AUTOZONE INC (AZO) Factsheet
AUTOZONE INC (AZO) Stock Analysis
Analysis from 10-Q filed 2025-12-19. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 30.7%. FCF margin 8.2%. D/E -3.1x. Source: 10-Q filed 2025-12-19.
| Metric | Value | Context |
|---|---|---|
| ROIC | 30.7% | Above industry average |
| FCF Margin | 8.2% | Healthy cash flow |
| Debt/Equity | -3.1x | Conservative leverage |
ROIC 30.7% — Top 5% of sector peers. FCF margin 8.2% — Top 25%.
Explore AUTOZONE INC: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for AZO: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: AUTOZONE INC earns 30.7% ROIC, Top 5% in Consumer Discretionary
ROIC TTM 30.7%, sector median 8.1%, Top 5%. DuPont: NOPAT margin 14.4% × asset turnover 1.0x. Gross margin 51.9%. Operating margin 18.1%. Source: 10-Q filed 2025-12-19.
| Metric | AZO | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 30.7% | Excellent | Above sector median of 8.1% |
| Return on Equity (ROE) | -68.4% | Red flag | Moderate equity returns |
| Gross Margin | 51.9% | Excellent | Strong pricing power |
| Operating Margin | 18.1% | Good | Efficient operations |
Cash Flow: AUTOZONE INC generates $1.6B FCF at 8.2% margin, positive NaN/8 quarters
FCF TTM $1.6B. FCF margin 8.2%, Top 25%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-19.
| Metric | AZO | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 8.2% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $1.6B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: AUTOZONE INC at -3.1x leverage
Debt/Equity -3.1x. Total debt $8.9B, cash & investments $285.5M. Source: 10-Q filed 2025-12-19.
| Metric | AZO | Rating | Context |
|---|---|---|---|
| Debt to Equity | -3.1x | Excellent | Conservative capital structure |
| Net Cash Position | $-8.6B | Warning | Net debt position |
Valuation: AUTOZONE INC trades at 26.3x earnings
P/E 26.3x. EV/Sales 3.7x. FCF yield 2.5%. Source: 10-Q filed 2025-12-19.
| Metric | AZO | Rating | Context |
|---|---|---|---|
| P/E Ratio | 26.3x | Adequate | Premium valuation |
| EV/Sales | 3.7x | Good | Growth premium priced in |
| FCF Yield | 2.5% | Adequate | Lower cash yield |
Capital Allocation: AUTOZONE INC returns 2.3% shareholder yield
Total shareholder yield 2.3% (buyback 2.3%). Capital returned $1.5B TTM. Source: 10-Q filed 2025-12-19.
| Metric | AZO | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.3% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 2.3% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $1.5B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 30.7% | Top 5% | 3.8x above |
| Free Cash Flow Margin | 8.2% | Top 25% | 3.7x above |
| Gross Margin | 51.9% | Top 50% | 1.3x above |
| Operating Margin | 18.1% | Top 25% | 4.3x above |
| Return on Equity (ROE) | -68.4% | Top 5% | -6.6x below |
| P/E Ratio | 26.3x | N/A | - |
Financial Scorecard
| Metric | AZO | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 30.7% | Excellent | Top 5% of sector (median: 8.1%) |
| Free Cash Flow Margin | 8.2% | Adequate | Top 25% of sector (median: 2.2%) |
| Gross Margin | 51.9% | Excellent | Top 50% of sector (median: 39.1%) |
| Debt to Equity Ratio | -306.2% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 26.3x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.5% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is AUTOZONE INC's Return on Invested Capital (ROIC)?
AUTOZONE INC (AZO) has a trailing twelve-month Return on Invested Capital (ROIC) of 30.7%. Sector median 8.1%. Source: 10-Q filed 2025-12-19.
Q: What is AUTOZONE INC's Free Cash Flow Margin?
AUTOZONE INC (AZO) has a free cash flow margin of 8.2%, generating $1.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-19.
Q: What is AUTOZONE INC's P/E ratio and how does it compare to peers?
AUTOZONE INC (AZO) trades at a P/E ratio of 26.3x, which is above the sector median of N/A. EV/Sales 3.7x. FCF yield 2.5%. Source: 10-Q filed 2025-12-19.
Q: What is AUTOZONE INC's revenue and earnings growth?
AUTOZONE INC (AZO) grew revenue by 5.0% year-over-year. EPS -4.2% YoY. Source: 10-Q filed 2025-12-19.
Q: Is AUTOZONE INC buying back stock?
AUTOZONE INC (AZO) repurchased $1.5 billion of stock over the trailing twelve months. This represents a buyback yield of 2.3%. Source: 10-Q filed 2025-12-19.
Q: How does AUTOZONE INC compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, AUTOZONE INC (AZO) shows: ROIC 30.7%, sector median 8.1% (Top 5%). FCF margin 8.2%, sector median 2.2% (Top 25%). Gross margin 51.9%, 12.8pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with AUTOZONE INC?
Quantitative warning flags for AUTOZONE INC (AZO): 1) ROIC declining -17.3% over 8 quarters. Source: 10-Q filed 2025-12-19.
Data Source: Data sourced from 10-Q filed 2025-12-19. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.