AutoZone (AZO) AI Stock Analysis

• Market Cap: $69.93B
• Dividend Yield: N/A
• Average Volume (3M): 109.67K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.35
• Revenue Growth: 5.15%
• EPS Growth: 1.99%
• Country: US
• Employees: 75,600
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Specialty Retail
• EPS (TTM): 35.36
• Shares Outstanding: 16,728,714
• 10 Day Avg. Volume: 104,915
• 30 Day Avg. Volume: 109,675
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $4,187.00
• Price Target Upside: 0.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $4,606.00 ▲(10.19% Upside)

AutoZone's strong financial performance and technical momentum are the primary drivers of its score. The company's strategic expansion and robust sales growth further support its positive outlook. However, high leverage and valuation concerns, along with foreign exchange challenges, present risks that temper the overall score.

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.

Financial Results

Foreign exchange and gross margin pressures are leading to negative revisions for AutoZone.

Gross Margin

Gross margin and SG&A/store uptick are seen as pinch points affecting current performance.

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 profitability, with a robust gross profit margin and healthy net profit margin. However, the high leverage and declining free cash flow present potential risks, indicating a need for improved 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	4.31B	4.35B	3.98B	3.72B	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	12.19B	12.37B	10.93B	9.30B	8.23B	8.31B
Total Liabilities	22.60B	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: 4180.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4180.17 is above the 20-day moving average (MA) of 4046.92, above the 50-day MA of 3845.41, and above the 200-day MA of 3570.13, indicating a bullish trend. The MACD of 93.22 indicates Negative momentum. The RSI at 70.12 is Negative, neither overbought nor oversold. The STOCH value of 89.22 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
AZO	78 Outperform	$69.93B	28.29	-14.95%	―	5.15%	1.99%
DORM	76 Outperform	$5.00B	22.30	17.38%	―	6.76%	34.97%
GPC	72 Outperform	$19.30B	23.99	17.50%	2.90%	2.65%	-32.91%
ORLY	70 Neutral	$87.55B	36.90	-174.09%	―	5.15%	5.33%
LKQ	69 Neutral	$8.10B	11.65	11.20%	3.81%	-3.02%	-1.02%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
AAP	48 Neutral	$3.61B	59.62	-24.78%	1.65%	-22.50%	-35219.23%

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.