NYSE:AZO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven 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

-0.4%

AZO

1.3%

US Specialty Retail

0.07%

US Market


1 Year Return

49.8%

AZO

8.0%

US Specialty Retail

8.9%

US Market

Return vs Industry: AZO exceeded the US Specialty Retail industry which returned 8% over the past year.

Return vs Market: AZO exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

AZOIndustryMarket
7 Day-0.4%1.3%0.07%
30 Day-5.1%5.0%-0.3%
90 Day-6.2%3.3%-1.6%
1 Year49.8%49.8%9.8%8.0%11.3%8.9%
3 Year46.6%46.6%44.6%37.1%46.3%36.8%
5 Year100.1%100.1%55.9%42.6%62.1%44.3%

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?

16.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AZO ($1100.11) is trading above our estimate of fair value ($1007.16)

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


Price To Earnings Ratio

PE vs Industry: AZO is poor value based on its PE Ratio (17x) compared to the Specialty Retail industry average (15.7x).

PE vs Market: AZO is good value based on its PE Ratio (17x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AZO is poor value based on its PEG Ratio (16.2x)


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 21 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZO's forecast earnings growth (1% per year) is below the savings rate (2.7%).

Earnings vs Market: AZO's earnings (1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AZO's revenue (3.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AZO's revenue (3.5% 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?

6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AZO's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: AZO's earnings growth over the past year (20.5%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: AZO earnings growth over the past year (20.5%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

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


Return on Assets

ROA vs Industry: AZO has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: AZO's Return on Capital Employed has declined over the past 3 years.


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 (40.9%).

Interest Coverage: AZO's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

Inventory Level: AZO has a high level of physical assets or inventory.

Debt Coverage by Assets: AZO 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 vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

6.5yrs

Average management tenure


CEO

Bill Rhodes (54yo)

14.6yrs

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

Compensation vs. Market: Bill's total compensation ($USD4.22M) is below average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

6.5yrs

Average Tenure

55yo

Average Age

Experienced Management: AZO's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

61yo

Average Age

Experienced Board: AZO's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 14.6yrs
    • Compensation: US$4.22m
  • Bill Giles (60yo)

    CFO and Executive VP of Finance

    • Tenure: 13.4yrs
    • Compensation: US$2.51m
  • Bill Hackney (54yo)

    Senior Vice President of Merchandising

    • Tenure: 4yrs
  • Charlie Pleas (54yo)

    Senior VP & Controller

    • Tenure: 0yrs
  • Ron Griffin (65yo)

    Senior VP & Chief Information Officer

    • Tenure: 7.3yrs
    • Compensation: US$1.84m
  • Tom Newbern (57yo)

    Executive Vice President of Store Operations

    • Tenure: 12.8yrs
    • Compensation: US$2.05m
  • Mark Finestone (58yo)

    Executive Vice President of Merchandising

    • Tenure: 4yrs
    • Compensation: US$2.10m
  • Kristen Wright (43yo)

    Senior VP

    • Tenure: 5.8yrs
  • Rick Smith (55yo)

    Senior Vice President of Human Resources & Customer Satisfaction

    • Tenure: 3.8yrs
  • Brian Campbell

    Vice President of Tax

    • Tenure: 0yrs

Board Members

  • Bill Rhodes (54yo)

    Chairman

    • Tenure: 14.6yrs
    • Compensation: US$4.22m
  • George Mrkonic (67yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$247.50k
  • Doug Brooks (66yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$213.75k
  • Luis Nieto (63yo)

    Director

    • Tenure: 11.1yrs
    • Compensation: US$225.62k
  • Linda Goodspeed (57yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$227.50k
  • Andy McKenna (73yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$240.00k
  • D. Jordan (57yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$227.50k
  • Butch Graves (57yo)

    Lead Director

    • Tenure: 10.8yrs
    • Compensation: US$260.00k
  • Enderson Guimaraes (60yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$215.00k
  • Gale King (62yo)

    Director

    • Tenure: 1.4yrs
    • 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$26.444b
  • Shares outstanding: 24.04m
  • 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 Analysis2019/10/22 23:31
End of Day Share Price2019/10/22 00:00
Earnings2019/08/31
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.