NYSE:AZO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Questionable track record with imperfect balance sheet.


Similar Companies

Share Price & News

How has AutoZone's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

NYSE:AZO

3.1%

US Specialty Retail

-1.9%

US Market


1 Year Return

38.3%

NYSE:AZO

-7.9%

US Specialty Retail

-3.3%

US Market

AZO outperformed the Specialty Retail industry which returned -8% over the past year.

AZO outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

AZOIndustryMarket
7 Day-2.4%3.1%-1.9%
30 Day-7.1%-4.9%-6.2%
90 Day1.2%2.2%0.3%
1 Year38.3%38.3%-6.4%-7.9%-1.1%-3.3%
3 Year41.4%41.4%22.8%16.4%37.9%28.9%
5 Year97.7%97.7%44.9%32.0%50.8%34.1%

Price Volatility Vs. Market

How volatile is AutoZone's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AutoZone undervalued based on future cash flows and its price relative to the stock market?

18.63x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

AutoZone's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

AutoZone's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

AutoZone is overvalued based on earnings compared to the US Specialty Retail industry average.

AutoZone is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

AutoZone is poor value based on expected growth next year.


Price Based on Value of Assets

AutoZone has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.


Next Steps

Future Growth

How is AutoZone expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AutoZone's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

AutoZone's earnings are expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).

AutoZone's revenue growth is positive but not above the United States of America market average.

AutoZone's earnings growth is positive but not above the United States of America market average.

AutoZone's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if AutoZone will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has AutoZone performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AutoZone's year on year earnings growth rate has been positive over the past 5 years.

AutoZone's 1-year earnings growth is equal to the 5-year average.

AutoZone's earnings growth has not exceeded the US Specialty Retail industry average in the past year (5.9% vs 8.3%).


Return on Equity

It is difficult to establish if AutoZone has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

AutoZone used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

AutoZone's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AutoZone's financial position?


Financial Position Analysis

AutoZone's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

AutoZone's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

AutoZone has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if AutoZone's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (41.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 12.1x coverage).


Balance Sheet

High level of physical assets or inventory.

AutoZone has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate AutoZone's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate AutoZone's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as AutoZone has not reported any payouts.

Unable to verify if AutoZone's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as AutoZone has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of AutoZone's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of AutoZone's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Bill Rhodes (54yo)

14.4yrs

Tenure

US$4,220,619

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

Bill's remuneration is lower than average for companies of similar size in United States of America.

Bill's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

6.4yrs

Average Tenure

55yo

Average Age

The average tenure for the AutoZone management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.7yrs

Average Tenure

61yo

Average Age

The tenure for the AutoZone board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$225,30124 May 19
William Hackney
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Merchandising
Shares217.06
Max PriceUS$1,037.95
SellUS$7,469,39022 Mar 19
Thomas Newbern
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Store Operations
Shares7,500
Max PriceUS$998.39

Ownership Breakdown


Management Team

  • Bill Rhodes (54yo)

    Chairman

    • Tenure: 14.4yrs
    • Compensation: US$4.22m
  • Bill Giles (60yo)

    CFO and Executive VP of Finance

    • Tenure: 13.3yrs
    • Compensation: US$2.51m
  • Bill Hackney (54yo)

    Senior Vice President of Merchandising

    • Tenure: 3.8yrs
  • Charlie Pleas (54yo)

    Senior VP & Controller

    • Tenure: 0.0yrs
  • Ron Griffin (65yo)

    Senior VP & Chief Information Officer

    • Tenure: 7.2yrs
    • Compensation: US$1.84m
  • Tom Newbern (57yo)

    Executive Vice President of Store Operations

    • Tenure: 12.6yrs
    • Compensation: US$2.05m
  • Mark Finestone (58yo)

    Executive Vice President of Merchandising

    • Tenure: 3.8yrs
    • Compensation: US$2.10m
  • Kristen Wright (43yo)

    Senior VP

    • Tenure: 5.6yrs
  • Rick Smith (55yo)

    Senior Vice President of Human Resources & Customer Satisfaction

    • Tenure: 3.7yrs
  • Brian Campbell

    Vice President of Tax

    • Tenure: 0.0yrs

Board Members

  • Bill Rhodes (54yo)

    Chairman

    • Tenure: 14.4yrs
    • Compensation: US$4.22m
  • George Mrkonic (67yo)

    Director

    • Tenure: 13.2yrs
    • Compensation: US$247.50k
  • Doug Brooks (66yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: US$213.75k
  • Luis Nieto (63yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: US$225.62k
  • Linda Goodspeed (57yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$227.50k
  • Andy McKenna (73yo)

    Director

    • Tenure: 19.6yrs
    • Compensation: US$240.00k
  • D. Jordan (57yo)

    Director

    • Tenure: 6.0yrs
    • Compensation: US$227.50k
  • Butch Graves (57yo)

    Lead Director

    • Tenure: 10.6yrs
    • Compensation: US$260.00k
  • Enderson Guimaraes (60yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$215.00k
  • Gale King (62yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$136.07k

Company Information

AutoZone, Inc.'s company bio, 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$26.130b
  • Shares outstanding: 24.53m
  • Website: https://www.autozone.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1991
AZ5DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1991
0HJLLSE (London Stock Exchange)YesCommon StockGBUSDApr 1991
AZOWBAG (Wiener Boerse AG)YesCommon StockATEURApr 1991
AZO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1991
AZOI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.05 COM USD0.01BRBRLMay 2019

Biography

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 remanufa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 23:32
End of Day Share Price2019/08/23 00:00
Earnings2019/05/04
Annual Earnings2018/08/25


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.