AutoZone (AZO) AI Stock Analysis

• Market Cap: $67.10B
• Dividend Yield: N/A
• Average Volume (3M): 130.43K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.35
• Revenue Growth: 5.15%
• EPS Growth: 1.99%
• Country: US
• Employees: 75,600
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Specialty Retail
• EPS (TTM): 35.36
• Shares Outstanding: 16,728,714
• 10 Day Avg. Volume: 128,351
• 30 Day Avg. Volume: 130,433
• PEG Ratio: 1.64
• Price to Book (P/B): -11.59
• Price to Sales (P/S): 2.98
• P/FCF Ratio: 28.51
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $4,192.44
• Price Target Upside: 4.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 73 Outperform
• Price Target: $4,141.00 ▲(3.23% Upside)

AutoZone's strong revenue growth and strategic investments in expansion are key strengths, contributing to a positive outlook. However, challenges such as high leverage, declining free cash flow, and foreign exchange headwinds slightly temper the optimism. Overall, the company is well-positioned for long-term growth if it can manage these risks effectively.

Positive Factors

International Expansion

AutoZone Inc's international expansion sees robust momentum with consistent growth trends across Mexico and Brazil.

Market Share

AutoZone Inc is gaining market share in the fragmented DIFM space by leveraging ongoing megahub rollout and improving parts availability.

Sales Growth

Strong sales growth is accompanied by temporary margin pressures.

Negative Factors

Currency Headwinds

Currency headwinds impacted financial results, posing a challenge for future earnings.

Margin Pressures

Margins are pressured by non-cash LIFO and FX headwinds and elevated investments in growth initiatives.

Profitability

Gross margin contracted due to higher inventory shrink, higher commercial mix, new DC startup costs and LIFO impact.

AutoZone Business Overview & Revenue Model

Company 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, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company 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, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it provides 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, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; 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 November 20, 2021, it operated 6,066 stores in the United States; 666 stores in Mexico; and 53 stores in Brazil. The company was founded in 1979 and is based in Memphis, Tennessee.

How the Company Makes Money

AutoZone makes money primarily through the sale of automotive parts and accessories. The company's revenue model is centered around its vast network of retail stores where it sells products directly to consumers and professional installers. Key revenue streams include the sale of replacement parts, maintenance items, and automotive accessories. Additionally, AutoZone generates income through its commercial sales programs, which provide professional repair shops with parts and products. The company benefits from strategic partnerships with manufacturers and suppliers, ensuring a consistent supply of high-demand items. Factors such as brand recognition, extensive product offerings, and a reliable distribution network further contribute to AutoZone's financial performance.

AutoZone Financial Statement Overview

Summary

AutoZone demonstrates strong revenue growth and profitability, with a robust profit margin. However, high leverage and declining free cash flow present potential risks, necessitating improvements in liquidity and debt management.

Income Statement

AutoZone shows robust revenue growth with a TTM increase in revenue of 2.22% compared to the previous year. The gross profit margin is strong at 52.94%, and the net profit margin is healthy at 13.56%. However, a slight decrease in EBIT margin from 20.49% to 19.63% indicates a need to control operational costs better. Overall, the company demonstrates consistent profitability and revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, which poses a financial risk. However, the equity ratio is negative, reflecting high leverage. Despite these concerns, the company has been able to maintain profitability, suggesting effective use of leverage to generate returns.

Cash Flow

The cash flow statement indicates a decline in free cash flow by about 62.53% in the TTM, impacting liquidity. However, the operating cash flow to net income ratio of 0.42 reflects adequate cash generation relative to profits. The free cash flow to net income ratio is 0.28, which is below optimal levels, suggesting room for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.90B	18.49B	17.46B	16.25B	14.63B	12.63B
Gross Profit	10.01B	9.82B	9.07B	8.47B	7.72B	6.77B
EBITDA	4.98B	4.35B	3.97B	3.71B	3.36B	2.82B
Net Income	2.56B	2.66B	2.53B	2.43B	2.17B	1.73B
Balance Sheet
Total Assets	18.62B	17.18B	15.99B	15.28B	14.52B	14.42B
Cash, Cash Equivalents and Short-Term Investments	268.63M	298.17M	277.05M	264.38M	1.17B	1.75B
Total Debt	11.87B	12.37B	10.93B	9.30B	8.23B	8.31B
Total Liabilities	21.75B	21.93B	20.34B	18.81B	16.31B	15.30B
Stockholders Equity	-3.97B	-4.75B	-4.35B	-3.54B	-1.80B	-877.98M
Cash Flow
Free Cash Flow	2.00B	1.93B	2.14B	2.54B	2.90B	2.26B
Operating Cash Flow	3.23B	3.00B	2.94B	3.21B	3.52B	2.72B
Investing Cash Flow	-1.29B	-1.29B	-876.18M	-648.10M	-601.78M	-497.88M
Financing Cash Flow	-1.94B	-1.68B	-2.06B	-3.47B	-3.50B	-643.64M

AutoZone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4011.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZO, the sentiment is Positive. The current price of 4011.25 is above the 20-day moving average (MA) of 3787.41, above the 50-day MA of 3725.72, and above the 200-day MA of 3492.55, indicating a bullish trend. The MACD of 60.05 indicates Negative momentum. The RSI at 67.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZO.

AutoZone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSCO	79 Outperform	$31.69B	29.37	45.34%	1.56%	2.96%	-2.02%
CVNA	78 Outperform	$75.48B	88.86	49.91%	―	39.48%	-34.00%
AZO	73 Outperform	$67.10B	27.56	-14.95%	―	5.15%	1.99%
ORLY	70 Outperform	$87.39B	37.34	-174.09%	―	5.15%	5.33%
Sector *	67 Neutral	¥265.08B	13.26	6.55%	2.53%	5.21%	-14.31%
GPC	66 Neutral	$18.44B	22.84	17.50%	3.16%	2.65%	-32.91%
AAP	46 Neutral	$3.42B	59.62	-23.77%	1.90%	-16.55%	-941.57%

AutoZone Corporate Events

AutoZone Appoints Constantino Spas Montesinos to Board

On May 28, 2025, AutoZone announced the appointment of Constantino Spas Montesinos to its Board of Directors. Mr. Spas, who is the CEO of Proximity Americas and Mobility Division at FEMSA, brings extensive international and industry experience to AutoZone. His appointment is expected to enhance board discussions and drive exceptional performance for the company, which now has 11 board members.

The most recent analyst rating on (AZO) stock is a Buy with a $3200.00 price target. To see the full list of analyst forecasts on AutoZone stock, see the AZO Stock Forecast page.