AutoZone (AZO) AI Stock Analysis

• Market Cap: $63.58B
• Dividend Yield: N/A
• Average Volume (3M): 118.97K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.28
• Revenue Growth: 2.43%
• EPS Growth: -3.34%
• Country: US
• Employees: 75,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 16,632,664
• 10 Day Avg. Volume: 96,193
• 30 Day Avg. Volume: 118,970
• 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: 1.33
• Enterprise Value/Revenue: 4.46
• Enterprise Value/Gross Profit: 8.47
• Enterprise Value/Ebitda: 19.99
• 1Y Price Target: $4,630.89
• Price Target Upside: 21.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $4,090.00 ▲(6.99% Upside)

AutoZone's overall stock score reflects strong revenue growth and strategic expansion efforts, balanced by financial challenges such as high leverage and negative equity. The company's valuation is moderate, and recent corporate actions like the share repurchase program enhance shareholder value. However, technical indicators suggest caution, and the mixed sentiment from the earnings call highlights both opportunities and risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and stability.

Market Expansion

Record store openings demonstrate strategic market expansion, enhancing distribution capabilities and customer reach, crucial for sustained growth.

Share Repurchase Program

The expanded share repurchase program reflects strong capital allocation and commitment to enhancing shareholder value, indicating financial confidence.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may constrain future investments and operational flexibility, affecting the company's ability to fund growth initiatives.

Profitability Margin Decline

Decreasing profitability margins can pressure earnings and limit reinvestment capacity, challenging the company's ability to sustain competitive advantages.

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 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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.94B	18.94B	18.49B	17.46B	16.25B	14.63B
Gross Profit	9.97B	9.97B	9.82B	9.07B	8.47B	7.72B
EBITDA	4.22B	4.22B	4.35B	3.98B	3.72B	3.36B
Net Income	2.50B	2.50B	2.66B	2.53B	2.43B	2.17B
Balance Sheet
Total Assets	19.36B	19.36B	17.18B	15.99B	15.28B	14.52B
Cash, Cash Equivalents and Short-Term Investments	271.80M	271.80M	298.17M	277.05M	264.38M	1.17B
Total Debt	12.18B	12.18B	12.37B	10.93B	9.30B	8.23B
Total Liabilities	22.77B	22.77B	21.93B	20.34B	18.81B	16.31B
Stockholders Equity	-3.41B	-3.41B	-4.75B	-4.35B	-3.54B	-1.80B
Cash Flow
Free Cash Flow	1.79B	1.79B	1.93B	2.14B	2.54B	2.90B
Operating Cash Flow	3.12B	3.12B	3.00B	2.94B	3.21B	3.52B
Investing Cash Flow	-1.40B	-1.40B	-1.29B	-876.18M	-648.10M	-601.78M
Financing Cash Flow	-1.75B	-1.75B	-1.68B	-2.06B	-3.47B	-3.50B

AutoZone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3822.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 3822.66 is below the 20-day moving average (MA) of 3844.43, below the 50-day MA of 3916.77, and below the 200-day MA of 3824.76, indicating a bearish trend. The MACD of -2.23 indicates Negative momentum. The RSI at 45.82 is Neutral, neither overbought nor oversold. The STOCH value of 18.57 is Positive, 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	15.76	18.19%	―	7.94%	34.84%
LKQ	65 Neutral	$7.54B	10.93	10.87%	4.07%	-3.71%	-0.27%
SMP	65 Neutral	$802.75M	11.88	10.49%	3.40%	23.96%	11.01%
AZO	64 Neutral	$63.58B	26.38	―	―	2.43%	-3.34%
BWA	64 Neutral	$9.26B	69.38	2.24%	1.29%	0.08%	-83.69%
ORLY	63 Neutral	$83.47B	34.26	―	―	6.19%	6.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.