AZO

AUTOZONE INC

Consumer Discretionary • CIK: 0000866787

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Market Cap
$64.35B
P/E (TTM)
26.3x
Rev Growth (TTM)
+5.0%
Net Margin (TTM)
12.5%
FCF Yield (TTM)
2.5%
FCF Margin (TTM)
8.2%

What Changed

View Full Filings
10-Q Q2 2026 vs 10-Q Q1 2026
Interest Rate Risk Added to Top-3top risks: Geopolitical and Trade Policy Uncertainty...→top risks: Geopolitical and Supply Chain Disruptions...
Accounting Red Flag Resolved1 flag: SBC expense increased by 17.6% while revenue...→0 accounting red flags
Forward Guidance Specificityno revenue or margin outlook (revenue_outlook: null,...→24-week net sales +8.2% YoY to $8.9B; 24-week gross...
Critical Liability Finding Resolvedvarious legal proceedings cited: wage and hour...→no critical findings
Total Debt Increased$8.67B total debt, nearest maturity 2026→$8.91B total debt, nearest maturity 2026 (+$240M,...

Gross margin trajectory: Q2 2026 LIFO charge compressed gross margin 138bp vs...·Debt maturity profile: $8.91B outstanding with nearest maturity in 2026 —...·ROIC trend: management's top concern shifted to ROIC compression — watch next...

LATEST EARNINGS

•
Q2 FY2026
•
3 months ago
•View source
Revenue
$4.27B
+8.1%
Net Income
$468.86M
-3.9%
EPS
$27.63
-2.3%
Gross
52.5%↓ -1.3%
Operating
16.3%↓ -1.5%
Net
11.0%↓ -1.4%
  • •Total company net sales increased 8.1% to $4.3 billion.
  • •Domestic same store sales increased 3.4% for the quarter and 4.2% year-to-date.
  • •Commercial sales increased 9.8% for the quarter and year-to-date.
  • •Opened 64 net new stores globally in the quarter, in line with expectations to open approximately 350-360 stores for the full fiscal year.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.6B
Q2 '26
$36M-94%
Q1 '26
$630M+23%
FCF Margin
TTM8.2%
Q2 '260.8%-94%
Sector: 2.3%Top 25%
OCF Margin15.5%
OCF/NI1.24x
CapEx Coverage2.1x
FCF Yield2.5%
FCF Growth (2Y)-14%
Cash Conversion Cycle
-300 days
DSO: 12+DIO: 0−DPO: 312
View Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.3%
Div Yield0.0%
+
Buyback (TTM)2.3%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.6B
Stock Repurchases (TTM)$1.5B
Capital Return / FCF90.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
30.7%
Moderate
-0.1% YoY-17.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.4%
8Q: 15.2%
Asset Turnover
1.02x
8Q: 0.98x
Leverage (1+D/E)
-2.06x
D/E: -3.06x
DuPont: -30.3% ≈ 30.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
2.80x
8Q:2.73x
-67.9%
Invested Cap Turn
2.14x
8Q:2.09x
-59.8%
CapEx Intensity
15.7%
8Q:14.0%
CapEx/Depreciation
2.29x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ2 2026Q1 2026Q4 2026Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024
Revenue
$19.6B
$4.3B↓7.7%
$4.6B↓25.9%
$6.2B↑39.8%
$4.5B↑13.0%
$4.0B↓7.7%
$4.3B↓31.0%
$6.2B↑46.5%
$4.2B
Operating Income
$3.5B
$698.5M↓10.9%
$784.2M↓34.4%
$1.2B↑38.1%
$866.2M↑22.6%
$706.8M↓16.0%
$841.1M↓35.1%
$1.3B↑44.0%
$900.2M
Net Income
$2.4B
$468.9M↓11.7%
$530.8M↓36.6%
$837.0M↑37.6%
$608.4M↑24.7%
$487.9M↓13.6%
$564.9M↓37.4%
$902.2M↑38.4%
$651.7M
Operating Cash Flow
$3.0B
$373.4M↓60.4%
$944.2M↓0.9%
$952.8M↑23.9%
$769.0M↑31.7%
$583.7M↓28.1%
$811.8M↓24.1%
$1.1B↑59.9%
$669.5M
Free Cash Flow
$1.6B
$35.6M↓94.3%
$630.0M↑23.3%
$511.1M↑20.8%
$423.1M↑45.4%
$291.0M↓48.5%
$564.8M↓21.9%
$723.5M↑66.6%
$434.4M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.3x
Volatile
8Q: 96.8x+5606%
Multiple expansion without fundamental improvement
High PEG ratio (5.2x) suggests expensive for growth
Valuation Lenses
Earnings
26.3x
vs – sector
Cash Flow
45.6x
EV/FCF vs –
Growth-Adj
5.2xPEG
Expensive for growth
Quality-Adj
0.9P/E per %ROIC
ROIC: 30.7%
Shareholder Returns
Dividend
–
Buyback
2.3%
Total Yield
2.3%
Market Cap$64.35B
EV$72.89B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
8/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
-68.4%
8Q:–
Return on Invested Capital (ROIC)Top 25%
30.7%
8Q:–
-17.3%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.4%
Asset Turnover: 1.02x

Earnings Quality

Cash Conversion

1.24x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin51.9%

Capital Efficiency

Invested Capital Turnover2.14x

Working Capital

Cash Conversion Cycle-300 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
48/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.0%
OpInc Growth YoY
-1.2%
EPS Growth YoY
-4.2%
FCF 3Y CAGR
-13.8%

Growth Quality Analysis

⚠Working Capital Drag: FCF growth lagging revenue by 18.8%
⚠Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
51.9%
Operating
18.1%
Top 25% in sector
Net
12.5%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-4.3 pts
FCF: 8.2% | Net: 12.5%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
–Net Debt: $8.62B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
-3.06x
Balance sheet risk & solvency analysis

Research

All research