AutoZone (AZO) AI Stock Analysis

• Market Cap: $56.42B
• Dividend Yield: N/A
• Average Volume (3M): 151.19K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.30
• Revenue Growth: 3.81%
• EPS Growth: -4.26%
• Country: US
• Employees: 75,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 31.04
• Shares Outstanding: 16,567,822
• 10 Day Avg. Volume: 246,195
• 30 Day Avg. Volume: 151,192
• PEG Ratio: -8.65
• Price to Book (P/B): -20.65
• Price to Sales (P/S): 3.72
• P/FCF Ratio: 39.38
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.61
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 16.67
• 1Y Price Target: $4,439.22
• Price Target Upside: 30.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $3,613.00 ▲(5.83% Upside)

AutoZone's overall stock score reflects a mix of strong financial performance and strategic growth initiatives, balanced by high leverage and technical weaknesses. The company's robust sales growth and international expansion are positive, but the high debt levels and bearish technical indicators present risks. The valuation suggests the stock may be overvalued, and the absence of a dividend yield limits its appeal to income investors.

Positive Factors

International Expansion

The expansion into international markets enhances AutoZone's growth potential and diversifies its revenue streams, reducing reliance on domestic sales.

Commercial Sales Growth

Strong growth in commercial sales indicates successful penetration into the professional market, supporting long-term revenue growth and market position.

Cash Flow Generation

Improved free cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns without compromising liquidity.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially affecting AutoZone's ability to invest in growth and weather economic downturns.

Earnings Per Share Decline

A decline in EPS, even if non-cash related, reflects potential challenges in maintaining profitability, impacting investor confidence and valuation.

Operating Expenses Increase

Rising operating expenses can pressure margins and profitability, necessitating careful cost management to sustain long-term financial health.

AutoZone Business Overview & Revenue Model

Company Description

AutoZone, Inc. is a leading retailer and distributor of automotive replacement parts and accessories in the United States. Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates over 6,000 stores across the country, catering to both do-it-yourself (DIY) customers and professional installers. The company offers a wide array of products, including automotive batteries, brake parts, filters, and engine components, as well as various tools and accessories, supporting customers in maintaining and repairing their vehicles.

How the Company Makes Money

AutoZone primarily generates revenue through the sale of automotive parts, accessories, and maintenance supplies. The company's revenue model is built on two key segments: retail sales to individual consumers and commercial sales to professional mechanics and repair shops. Retail sales typically contribute the majority of the revenue, driven by the extensive range of products available in-store and online. The commercial segment, although smaller, has been growing steadily as AutoZone focuses on building relationships with local businesses through delivery services and dedicated sales representatives. Additionally, the company's online platform enhances convenience for customers, allowing for increased sales through e-commerce. AutoZone also benefits from a loyalty program that encourages repeat purchases. The company's strong supply chain and distribution network, along with strategic partnerships with suppliers and manufacturers, further contribute to its profitability.

AutoZone Financial Statement Overview

Summary

AutoZone's financial performance is characterized by strong revenue growth and operational efficiency, as evidenced by healthy margins. However, the high debt levels and negative equity present significant financial risk. The company has shown resilience in cash flow generation, but the leverage remains a concern that could impact future financial flexibility.

Income Statement

AutoZone has demonstrated consistent revenue growth, with a TTM growth rate of 1.84%. The gross profit margin remains strong at 52.15%, indicating effective cost management. However, the net profit margin has slightly decreased to 12.78% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins are healthy, suggesting robust operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to negative equity, which poses a risk. Despite this, the company maintains a strong asset base. The return on equity is negative, reflecting the impact of high leverage and negative equity on profitability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 3.64% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is stable, suggesting efficient cash conversion. However, the free cash flow to net income ratio has slightly decreased, indicating potential pressure on cash flow relative to earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.94B	18.49B	17.46B	16.25B	14.63B
Gross Profit	9.97B	9.82B	9.07B	8.47B	7.72B
EBITDA	4.22B	4.35B	3.98B	3.72B	3.36B
Net Income	2.50B	2.66B	2.53B	2.43B	2.17B
Balance Sheet
Total Assets	19.36B	17.18B	15.99B	15.28B	14.52B
Cash, Cash Equivalents and Short-Term Investments	271.80M	298.17M	277.05M	264.38M	1.17B
Total Debt	12.29B	12.37B	10.93B	9.30B	8.23B
Total Liabilities	22.77B	21.93B	20.34B	18.81B	16.31B
Stockholders Equity	-3.41B	-4.75B	-4.35B	-3.54B	-1.80B
Cash Flow
Free Cash Flow	1.79B	1.93B	2.14B	2.54B	2.90B
Operating Cash Flow	3.12B	3.00B	2.94B	3.21B	3.52B
Investing Cash Flow	-1.40B	-1.29B	-876.18M	-648.10M	-601.78M
Financing Cash Flow	-1.75B	-1.68B	-2.06B	-3.47B	-3.50B

AutoZone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3413.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZO, the sentiment is Negative. The current price of 3413.81 is below the 20-day moving average (MA) of 3655.68, below the 50-day MA of 3763.22, and below the 200-day MA of 3824.10, indicating a bearish trend. The MACD of -122.57 indicates Positive momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 23.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZO.

AutoZone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DORM	75 Outperform	$3.87B	15.57	18.19%	―	7.94%	34.84%
LKQ	68 Neutral	$7.61B	11.04	10.87%	3.97%	-3.71%	-0.27%
ORLY	66 Neutral	$76.81B	31.78	―	―	6.19%	6.98%
BWA	65 Neutral	$9.63B	72.15	2.24%	1.24%	0.08%	-83.69%
SMP	65 Neutral	$838.17M	12.40	10.49%	3.25%	23.96%	11.01%
AZO	63 Neutral	$56.42B	23.81	―	―	3.81%	-4.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

AutoZone Corporate Events

AutoZone Shareholders Reelect Board and Approve Key Proposals

At its annual meeting of shareholders held on December 17, 2025, AutoZone shareholders elected 11 directors to serve until the 2026 annual meeting, with each nominee receiving more votes for than against, signaling continued investor support for the company’s current board composition and strategic direction. Shareholders also ratified Ernst & Young LLP as the independent auditor for the 2026 fiscal year and approved, on a non-binding advisory basis, the compensation of the company’s named executive officers, reinforcing confidence in AutoZone’s financial oversight and executive pay practices.

AutoZone Boosts Share Repurchase Program by $1.5 Billion

On October 8, 2025, AutoZone‘s Board of Directors approved the transition of William C. Rhodes, III from Executive Chairman to Chairman, effective January 2026, with compensation adjusted to standard non-employee director policies and an annual $250,000 in restricted stock units. Additionally, the Board authorized an extra $1.5 billion for its share repurchase program, bringing the total authorization since 1998 to $40.7 billion, reflecting the company’s strong capital allocation strategy and commitment to shareholder value.