and Chief Executive Officer of Autozone, Inc. since March 14, 2005. Mr. Rhodes served as an Executive Vice President of Store Operatio...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD14.84M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AZO's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: AZO's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AZO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AutoZone, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: AutoZone, Inc.
  • Ticker: AZO
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$39.063b
  • Shares outstanding: 20.97m
  • Website: https://www.autozone.com

Number of Employees


Location

  • AutoZone, Inc.
  • 123 South Front Street
  • Memphis
  • Tennessee
  • 38103
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:51
End of Day Share Price2021/12/03 00:00
Earnings2021/08/28
Annual Earnings2021/08/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.