AutoZone (AZO) AI Stock Analysis

• Market Cap: $63.66B
• Dividend Yield: N/A
• Average Volume (3M): 140.03K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.33
• Revenue Growth: 2.43%
• EPS Growth: -3.34%
• Country: US
• Employees: 75,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 48.71
• Shares Outstanding: 16,728,714
• 10 Day Avg. Volume: 124,740
• 30 Day Avg. Volume: 140,031
• 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: 1.32
• Enterprise Value/Revenue: 4.42
• Enterprise Value/Gross Profit: 8.40
• Enterprise Value/Ebitda: 19.83
• 1Y Price Target: $4,645.53
• Price Target Upside: 21.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 58 Neutral
• Price Target: $3,967.00 ▲(4.01% Upside)

AutoZone's overall stock score is driven by strong sales growth and strategic expansion, but is tempered by financial challenges such as high leverage, negative equity, and a high P/E ratio. Technical indicators suggest bearish momentum, and while the earnings call highlighted positive sales trends, financial pressures remain a concern.

Positive Factors

Strong Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Record Store Openings

Expanding store count enhances market presence and accessibility, driving future revenue growth and strengthening competitive positioning.

Market Share Gains

Increasing market share reflects competitive advantages and customer loyalty, which are crucial for sustaining long-term growth and profitability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Declining Free Cash Flow

Reduced free cash flow may constrain the company's ability to fund operations and investments, affecting long-term growth prospects and resilience.

SG&A Expense Growth

Rising SG&A expenses can pressure margins and profitability, necessitating better cost management to sustain financial health over time.

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 generates revenue primarily through the sale of automotive parts and accessories. The company has two main revenue streams: retail and commercial. The retail segment caters to DIY customers, where sales are driven by a wide selection of parts and accessories, coupled with customer service experiences like in-store diagnostics and advice. The commercial segment, on the other hand, focuses on professional mechanics and businesses, providing bulk sales, delivery services, and specialized accounts. AutoZone also benefits from its proprietary private-label products, which typically yield higher margins. Additionally, the company has established strategic partnerships with various suppliers and manufacturers, enhancing its supply chain and product offerings. Seasonal promotions, loyalty programs, and an expanding online presence further contribute to its earnings through increased customer engagement and sales.

AutoZone Financial Statement Overview

Summary

AutoZone demonstrates strong revenue growth and operational efficiency, but faces challenges with high leverage and negative equity. While cash flow generation is stable, the decline in free cash flow growth is a concern. The company needs to address its balance sheet risks to enhance financial stability.

Income Statement

AutoZone's income statement shows strong revenue growth of 19.8% over the past year, indicating robust demand. However, there is a slight decline in profitability margins, with the net profit margin decreasing from 14.4% to 13.2%. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, which poses a significant risk. The return on equity is also negative, indicating challenges in generating returns for shareholders. However, the company has substantial total assets, which could provide some stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is stable, suggesting consistent cash generation relative to earnings. The free cash flow to net income ratio remains healthy, indicating efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	18.94B	18.94B	18.49B	11.86B	11.22B	10.89B
Gross Profit	9.97B	9.97B	9.82B	6.37B	5.97B	5.74B
EBITDA	4.22B	4.22B	4.35B	2.59B	2.48B	2.40B
Net Income	2.50B	2.50B	2.66B	1.62B	1.34B	1.28B
Balance Sheet
Total Assets	19.36B	19.36B	17.18B	9.90B	9.35B	9.26B
Cash, Cash Equivalents and Short-Term Investments	271.80M	271.80M	298.17M	176.30M	217.82M	293.27M
Total Debt	12.29B	12.29B	12.37B	5.26B	5.06B	5.13B
Total Liabilities	22.77B	22.77B	21.93B	11.61B	10.87B	10.69B
Stockholders Equity	-3.41B	-3.41B	-4.75B	-1.71B	-1.52B	-1.43B
Cash Flow
Free Cash Flow	1.28B	1.79B	1.93B	1.63B	1.56B	1.02B
Operating Cash Flow	2.16B	3.12B	3.00B	2.13B	2.08B	1.57B
Investing Cash Flow	-917.26M	-1.40B	-1.29B	-491.85M	-521.86M	-553.60M
Financing Cash Flow	-1.28B	-1.75B	-1.68B	-1.67B	-1.63B	-914.33M

AutoZone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3814.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 3814.21 is below the 20-day moving average (MA) of 4049.93, below the 50-day MA of 4135.18, and above the 200-day MA of 3763.21, indicating a neutral trend. The MACD of -78.11 indicates Positive momentum. The RSI at 30.85 is Neutral, neither overbought nor oversold. The STOCH value of 21.37 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	―	$4.83B	20.92	17.38%	―	6.76%	34.97%
LKQ	―	$7.92B	11.31	11.20%	3.90%	-3.02%	-1.02%
GPC	―	$18.21B	22.56	17.05%	3.12%	3.26%	-25.41%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ORLY	―	$82.53B	33.20	―	―	6.19%	6.98%
AZO	―	$63.66B	26.33	―	―	2.43%	-3.34%
AAP	―	$3.27B	―	-24.78%	1.78%	-22.50%	-35219.23%

AutoZone Corporate Events

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.

The most recent analyst rating on (AZO) stock is a Buy with a $4600.00 price target. To see the full list of analyst forecasts on AutoZone stock, see the AZO Stock Forecast page.

AutoZone Inc’s Earnings Call: Balancing Growth and Challenges

AutoZone Inc’s recent earnings call painted a picture of balanced achievements and challenges, resulting in a neutral sentiment. The company celebrated strong domestic and international sales growth, record store openings, and market share gains. However, these positive developments were offset by financial hurdles such as a decrease in earnings per share (EPS), currency headwinds, and increased selling, general and administrative (SG&A) expenses due to strategic investments.

AutoZone Reports Modest Sales Growth in Q4 2025

AutoZone Inc., a leading retailer and distributor of automotive replacement parts and accessories in the Americas, reported its financial results for the fourth quarter of fiscal 2025. The company operates over 7,600 stores across the U.S., Mexico, and Brazil, offering a wide range of automotive products and services.

AutoZone Announces Leadership Changes with New Appointments

On August 28, 2025, AutoZone announced the retirement of Bill Hackney, Executive Vice President, and Rick Smith, Senior Vice President, effective November 2025 and January 2026, respectively. Eric Gould and Denise McCullough have been promoted within the company, while Eric Leef joins as Senior Vice President from Hertz, enhancing AutoZone’s leadership team with their extensive experience.

The most recent analyst rating on (AZO) stock is a Buy with a $4606.00 price target. To see the full list of analyst forecasts on AutoZone stock, see the AZO Stock Forecast page.