Autozone Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Specialty Retail
As of November 23, 2024, the Company had 6,455 stores in the U.S., 800 in Mexico and 132 in Brazil for a total store count of 7,387. AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com.
Did you know?
Generated $1.3 in free cash flow for every $1 of capital expenditure in FY25.
Current Price
$3400.54
-0.76%GoodMoat Value
$3791.28
11.5% undervaluedProfile
Valuation (TTM)
Market Cap$56.34B
P/E23.04
EV$67.68B
P/B—
Shares Out16.57M
P/Sales2.87
Revenue$19.61B
EV/EBITDA16.34
Autozone Inc (AZO) Stock Analysis
GoodMoat Analysis
AutoZone is a dominant specialty retailer with a strong local network and high switching costs, indicating a durable moat. However, its valuation appears full, trading near its estimated fair value with a modest free cash flow yield, offering a limited margin of safety for a value investor.
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AutoZone operates a leading chain of retail stores and commercial sales programs for automotive replacement parts and accessories in the Americas. Applying the GoodMoat framework, the company demonstrates a strong competitive moat, likely scoring high on criteria like niche dominance in the DIY and DIFM (Do-It-For-Me) aftermarket, switching costs for its commercial customers, and a vast physical network that creates scale and convenience advantages. Its financial quality is supported by a robust 19.1% operating margin and a 12.5% profit margin. The current valuation presents a mixed picture. The P/E of 22.9x is not extreme, but the Free Cash Flow Yield of 3.2% is modest. The GoodMoat target price of $3,791.28 suggests the stock is trading at a slight discount of approximately 11% to that fair value estimate. According to the Decision Framework (Section 6), this would place it in the 'Marginal' (10-20%) band for Margin of Safety. This indicates the stock passes the initial Moat & Quality gate but enters the Valuation & Risk gate 'with caution,' as the price does not provide a significant buffer against uncertainty. For a value investor, this suggests the business is high-quality but may require a more attractive entry point to build a position with an adequate margin of safety.
Market Cap$56.34B
Current Price$3400.54
P/E Ratio23.04
Forward P/E—
PEG Ratio-8.70
EPS$144.87
Book Value$-206.08
P/B Ratio—
AZO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 11.9B
Revenue
11.9B
FY19
12.6B
FY20
14.6B
FY21
16.3B
FY22
17.5B
FY23
18.5B
FY24
18.9B
FY25
Net Income
1.6B
FY19
1.7B
FY20
2.2B
FY21
2.4B
FY22
2.5B
FY23
2.7B
FY24
2.5B
FY25
AZO 52-Week Range
$3244.92
$4354.54
50-Day MA: $3622.15200-Day MA: $3783.63
Did you know?
Profit margin stands at 12.5%.
Autozone Inc (AZO) Financial Summary
Autozone Inc (AZO) is a Consumer Cyclical company in the Specialty Retail industry, listed on NYSE. The stock currently trades at $3400.54 with a market capitalization of $56.34B.
Key valuation metrics include a P/E ratio of 23.04, and EPS of $144.87. The company reports a profit margin of 12.5%.
AZO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $56.34B |
| P/E Ratio | 23.04 |
| EPS | $144.87 |
| P/S Ratio | 2.87 |
| EV/EBITDA | 16.34 |
| Profit Margin | 12.5% |
AZO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $11.86B | $1.62B |
| FY20 | $12.63B | $1.73B |
| FY21 | $14.63B | $2.17B |
| FY22 | $16.25B | $2.43B |
| FY23 | $17.46B | $2.53B |
| FY24 | $18.49B | $2.66B |
| FY25 | $18.94B | $2.50B |
Autozone Inc (AZO) Valuation
Based on GoodMoat's DCF model, Autozone Inc has a fair value estimate of $3791.28. At the current price of $3400.54, the stock appears 10.3% undervalued relative to our intrinsic value estimate.
AZO Quality Indicators
Autozone Inc maintains a profit margin of 12.5% and an operating margin of 19.1%. The current ratio is 0.88.
About Autozone Inc
As of November 23, 2024, the Company had 6,455 stores in the U.S., 800 in Mexico and 132 in Brazil for a total store count of 7,387. AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com.
AZO Free Cash Flow
Autozone Inc generated $1.79B in trailing twelve-month free cash flow, representing an FCF yield of 3.18%. This moderate FCF yield indicates reasonable cash generation.
AZO Shares Outstanding
Autozone Inc has 0.02 billion shares outstanding at a share price of $3400.54, giving it a market capitalization of $56.34B.
AZO Recent Insider Trades
Recent insider transactions at Autozone Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Smith Richard Craig (Sr. Vice President) | SELL | 5,910 | $21.87M |
| Smith Richard Craig (Sr. Vice President) | SELL | 3,190 | $11.16M |
| GRAVES EARL G JR | SELL | 250 | $823750.00 |