AutoZone (AZO) AI Stock Analysis

• Market Cap: $58.38B
• Dividend Yield: N/A
• Average Volume (3M): 145.07K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.37
• Revenue Growth: 5.15%
• EPS Growth: 1.99%
• Country: US
• Employees: 75,600
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Specialty Retail
• EPS (TTM): 35.36
• Shares Outstanding: 16,728,714
• 10 Day Avg. Volume: 161,879
• 30 Day Avg. Volume: 145,068
• PEG Ratio: -25.42
• Price to Book (P/B): -15.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.89
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 7.14
• Enterprise Value/Ebitda: 4.03
• 1Y Price Target: $4,177.50
• Price Target Upside: 18.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 68 Neutral
• Price Target: $3,900.00 ▲(10.72%Upside)

AutoZone's strong financial performance and strategic initiatives drive a positive outlook, despite technical weaknesses and valuation concerns. The company's focus on growth, both domestically and internationally, coupled with experienced board appointments, positions it well for future success, though high leverage and liquidity issues remain areas to watch.

Positive Factors

Growth Potential

DIY and DIFM trends accelerated, indicating strong growth potential for AutoZone.

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.

Negative Factors

Currency Headwinds

Currency headwinds impacted financial results, posing a challenge for future earnings.

Foreign Exchange

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

Margin Pressures

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 makes money primarily through the sale of automotive parts and accessories. The company's revenue model is centered around its vast network of retail stores where it sells products directly to consumers and professional installers. Key revenue streams include the sale of replacement parts, maintenance items, and automotive accessories. Additionally, AutoZone generates income through its commercial sales programs, which provide professional repair shops with parts and products. The company benefits from strategic partnerships with manufacturers and suppliers, ensuring a consistent supply of high-demand items. Factors such as brand recognition, extensive product offerings, and a reliable distribution network further contribute to AutoZone's financial performance.

AutoZone Financial Statement Overview

Summary

AutoZone exhibits strong revenue growth and profitability, supported by effective cost management. However, the high leverage and declining free cash flow present potential risks. The company should focus on improving liquidity and managing debt levels to ensure sustainable growth.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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	4.98B	4.35B	3.97B	3.71B	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	11.87B	12.37B	10.93B	9.20B	8.23B	8.31B
Total Liabilities	21.75B	21.93B	19.63B	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: Negative
• Last Price: 3522.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 3522.25 is below the 20-day moving average (MA) of 3662.17, below the 50-day MA of 3692.06, and above the 200-day MA of 3402.68, indicating a neutral trend. The MACD of -43.93 indicates Positive momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 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
TSCO	78 Outperform	$27.99B	26.26	49.62%	1.74%	2.07%	-2.13%
CVNA	71 Outperform	$67.62B	107.30	44.39%	―	32.23%	-46.86%
ORLY	70 Outperform	$75.09B	32.43	-174.09%	―	4.90%	3.28%
GPC	69 Neutral	$16.54B	19.57	19.19%	3.46%	1.99%	-32.18%
AZO	68 Neutral	$58.38B	23.84	-14.95%	―	5.15%	1.99%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
AAP	55 Neutral	$2.80B	59.62	-23.77%	2.14%	-16.55%	-941.57%

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.

The most recent analyst rating on (AZO) stock is a Buy with a $3200.00 price target. To see the full list of analyst forecasts on AutoZone stock, see the AZO Stock Forecast page.

AutoZone Appoints New Board Member Claire McDonough

On April 21, 2025, AutoZone appointed Claire Rauh McDonough, the CFO of Rivian Automotive, to its Board of Directors, where she will serve on the Audit and Compensation Committees. This strategic appointment adds valuable expertise to AutoZone’s board, enhancing its decision-making capabilities and potentially strengthening its market position.