|AZO Overview
AZO

AUTOZONE INC

Consumer Discretionary • CIK: 0000866787

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Market Cap
$65.21B
P/E (TTM)
26.5x
Rev Growth (TTM)
+3.8%
Net Margin (TTM)
12.8%
FCF Yield (TTM)
2.8%
FCF Margin (TTM)
9.6%

LATEST EARNINGS

Q1 FY2026
2 months ago
View source
Revenue
Net Income
EPS
  • Total company net sales increased 8.2% to $4.6 billion.
  • Domestic same store sales increased 4.8%.
  • International same store sales increased 11.2% (3.7% in constant currency).
  • Opened 53 net new stores globally, with plans for aggressive expansion.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.9B
Q1 '26
$630M+23%
Q4 '26
$511M+21%
FCF Margin
TTM9.6%
Q1 '2613.6%+66%
Sector: 4.9%Top 25%
OCF Margin16.8%
OCF/NI1.32x
CapEx Coverage2.3x
FCF Yield2.8%
FCF Growth (2Y)-10%
Cash Conversion Cycle
-301 days
DSO: 12+DIO: 0DPO: 312

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.2%
Div Yield0.0%
+
Buyback (TTM)2.2%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.9B
Stock Repurchases (TTM)$1.5B
Capital Return / FCF79.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
32.2%
Moderate
-0.2% YoY-7.5%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.7%
8Q: 15.4%
Asset Turnover
1.03x
8Q: 0.98x
Leverage (1+D/E)
-1.67x
D/E: -2.67x
DuPont: -25.5%32.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
2.86x
8Q:2.73x
-7.0%
Invested Cap Turn
2.19x
8Q:2.09x
-13.6%
CapEx Intensity
15.8%
8Q:14.0%
CapEx/Depreciation
2.22x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2026Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024
Revenue
$19.3B
$4.6B25.9%
$6.2B39.8%
$4.5B13.0%
$4.0B7.7%
$4.3B31.0%
$6.2B46.5%
$4.2B9.8%
$3.9B
Operating Income
$3.6B
$784.2M34.4%
$1.2B38.1%
$866.2M22.6%
$706.8M16.0%
$841.1M35.1%
$1.3B44.0%
$900.2M21.1%
$743.2M
Net Income
$2.5B
$530.8M36.6%
$837.0M37.6%
$608.4M24.7%
$487.9M13.6%
$564.9M37.4%
$902.2M38.4%
$651.7M26.5%
$515.0M
Operating Cash Flow
$3.2B
$944.2M0.9%
$952.8M23.9%
$769.0M31.7%
$583.7M28.1%
$811.8M24.1%
$1.1B59.9%
$669.5M54.2%
$434.1M
Free Cash Flow
$1.9B
$630.0M23.3%
$511.1M20.8%
$423.1M45.4%
$291.0M48.5%
$564.8M21.9%
$723.5M66.6%
$434.4M143.0%
$178.7M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.5x
Volatile
8Q: 91.5x+3349%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
26.5x
vs sector
Cash Flow
38.0x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
0.8P/E per %ROIC
ROIC: 32.2%
Shareholder Returns
Dividend
Buyback
2.2%
Total Yield
2.2%
Market Cap$65.21B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
17/100
Below Average

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

Returns on Capital

Return on Equity (ROE)Bottom 25%
-62.4%
8Q:
Return on Invested Capital (ROIC)Top 25%
32.2%
8Q:
-7.5%
vs Sector:0.2%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.7%
Asset Turnover: 1.03x

Earnings Quality

Cash Conversion

1.32x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin52.1%

Capital Efficiency

Invested Capital Turnover2.19x

Working Capital

Cash Conversion Cycle-301 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
49/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
3.8%
OpInc Growth YoY
-6.8%
EPS Growth YoY
-4.1%
FCF 3Y CAGR
-10.0%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 13.8%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
52.1%
Operating
18.4%
Top 25% in sector
Net
12.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-3.2 pts
FCF: 9.6% | Net: 12.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
Net Debt: $8.31B
Interest Coverage
Leverage Metrics
Debt-to-Equity
-2.67x
Balance sheet risk & solvency analysis