AutoZone Inc (AZO) stock analysis
Close on Nov 11, 2026Market cap $52.11BP/E 21.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak6 of 30 checks passed
AutoZone passes 6 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 51.9%, above the 10% that usually covers the cost of capital.
Earnings grew over 5 years
Net income grew 3.5% a year on average over the last five fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 35.8% of total debt.
EV/EBITDA below its 5-year median
AutoZone's EV/EBITDA of 13.8 is below its 5-year median of 14.9.
What to watch
Margin of safety under 20%
The price is 17.4% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $3237.73 is above our fair value estimate of $2758.53.
Revenue growing under 10% a year
Revenue grew 5.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 4.8% a year over the last three fiscal years.
Valuation1/6
P/E above its 5-year median
AutoZone's P/E of 21.2 is above its own 5-year median of 20.8.
P/E above the industry
AutoZone's P/E of 21.2 is above the Automotive Dealers and Gasoline Service Stations median of 15.6.
EV/EBITDA below its 5-year median
AutoZone's EV/EBITDA of 13.8 is below its 5-year median of 14.9.
P/S above the industry
AutoZone's price-to-sales of 2.56 is above the Automotive Dealers and Gasoline Service Stations median of 0.32 (book value is negative, so we use sales).
Trading above fair value
The share price of $3237.73 is above our fair value estimate of $2758.53.
Margin of safety under 20%
The price is 17.4% above fair value, so there is no margin of safety.
Growth1/6
Revenue growing under 10% a year
Revenue grew 5.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew 4.8% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 3.0% over the last twelve months, against a 5-year average of 3.5% a year.
Growing faster than the industry
Revenue grew 7.4% over the last twelve months; the Automotive Dealers and Gasoline Service Stations median is 4.4%.
Guidance issued
The latest outlook (full fiscal year new stores, May 26, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin slipping
Gross margin was 52.3% over the last twelve months, against 52.6% a year earlier.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 51.9%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings grew over 5 years
Net income grew 3.5% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 12.6% over the last twelve months, against a 5-year average of 13.9%.
Net margin above the industry
AutoZone's net margin of 12.6% is above the Automotive Dealers and Gasoline Service Stations median of -1.9%.
Financial health1/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 35.8% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.90 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.57; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
AutoZone has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$2,758.53
The share price is 17% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 18.3× | 20.8× | 15.6× | $2,784.37 | 44% |
| EV/EBITDA | 13.1× | 14.9× | 11.2× | $3,035.01 | 39% |
| Earnings power | 7.6% cost of equity | – | – | $2,044.53 | 17% |
| Fair value | $2,758.53 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 20.8
- Automotive Dealers and Gasoline Service Stations median 15.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $545.28M
- Value traded per 1% price move
- $484.30M
Downside
Medium risk
- Typical loss in a bad month
- 15.1%
- Volatility (annualized)
- 30%
- Sharpe ratio, 1 year
- -0.58
- Beta to the S&P 500 (5Y)
- 0.55
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +7.4% | +5.2% | +6.8% | +6.7% | |
| Gross profit | +6.8% | +5.5% | +6.6% | +6.6% | |
| Operating income | +3.1% | +2.3% | +4.8% | +6.1% | |
| Net income | +3.0% | +0.6% | +3.5% | +7.6% | |
| EPS, diluted | +5.3% | +4.8% | +9.9% | +14.1% | |
| Free cash flow | +1.4% | -5.4% | -8.9% | +4.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -79.7% | -162.2% | -87.0% | |
| Return on assets | 14.3% | 15.0% | 12.6% | |
| Current ratio | 0.97 | 0.87 | 0.90 | |
| Debt to equity | -3.56 | -2.93 | -3.63 | |
| Net debt to EBITDA | 1.99× | 1.22× | 1.99× | |
| Interest coverage | 13.1× | 14.6× | 7.6× | |
| Capex to revenue | 5.1% | 4.3% | 7.0% | |
| Diluted shares | 29M | 23M | 17M |
Where the cash went
Fiscal 2022 to 2026, five years combined
AutoZone generated $15.52B from operations and spent $20.09B on capital expenditure, dividends and share buybacks. 26% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 12.6% | 0.99× | -6.93× | -87.0% |
| FY2025 | 13.2% | 1.04× | -4.47× | -61.2% |
| FY2024 | 14.4% | 1.12× | -3.64× | -58.5% |
| FY2023 | 14.5% | 1.12× | -3.96× | -64.1% |
| FY2022 | 14.9% | 1.09× | -5.58× | -91.1% |
| FY2021 | 14.8% | 1.01× | -10.82× | -162.2% |
| FY2020 | 13.7% | 1.04× | -9.38× | -133.7% |
| FY2019 | 13.6% | 1.23× | -5.95× | -100.0% |
| FY2018 | 11.9% | 1.21× | -6.31× | -90.7% |
| FY2017 | 11.8% | 1.22× | -5.55× | -79.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$2.57B
- Cash generatingOperating cash flow above zero$3.25B
- Return on assets improvedROA up on the prior year14.5% → 13.3%
- Earnings backed by cashOperating cash flow above net income$3.25B vs $2.57B
- Less leverageLong-term debt to assets fell45.5% → 42.0%
- Better liquidityCurrent ratio rose0.88 → 0.90
- No dilutionShare count did not rise17M → 17M
- Gross margin improvedGross margin up on the prior year52.62% → 52.34%
- More efficientAsset turnover rose1.10 → 1.05
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