AZO
AutoZone
$3,059.11
▼ 0.3%Updated Aug 7, 11:30 AM ET
AZO at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 50/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 15.0% over the last 12 months
Market Cap
$51.58B
P/E
20.12x
Forward P/E (est.)
20.47x
ROE
249.3%
Revenue Growth
5.7%
EPS Growth
-1.7%
Profit Margin
12.4%
FCF Yield
5.1%
Debt / Equity
9.8x
ROIC
163.0%
Interest Coverage
11.28x
Current Ratio
0.89x
Dividend Yield
—
Implied Growth (rev. DCF)
5.3%
Rating Score
50/100
AutoZone (AZO) is a large-cap company in the Automotive Retail industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $51.58B.
In its latest reported year it generated about $18.94B in revenue and $2.50B in net profit.
Our model rates AZO Neutral (50/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
52.6% average over the last 3 years
±0.5 pts around 52.8% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 10 of 10 years
163.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AZO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AZO trades near $3,059.11, below its 50-day average ($3,269.31) and 200-day average ($3,595.43). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. AZO's is $93.37 (~3.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month AZO found buyers near $2,949.06 (support) and sellers near $3,239.14 (resistance); its 52-week range is $2,928.11–$4,388.11. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
6.7%
Revenue moved from $10.64B in 2016 to $18.94B in 2025, a 6.6% compound annual growth rate. The most recent year grew a steady 5.7% year over year. Slower, mature growth is common for established businesses.
Gross Margin
52.6%
Operating Margin
19.1%
Net Margin
13.2%
ROE
249.3%
AutoZone keeps about 12.4% of each sales dollar as net profit, with a 52.6% gross margin and 19.1% operating margin. Return on equity is 249.3% and return on invested capital about 163.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$4.53B
Net Debt
$4.28B
Net Debt / EBITDA
1.19x
Debt / Equity
9.8x
Leverage: debt-to-equity is 9.8x, and operating profit covers interest about 11.3x, with a current ratio of 0.9x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $4.53B of total debt against $253.73M of cash.
Operating CF
$3.12B
Free Cash Flow
$1.79B
FCF Margin
9.5%
In the latest year AutoZone produced about $3.12B of operating cash flow and $1.79B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.1% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
20.12x
P/S
2.69x
P/B
37.28x
EV / EBITDA
—
AZO trades at 20.1x trailing earnings (about 20.5x on estimated forward earnings), 2.7x sales, and 37.3x book value. Reverse-engineering today's price implies the market expects roughly 5.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$2,076.86
Current price
$3,059.11
Starting FCF (latest 10-K)
$1.79B
Growth, years 1–5
5.7%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where AZO sits versus its Consumer Discretionary sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 85 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How AZO stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (158 S&P 500 companies), AZO ranks #43 of 158 by our overall rating. It trades at a discount versus the sector on earnings (20.1x P/E vs. 25.8x median) with a higher return on equity (249.3% vs. 26.2%) and slower revenue growth (5.7% vs. 6.8%).
P/E vs sector
20.1x
median 25.8x
ROE vs sector
249.3%
median 26.2%
Growth vs sector
5.7%
median 6.8%
Sector rank
#43
of 158 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 158 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $3,059.11 today · expected CAGR -5% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $20.08B | $21.28B | $22.56B | $23.91B | $25.34B |
| Net income | $2.61B | $2.77B | $2.93B | $3.11B | $3.29B |
| EPS | $154.79 | $164.08 | $173.92 | $184.36 | $195.42 |
| Share price (low) | $1,857.49 | $1,968.93 | $2,087.07 | $2,212.29 | $2,345.03 |
| Share price (high) | $3,095.81 | $3,281.56 | $3,478.45 | $3,687.16 | $3,908.39 |
| CAGR (low–high) | -39% / 1% | -20% / 4% | -12% / 4% | -8% / 5% | -5% / 5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for AZO:
- Strong return on equity (249.3%) shows capital is put to work well.
- Healthy free-cash-flow yield (~5.1%) funds buybacks and dividends.
The case against AZO:
- Elevated leverage (debt/equity 9.8x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 9.8x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: AutoZone is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 20.1x earnings, which our model scores Neutral (50/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 31 Wall Street analysts covering AZO recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+3 pts of buy ratings).
Latest SEC Filings
AZO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
AZO — frequently asked questions
Is AZO a good stock to buy?
We don't give buy or sell advice. Our model rates AutoZone Neutral (50/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is AZO's rating on The Stocks School?
AutoZone currently scores 50/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does AZO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from AutoZone's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for AZO calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this AZO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AZO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.