NYSE:AZO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record and slightly overvalued.


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

Stable Share Price: AZO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

AZO

4.0%

US Specialty Retail

1.9%

US Market


1 Year Return

8.6%

AZO

14.2%

US Specialty Retail

16.4%

US Market

Return vs Industry: AZO underperformed the US Specialty Retail industry which returned 13.4% over the past year.

Return vs Market: AZO underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

AZOIndustryMarket
7 Day-2.1%4.0%1.9%
30 Day6.2%12.8%4.5%
90 Day12.2%25.4%17.6%
1 Year8.6%8.6%15.4%14.2%18.9%16.4%
3 Year121.4%121.4%63.6%56.5%44.1%34.8%
5 Year59.5%59.5%32.1%22.0%75.3%56.3%

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 compared to its fair value and its price relative to the market?

18.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AZO ($1182.22) is trading above our estimate of fair value ($1105.18)

Significantly Below Fair Value: AZO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AZO is good value based on its PE Ratio (18x) compared to the US Specialty Retail industry average (19x).

PE vs Market: AZO is good value based on its PE Ratio (18x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AZO is poor value based on its PEG Ratio (3.3x)


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.


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZO's forecast earnings growth (5.5% per year) is above the savings rate (2.2%).

Earnings vs Market: AZO's earnings (5.5% per year) are forecast to grow slower than the US market (23.1% per year).

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

Revenue vs Market: AZO's revenue (4.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AZO's revenue (4.1% 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


Next Steps

Past Performance

How has AutoZone performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZO has high quality earnings.

Growing Profit Margin: AZO's current net profit margins (12.9%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: AZO's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: AZO's earnings growth over the past year (6.7%) is below its 5-year average (7% per year).

Earnings vs Industry: AZO earnings growth over the past year (6.7%) exceeded the Specialty Retail industry -23.3%.


Return on Equity

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


Next Steps

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 (39.6%).

Interest Coverage: AZO's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Next Steps

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?

7.1yrs

Average management tenure


CEO

Bill Rhodes (55 yo)

15.42yrs

Tenure

US$8,617,562

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 ($USD8.62M) is about average for companies of similar size in the US market ($USD11.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Rhodes
Chairman15.42yrsUS$8.62m0.18%
$ 49.3m
William Giles
CFO and Executive VP of Finance14.25yrsUS$3.14m0.040%
$ 11.2m
Ronald Griffin
Senior VP8.17yrsUS$2.01m0.0020%
$ 544.0k
Mark Finestone
Executive Vice President of Merchandising4.83yrsUS$2.86m0.019%
$ 5.1m
Thomas Newbern
Executive VP of Store Operations13.58yrsUS$2.86m0.014%
$ 3.8m
Brian Campbell
Vice President of Taxno datano datano data
Kristen Wright
Senior VP6.58yrsno data0.0011%
$ 292.7k
Richard Smith
Senior VP of Human Resources & Customer Satisfaction4.67yrsno data0.013%
$ 3.6m
William Hackney
Senior VP of Merchandising & Customer Satisfaction4.83yrsno data0.0037%
$ 1.0m
Albert Saltiel
Senior VP of Marketing7.58yrsno data0.00071%
$ 196.1k
Philip Daniele
Senior Vice President4.83yrsno data0.0011%
$ 306.5k
Domingo José Rodríguez
Senior VP of International & Customer Satisfactionno datano datano data

7.1yrs

Average Tenure

56yo

Average Age

Experienced Management: AZO's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Rhodes
Chairman15.42yrsUS$8.62m0.18%
$ 49.3m
George Mrkonic
Independent Director14.17yrsUS$247.50k0.016%
$ 4.3m
Douglas Brooks
Independent Director7yrsUS$214.99k0.0033%
$ 911.3k
Linda Goodspeed
Independent Director7.5yrsUS$227.49kno data
D. Jordan
Independent Director7yrsUS$227.49k0.0010%
$ 284.4k
Earl Graves
Lead Independent Director11.58yrsUS$259.99kno data
Michael Calbert
Independent Director1.25yrsUS$141.48k0.010%
$ 2.8m
Jill Soltau
Independent Director2.25yrsUS$236.24kno data
Enderson Guimaraes
Independent Director7.83yrsUS$214.99kno data
Gale King
Independent Director2.25yrsUS$214.99kno data

7.3yrs

Average Tenure

58yo

Average Age

Experienced Board: AZO's board of directors are considered experienced (7.3 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 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$27.616b
  • Shares outstanding: 23.36m
  • 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
AZ5ETLX (Eurotlx)YesCommon StockITEURApr 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 Analysis2020/08/09 23:50
End of Day Share Price2020/08/07 00:00
Earnings2020/05/09
Annual Earnings2019/08/31


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.