AZO

AUTOZONE INC

Consumer DiscretionaryCIK 0000866787

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Market Cap
$58.09B
P/E (TTM)
23.4x
Rev Growth (TTM)
+5.7%
Net Margin (TTM)
12.4%
FCF Yield (TTM)
2.8%
FCF Margin (TTM)
8.2%

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LATEST EARNINGS

Q2 FY2026
4 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.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.6B
Q3 '26
$456M+1181%
Q2 '26
$36M-94%
FCF Margin
TTM8.2%
Q3 '269.4%+1031%
Sector: 2.3%Top 25%
OCF Margin15.4%
OCF/NI1.24x
CapEx Coverage2.1x
FCF Yield2.8%
FCF Growth (2Y)-12%
Cash Conversion Cycle
-297 days
DSO: 12+DIO: 0DPO: 310

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.0%
Div Yield0.0%
+
Buyback (TTM)3.0%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.6B
Stock Repurchases (TTM)$1.8B
Capital Return / FCF108.1%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
29.7%
Moderate
-0.1% YoY-17.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.3%
8Q: 15.1%
Asset Turnover
1.01x
8Q: 0.96x
Leverage (1+D/E)
-2.24x
D/E: -3.24x
DuPont: -32.2%29.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
2.75x
8Q:2.65x
-97.5%
Invested Cap Turn
2.08x
8Q:2.03x
-81.3%
CapEx Intensity
15.0%
8Q:14.0%
CapEx/Depreciation
2.18x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
23.4x
Volatile
8Q: 96.8x+3486%
Multiple expansion without fundamental improvement
High PEG ratio (4.1x) suggests expensive for growth
Valuation Lenses
Earnings
23.4x
vs sector
Cash Flow
40.8x
EV/FCF vs
Growth-Adj
4.1xPEG
Expensive for growth
Quality-Adj
0.8P/E per %ROIC
ROIC: 29.7%
Shareholder Returns
Dividend
Buyback
3.0%
Total Yield
3.0%
Market Cap$58.09B
EV$66.63B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
-1/100
Below Average

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

Returns on Capital

Return on Equity (ROE)Top 10%
-76.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
29.7%
8Q:
-17.2%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.3%
Asset Turnover: 1.01x

Earnings Quality

Cash Conversion

1.24x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin51.8%

Capital Efficiency

Invested Capital Turnover2.08x

Working Capital

Cash Conversion Cycle-297 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
50/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.7%
OpInc Growth YoY
6.6%
EPS Growth YoY
-1.6%
FCF 3Y CAGR
-11.6%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 17.4%
Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
51.8%
Operating
18.0%
Top 25% in sector
Net
12.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-4.2 pts
FCF: 8.2% | Net: 12.4%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
Net Debt: $8.76B
Interest Coverage
Leverage Metrics
Debt-to-Equity
-3.24x
Balance sheet risk & solvency analysis