AutoZone (AZO)
NYSE:AZO
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AutoZone
(NYSE:AZO)
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Rating:55Neutral
Price Target:
$3,471.00
▼(-2.84% Downside)
Action:ReiteratedDate:03/26/26
The score is anchored by strong profitability and solid cash generation, but is held back by an aggressive balance-sheet structure (high debt and negative equity) and a clear technical downtrend. Valuation is also less supportive at ~33x earnings, while the latest earnings call was moderately positive on strategy and growth initiatives but flagged notable near-term margin/EPS pressure from recurring LIFO charges and softer free-cash-flow timing.
Positive Factors
High Profitability
AutoZone's sustained high gross and operating margins reflect durable pricing power, favorable product mix and operational efficiency. Those margin levels generate persistent operating income that supports reinvestment, shareholder returns and resilience to cost or demand fluctuations over months.
Negative Factors
Elevated Leverage
High absolute debt combined with persistent negative equity materially increases financial risk and reduces flexibility. This capital structure can constrain ability to fund downturns or pursue opportunistic investments, raise refinancing or covenant sensitivity, and limit strategic optionality over ensuing quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
AutoZone's sustained high gross and operating margins reflect durable pricing power, favorable product mix and operational efficiency. Those margin levels generate persistent operating income that supports reinvestment, shareholder returns and resilience to cost or demand fluctuations over months.
Read all positive factors
AutoZone (AZO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.95B
Dividend YieldN/A
Average Volume (3M)141.43K
Price to Earnings (P/E)34.3
Beta (1Y)0.33
Revenue Growth5.02%
EPS Growth-4.34%
CountryUS
Employees130,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)27.63
Shares Outstanding16,476,820
10 Day Avg. Volume176,554
30 Day Avg. Volume141,432
Financial Highlights & Ratios
PEG Ratio-8.65
Price to Book (P/B)-20.65
Price to Sales (P/S)3.72
P/FCF Ratio39.38
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue3.61
Enterprise Value/Gross Profit6.97
Enterprise Value/Ebitda16.91
Forecast
1Y Price Target
$4,232.42Price Target Upside18.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)148.84
Revenue Forecast (FY)$20.51B
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 ...
How the Company Makes Money
AutoZone primarily makes money by selling automotive replacement parts and maintenance products through two main customer channels: (1) DIY retail customers who purchase parts and supplies for self-repair, and (2) professional customers (commercia...
AutoZone Key Performance Indicators (KPIs)
Any
Store Count by Geography
Shows the distribution of stores across different regions, highlighting market penetration, regional growth opportunities, and potential exposure to local economic conditions.
Shows the distribution of stores across different regions, highlighting market penetration, regional growth opportunities, and potential exposure to local economic conditions.
Data provided by:
The Fly
The FlyAutoZone Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call highlights healthy top-line growth, accelerating store expansion, strong commercial momentum, FX tailwinds, and disciplined long-term investments that are already delivering share gains and improved productivity. Key near-term negatives are sizeable non-cash LIFO charges materially depressing reported margins and EPS, a notable decline in quarterly free cash flow (timing and higher CapEx), traffic weakness, and SG&A deleverage as investments ramp. Management emphasized adjusted earnings growth, confidence in the investment payoff, and expectations for recovery in transactions and margins as stores mature, leading to a generally constructive outlook despite identifiable near-term accounting and timing headwinds.Positive Updates
Top-Line Revenue Growth
Total sales of $4.3 billion, up 8.1% year-over-year; total company same store sales +3.3% on a constant currency basis.
Negative Updates
Material LIFO Charges Impacting Margins and EPS
Non-cash LIFO charge of $59M in Q2 materially depressed gross margin and EPS; company expects roughly $60M LIFO charge in each remaining quarter (total estimated LIFO this year ~$277M vs $64M prior year), with Q3 LIFO estimated to reduce EPS by ~$2.75 and gross margin ~125 bps.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Revenue Growth
Total sales of $4.3 billion, up 8.1% year-over-year; total company same store sales +3.3% on a constant currency basis.
Read all positive updates
Company Guidance
AutoZone guided that Q3 will absorb a roughly $60 million non‑cash LIFO charge (they expect ~ $60M LIFO each remaining quarter, ~$277M for FY‑26 vs $64M last year), which management said would reduce EBIT by about $60M, compress gross margin ~125 basis points and lower EPS by ~$2.75; conversely, if current FX holds they expect ~+$75M to revenue, ~+$20M to EBIT and ~+$0.85 to EPS in Q3, and they suggested modeling a Q3 tax rate of ~22.9% and interest expense near $112M (vs $111M last year). Other guideposts: Q3 net new store openings of ~90–95 (350–360 for FY vs 304 last year), FY CapEx of nearly $1.6B (and similar next year), continued expectation that average ticket growth will run sequentially through Q3 and peak in Q4, and the company reiterated strong liquidity/leverage (~2.5x EBITDAR) and ~$1.4B remaining on its buyback authorization after $311M repurchased in Q2.AutoZone Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.61B | 18.94B | 18.49B | 17.46B | 16.25B | 14.63B |
| Gross Profit | 10.17B | 9.97B | 9.82B | 9.07B | 8.47B | 7.72B |
| EBITDA | 4.19B | 4.22B | 4.35B | 3.98B | 3.72B | 3.36B |
| Net Income | 2.45B | 2.50B | 2.66B | 2.53B | 2.43B | 2.17B |
Balance Sheet | ||||||
| Total Assets | 20.44B | 19.36B | 17.18B | 15.99B | 15.28B | 14.52B |
| Cash, Cash Equivalents and Short-Term Investments | 313.98M | 271.80M | 298.17M | 277.05M | 264.38M | 1.17B |
| Total Debt | 12.41B | 12.29B | 12.37B | 10.93B | 9.30B | 8.23B |
| Total Liabilities | 23.35B | 22.77B | 21.93B | 20.34B | 18.81B | 16.31B |
| Stockholders Equity | -2.91B | -3.41B | -4.75B | -4.35B | -3.54B | -1.80B |
Cash Flow | ||||||
| Free Cash Flow | 1.60B | 1.79B | 1.93B | 2.14B | 2.54B | 2.90B |
| Operating Cash Flow | 3.04B | 3.12B | 3.00B | 2.94B | 3.21B | 3.52B |
| Investing Cash Flow | -1.50B | -1.40B | -1.29B | -876.18M | -648.10M | -601.78M |
| Financing Cash Flow | -1.56B | -1.75B | -1.68B | -2.06B | -3.47B | -3.50B |
AutoZone Technical Analysis
Neutral
3572.38
Price Trends
3574.16
Negative
3581.88
Negative
3777.07
Negative
Market Momentum
-2.52
Negative
55.55
Neutral
75.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZO, the sentiment is Neutral. The current price of 3572.38 is above the 20-day moving average (MA) of 3425.90, below the 50-day MA of 3574.16, and below the 200-day MA of 3777.07, indicating a neutral trend. The MACD of -2.52 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 75.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AZO.
AutoZone Risk Analysis
AutoZone disclosed 22 risk factors in its most recent earnings report. AutoZone reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AutoZone Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.06B | 12.73 | 9.42% | 4.00% | -3.06% | -10.07% | |
65 Neutral | $3.35B | 18.56 | 14.34% | ― | 6.03% | 8.26% | |
62 Neutral | $11.60B | 35.20 | 4.80% | 1.24% | 1.65% | -14.51% | |
62 Neutral | $77.92B | 30.60 | -239.04% | ― | 6.42% | 9.32% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $58.95B | 34.26 | -72.31% | ― | 5.02% | -4.34% | |
53 Neutral | $854.83M | 10.25 | 11.76% | 3.32% | 22.36% | 49.18% |
* Consumer Cyclical Sector Average
AZO
AutoZone
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.