AutoZone (AZO)
Consumer Discretionary · $48.5B market cap · SEC CIK 0000866787
fundamentals score out of 100
Next reports on Dec 7, 2026, with analysts expecting $38.10 in earnings per share.
The case for AZO
- Earns 12% a year on everything it owns (return on assets).
- Moves less than the market (beta 0.38).
The case against
- Down 32.3% over the past year.
- Owes more than it owns: shareholder equity is -$3.2B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Current liabilities exceed current assets (ratio 0.89).
- Near the bottom of its 52-week range, 33% below the high. Falling prices usually have a reason; find it first.
- Long-term debt of $8.6B against $288M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 56 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 46 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 54 |
| Momentumhow the price has behaved lately | 17 |
| Stabilityhow violently it moves, what it owes and what it pays you | 48 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 19.6× |
|---|---|
| Price / book | n/m (negative equity) |
| Price / sales | 2.4× |
| Revenue growth (YoY) | +5.7% |
| EPS growth (YoY) | -1.7% |
| Gross margin | 52% |
| Operating margin | 18% |
| Net margin | 12% |
| Return on assets | 12.3% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 0.89 |
| Dividend yield | none |
| Beta | 0.38 |
| 52-week range | $2,797 – $4,333 |
| Position in that range | 6% of the way up |
| 3-month return | -8.5% |
| 1-year return | -32.3% |
Five years of financials, as filed
Pulled from AutoZone's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $18.9B | $18.5B | $17.5B | $16.3B | $14.6B |
| Gross profit | $10.0B | $9.8B | $9.1B | $8.5B | $7.7B |
| Operating income | $3.6B | $3.8B | $3.5B | $3.3B | $2.9B |
| Net income | $2.5B | $2.7B | $2.5B | $2.4B | $2.2B |
| Operating cash flow | $3.1B | $3.0B | $2.9B | $3.2B | $3.5B |
| Capital expenditure | $1.3B | $1.1B | $797M | $672M | $622M |
| Total assets | $19.7B | $17.5B | $16.7B | $15.5B | $14.5B |
| Shareholder equity | -$3.2B | -$4.7B | -$4.8B | -$4.2B | -$2.1B |
| Cash | $288M | $304M | $304M | $301M | $961M |
| Long-term debt | $8.6B | $9.0B | $8.6B | $7.0B | $4.8B |
| Free cash flow | $1.8B | $1.9B | $2.1B | $2.5B | $2.9B |
| Gross margin | 52.6% | 53.1% | 52.0% | 52.1% | 52.8% |
| Operating margin | 19.1% | 20.5% | 19.9% | 20.1% | 20.1% |
| Net margin | 13.2% | 14.4% | 14.5% | 14.9% | 14.8% |
| Diluted shares | 17.2M | 17.8M | 19.1M | 20.7M | 22.8M |
Share count is down 24.4% over 4 years. Buybacks have been shrinking the pie.
What AutoZone says it does
" above for additional information regarding our competitive environment. ​ Although we believe we compete effectively, our competitors may have greater financial resources allowing them to invest more in their business, greater sourcing capabilities allowing them to sell merchandise at lower prices, larger stores with more merchandise, longer operating histories with deeper customer relationships, more frequent customer visits, more effective advertising and more successful utilization of data analytics, artificial intelligence and other new and emerging technologies. Online and multi-channel retailers often have lower operating costs and focus on delivery services, thereby offering customers faster, guaranteed delivery times and low-price or free shipping. In addition, because our business strategy is based on offering superior levels of customer service to complement the products we offer, our cost structure is higher than…
Risk factors AZO lists in its 10-K
- The current global economic and geopolitical landscape has increased uncertainty about key areas of doing business internationally and may have a negative impact on our business
- If demand for our products slows, then our business may be materially adversely affected
- If we are unable to compete successfully against other businesses that sell the products that we sell, we could lose customers and our sales and profits may decline
- We may not be able to sustain our historic rate of sales growth
- If we cannot profitably increase our market share in the commercial auto parts business, our sales growth may be limited
- Our business depends upon hiring, training and retaining qualified employees, including members of management and other key personnel
- Inability to acquire and provide quality merchandise at competitive prices could materially adversely affect our sales and results of operations
- We are subject to risks associated with products sourced outside the U.S
- Disruptions in our supply chain and other factors affecting the distribution of our merchandise could adversely impact our business
- Our success in international operations is dependent on our ability to manage the unique challenges presented by international markets
- Business interruptions may negatively impact our operating hours, operability of our computer and other systems, availability of merchandise and otherwise have a material adverse effect on our sales and our business
- Our failure to protect our brand and reputation could have an adverse effect on our relationships with our customers, AutoZoners, suppliers, vendors and other stakeholders, thereby negatively impacting sales and profitability
- We are self-insured for certain costs associated with our operations and an increase in our insurance claims and expenses may have a material negative impact on us
- A downgrade in our credit ratings or a general disruption in the credit markets could make it more difficult for us to access funds, refinance our debt, obtain new funding or issue debt securities