Loading...

AutoZone

NYSE:AZO
Snowflake Description

Questionable track record with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AZO
NYSE
$28B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The last earnings update was 11 days ago. More info.


Add to Portfolio Compare Print
AZO Share Price and Events
7 Day Returns
2.8%
NYSE:AZO
2.4%
US Specialty Retail
0.1%
US Market
1 Year Returns
64%
NYSE:AZO
1%
US Specialty Retail
1.2%
US Market
AZO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AutoZone (AZO) 2.8% 14.4% 14.8% 64% 50.4% 112.2%
US Specialty Retail 2.4% -1.9% 0.8% 1% 27.8% 43.4%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • AZO outperformed the Specialty Retail industry which returned 1% over the past year.
  • AZO outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
AZO
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AutoZone to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AutoZone.

NYSE:AZO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AZO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (18.65%))
0.994
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.994 * 5.96%)
8.66%

Discounted Cash Flow Calculation for NYSE:AZO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AutoZone is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AZO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.66%)
2019 1,583.02 Analyst x5 1,456.91
2020 1,488.47 Analyst x6 1,260.76
2021 1,501.20 Analyst x2 1,170.26
2022 1,487.23 Est @ -0.93% 1,067.01
2023 1,489.72 Est @ 0.17% 983.65
2024 1,503.67 Est @ 0.94% 913.77
2025 1,525.84 Est @ 1.47% 853.38
2026 1,554.09 Est @ 1.85% 799.93
2027 1,586.95 Est @ 2.11% 751.78
2028 1,623.44 Est @ 2.3% 707.80
Present value of next 10 years cash flows $9,965.26
NYSE:AZO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,623.44 × (1 + 2.73%) ÷ (8.66% – 2.73%)
$28,144.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $28,144.42 ÷ (1 + 8.66%)10
$12,270.60
NYSE:AZO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,965.26 + $12,270.60
$22,235.86
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $22,235.86 / 24.53
$906.52
NYSE:AZO Discount to Share Price
Calculation Result
Value per share (USD) From above. $906.52
Current discount Discount to share price of $1,126.00
= -1 x ($1,126.00 - $906.52) / $906.52
-24.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AutoZone is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AutoZone's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AutoZone's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AZO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-04) in USD $57.18
NYSE:AZO Share Price ** NYSE (2019-06-18) in USD $1126
United States of America Specialty Retail Industry PE Ratio Median Figure of 63 Publicly-Listed Specialty Retail Companies 14.34x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AutoZone.

NYSE:AZO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AZO Share Price ÷ EPS (both in USD)

= 1126 ÷ 57.18

19.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does AutoZone's expected growth come at a high price?
Raw Data
NYSE:AZO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
0.6%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 55 Publicly-Listed Specialty Retail Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:AZO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.69x ÷ 0.6%

35.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AutoZone is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AutoZone's assets?
Raw Data
NYSE:AZO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-04) in USD $-64.59
NYSE:AZO Share Price * NYSE (2019-06-18) in USD $1126
United States of America Specialty Retail Industry PB Ratio Median Figure of 101 Publicly-Listed Specialty Retail Companies 1.34x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:AZO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AZO Share Price ÷ Book Value per Share (both in USD)

= 1126 ÷ -64.59

-17.43x

* Primary Listing of AutoZone.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AutoZone has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.
X
Value checks
We assess AutoZone's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. AutoZone has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AutoZone expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AutoZone expected to grow at an attractive rate?
  • AutoZone's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • AutoZone's earnings growth is positive but not above the United States of America market average.
  • AutoZone's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AZO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AZO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 0.6%
NYSE:AZO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 2.9%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AZO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AZO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-08-31 12,524 2,069 1,613 7
2020-08-31 12,087 2,031 1,561 21
2019-08-31 11,810 1,932 1,594 20
NYSE:AZO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-04 11,434 2,111 1,452
2019-02-09 11,311 2,145 1,413
2018-11-17 11,274 1,964 1,408
2018-08-25 11,221 2,080 1,338
2018-05-05 11,175 1,818 1,371
2018-02-10 11,134 1,759 1,336
2017-11-18 11,010 1,729 1,284
2017-08-26 10,889 1,571 1,281
2017-05-06 10,775 1,555 1,274
2017-02-11 10,750 1,643 1,270
2016-11-19 10,717 1,701 1,261
2016-08-27 10,636 1,641 1,241
2016-05-07 10,527 1,621 1,215

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AutoZone's earnings are expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
  • AutoZone's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AZO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from AutoZone Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AZO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-08-31 72.05 74.24 70.77 4.00
2020-08-31 65.20 66.66 63.33 14.00
2019-08-31 62.70 63.32 62.35 13.00
NYSE:AZO Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-04 57.18
2019-02-09 54.51
2018-11-17 53.19
2018-08-25 49.59
2018-05-05 49.99
2018-02-10 48.08
2017-11-18 45.68
2017-08-26 45.05
2017-05-06 44.31
2017-02-11 43.61
2016-11-19 42.74
2016-08-27 41.52
2016-05-07 40.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if AutoZone will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess AutoZone's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AutoZone has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AutoZone performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AutoZone's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 11.1%).
Earnings and Revenue History
AutoZone's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AutoZone Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AZO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-04 11,434.08 1,452.27 3,985.54
2019-02-09 11,311.22 1,413.05 3,918.29
2018-11-17 11,273.68 1,407.94 3,871.95
2018-08-25 11,221.08 1,337.54 3,839.39
2018-05-05 11,174.91 1,371.15 3,799.59
2018-02-10 11,133.77 1,336.13 3,771.19
2017-11-18 11,009.96 1,283.75 3,714.01
2017-08-26 10,888.68 1,280.87 3,659.55
2017-05-06 10,774.84 1,273.74 3,604.44
2017-02-11 10,749.51 1,269.55 3,589.67
2016-11-19 10,717.48 1,261.02 3,576.04
2016-08-27 10,635.68 1,241.01 3,548.34
2016-05-07 10,527.31 1,215.38 3,515.24
2016-02-13 10,426.66 1,196.93 3,469.99
2015-11-21 10,313.12 1,180.04 3,420.82
2015-08-29 10,187.34 1,160.24 3,373.98
2015-05-09 9,946.63 1,132.77 3,280.72
2015-02-14 9,795.16 1,108.86 3,229.88
2014-11-22 9,642.00 1,089.97 3,170.81
2014-08-30 9,475.31 1,069.74 3,104.68
2014-05-10 9,521.03 1,067.27 3,108.77
2014-02-15 9,385.36 1,047.70 3,057.45
2013-11-23 9,250.07 1,031.12 3,002.16
2013-08-31 9,147.53 1,016.48 2,967.84
2013-05-04 8,815.70 969.01 2,872.02
2013-02-09 8,721.69 952.02 2,847.89
2012-11-17 8,670.56 942.70 2,829.04
2012-08-25 8,603.86 930.37 2,803.15

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • AutoZone used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • AutoZone's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AutoZone's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AutoZone has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AutoZone's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AutoZone's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of AutoZone's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • AutoZone has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AutoZone Company Filings, last reported 1 month ago.

NYSE:AZO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-04 -1,589.51 5,151.92 218.06
2019-02-09 -1,594.36 5,111.20 247.23
2018-11-17 -1,658.62 5,156.04 309.28
2018-08-25 -1,520.36 5,058.22 277.27
2018-05-05 -1,361.60 4,954.70 245.28
2018-02-10 -1,330.55 5,043.54 320.46
2017-11-18 -1,525.10 4,982.98 300.71
2017-08-26 -1,428.38 5,129.37 311.84
2017-05-06 -1,714.21 5,304.80 244.24
2017-02-11 -1,827.44 5,301.66 221.51
2016-11-19 -1,895.23 4,997.45 206.06
2016-08-27 -1,787.54 4,968.95 197.06
2016-05-07 -1,863.28 4,953.70 219.99
2016-02-13 -1,741.31 4,845.22 210.36
2015-11-21 -1,778.12 4,754.10 175.93
2015-08-29 -1,701.39 4,665.40 184.10
2015-05-09 -1,643.25 4,533.33 167.38
2015-02-14 -1,468.68 4,574.10 156.41
2014-11-22 -1,662.81 4,547.00 129.43
2014-08-30 -1,621.86 4,359.61 134.89
2014-05-10 -1,808.23 4,484.61 163.07
2014-02-15 -1,710.26 4,428.91 158.79
2013-11-23 -1,721.22 4,276.66 143.61
2013-08-31 -1,687.32 4,293.17 158.60
2013-05-04 -1,532.34 4,105.81 155.21
2013-02-09 -1,550.11 4,097.18 130.58
2012-11-17 -1,591.37 3,903.85 118.98
2012-08-25 -1,548.03 3,870.44 125.61
  • 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%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.1x coverage).
X
Financial health checks
We assess AutoZone's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AutoZone has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from AutoZone dividends. Estimated to be 0% next year.
If you bought $2,000 of AutoZone shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AZO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AZO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-08-31 0.00 3.00
2020-08-31 0.00 5.00
2019-08-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of AutoZone's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess AutoZone's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AutoZone afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AutoZone has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Rhodes
COMPENSATION $4,220,619
AGE 53
TENURE AS CEO 14.3 years
CEO Bio

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 Operations and Commercial at Autozone Inc. from October 2004 until March 14, 2005. Mr. Rhodes served as Senior Vice President, Information Technology of Autozone Inc. from 2002 to October 2004 and served as its Senior Vice President, Supply Chain from 2001 to October 2004. He served in various capacities within AutoZone, including Vice President of Mid-South Stores in 2000, Senior Vice President of Finance and Vice President of Finance in 1999 and Vice President, Operations Analysis and Support from 1997 to 1999. He has been employed by AutoZone since 1994. Prior to that, Mr. Rhodes was a manager with Ernst & Young, LLP. He has been the Chairman of AutoZone Inc. since June 6, 2007 and its Director since March 16, 2005. He served as the Chairman of the Board at Retail Industry Leaders Association and serves as its Director. He has been a Director of Dollar General Corporation since 2009. Mr. Rhodes serves on several community and industry board; Memphis Tomorrow, Partners Board of the FedEx Institute of Technology and the National Civil Rights Museum (Treasurer). He was a Board Member of the Greater Memphis Arts Council, the Mid South Junior Golf Association and Christ Methodist Day School. Mr. Rhodes is a graduate of University of Tennessee at Martin with an accounting degree. He also earned a master of business administration degree from University of Memphis. Mr. Rhodes is a certified public accountant (inactive). Mr. Rhodes has 20 plus years' experience which included responsibility for corporate strategy, executive management, operations, finance, supply chain and information technology; his knowledge and understanding of the automotive aftermarket and retail industries.

CEO Compensation
  • Bill's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Bill's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AutoZone management team in years:

6.4
Average Tenure
54
Average Age
  • The average tenure for the AutoZone management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bill Rhodes

TITLE
Chairman
COMPENSATION
$4M
AGE
53
TENURE
14.3 yrs

Bill Giles

TITLE
CFO and Executive VP of Finance
COMPENSATION
$3M
AGE
59
TENURE
13.1 yrs

Mark Finestone

TITLE
Executive Vice President of Merchandising
COMPENSATION
$2M
AGE
57
TENURE
3.7 yrs

Tom Newbern

TITLE
Executive Vice President of Store Operations
COMPENSATION
$2M
AGE
56
TENURE
12.4 yrs

Ron Griffin

TITLE
Senior VP & Chief Information Officer
COMPENSATION
$2M
AGE
64
TENURE
7 yrs

Brian Campbell

TITLE
Vice President of Tax

Kristen Wright

TITLE
Senior VP
AGE
42
TENURE
5.4 yrs

Rick Smith

TITLE
Senior Vice President of Human Resources
AGE
54
TENURE
3.5 yrs

Bill Hackney

TITLE
Senior Vice President of Merchandising
AGE
53
TENURE
3.7 yrs

Al Saltiel

TITLE
Senior Vice President of Marketing & E-Commerce
AGE
54
TENURE
6.4 yrs
Board of Directors Tenure

Average tenure and age of the AutoZone board of directors in years:

8.5
Average Tenure
60
Average Age
  • The tenure for the AutoZone board of directors is about average.
Board of Directors

Bill Rhodes

TITLE
Chairman
COMPENSATION
$4M
AGE
53
TENURE
12 yrs

Andy McKenna

TITLE
Director
COMPENSATION
$240K
AGE
72
TENURE
19.4 yrs

Butch Graves

TITLE
Lead Director
COMPENSATION
$260K
AGE
56
TENURE
10.4 yrs

George Mrkonic

TITLE
Director
COMPENSATION
$248K
AGE
66
TENURE
13 yrs

Luis Nieto

TITLE
Director
COMPENSATION
$226K
AGE
62
TENURE
10.8 yrs

Enderson Guimaraes

TITLE
Director
COMPENSATION
$215K
AGE
59
TENURE
6.7 yrs

Linda Goodspeed

TITLE
Director
COMPENSATION
$227K
AGE
56
TENURE
6.3 yrs

Doug Brooks

TITLE
Director
COMPENSATION
$214K
AGE
65
TENURE
5.8 yrs

D. Jordan

TITLE
Director
COMPENSATION
$227K
AGE
56
TENURE
5.8 yrs

Gale King

TITLE
Director
COMPENSATION
$136K
AGE
61
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • AutoZone insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. May 19 Sell William Hackney Individual 22. May 19 22. May 19 -217 $1,037.95 $-225,301
22. Mar 19 Sell Thomas Newbern Individual 21. Mar 19 21. Mar 19 -7,500 $998.39 $-7,469,390
X
Management checks
We assess AutoZone's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AutoZone has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should We Worry About AutoZone, Inc.'s (NYSE:AZO) P/E Ratio?

View our latest analysis for AutoZone How Do I Calculate AutoZone's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for AutoZone: P/E of 19.66 = $1124.36 ÷ $57.18 (Based on the trailing twelve months to May 2019.) Is A High Price-to-Earnings Ratio Good? … The Verdict On AutoZone's P/E Ratio AutoZone trades on a P/E ratio of 19.7, which is above the US market average of 17.6.

Simply Wall St -

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

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.58k $1.48k $1.50k $1.53k $1.56k $1.59k $1.63k $1.67k $1.71k $1.75k Growth Rate Estimate Source Analyst x5 Analyst x7 Analyst x2 Est @ 1.63% Est @ 1.96% Est @ 2.19% Est @ 2.35% Est @ 2.47% Est @ 2.55% Est @ 2.6% Present Value ($, Millions) Discounted @ 8.59% $1.46k $1.26k $1.17k $1.10k $1.03k $969.38 $913.68 $862.12 $814.11 $769.18 Present Value of 10-year Cash Flow (PVCF)= $10.34b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. … NYSE:AZO Intrinsic value, May 31st 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Should AutoZone (NYSE:AZO) Be Disappointed With Their 81% Profit?

To wit, the AutoZone share price has climbed 81% in five years, easily topping the market return of 42% (ignoring dividends). … During five years of share price growth, AutoZone achieved compound earnings per share (EPS) growth of 12% per year. … This EPS growth is remarkably close to the 13% average annual increase in the share price.

Simply Wall St -

Is AutoZone, Inc. (NYSE:AZO) Overpaying Its CEO?

This analysis aims first to contrast CEO compensation with other large companies. … And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. … How Does Bill Rhodes's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Have Insiders Been Selling AutoZone, Inc. (NYSE:AZO) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … Thomas Newbern was the only individual insider to sell shares in the last twelve months

Simply Wall St -

Why We Like AutoZone, Inc.’s (NYSE:AZO) 53% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Despite Its High P/E Ratio, Is AutoZone, Inc. (NYSE:AZO) Still Undervalued?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use AutoZone, Inc.'s (NYSE:AZO) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

At US$827, Is It Time To Put AutoZone, Inc. (NYSE:AZO) On Your Watch List?

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

Calculating The Fair Value Of AutoZone, Inc. (NYSE:AZO)

by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Are Insiders Selling AutoZone Inc (NYSE:AZO) Stock?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single sale by an insider was when Chairman William Rhodes sold US$19m worth of shares at a price of US$703 per share. … That means that even when the share price was below the current price of US$809, an insider wanted to cash in some shares.

Simply Wall St -

Company Info

Description

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, carburetors, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps. The company also offers maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers, as well as air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, and wash and wax products. In addition, it provides a sales program that offers commercial credit and delivery of parts and other products; and tire repair services. Further, it sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. As of May 4, 2019, it operated 5,686 stores in the United States, the District of Columbia, and Puerto Rico; 576 stores in Mexico; and 25 stores in Brazil. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee.

Details
Name: AutoZone, Inc.
AZO
Exchange: NYSE
Founded: 1979
$27,619,321,830
24,528,705
Website: http://www.autozone.com
Address: AutoZone, Inc.
123 South Front Street,
Memphis,
Tennessee, 38103,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AZO Common Stock New York Stock Exchange US USD 02. Apr 1991
DB AZ5 Common Stock Deutsche Boerse AG DE EUR 02. Apr 1991
LSE 0HJL Common Stock London Stock Exchange GB USD 02. Apr 1991
WBAG AZO Common Stock Wiener Boerse AG AT EUR 02. Apr 1991
BMV AZO * Common Stock Bolsa Mexicana de Valores MX MXN 02. Apr 1991
BOVESPA AZOI34 BDR EACH REP 0.05 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
72,450
AutoZone employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:33
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/06/07
Last earnings reported: 2019/05/04
Last annual earnings reported: 2018/08/25


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.