Fact based stock research
Autozone (NYSE:AZO)

US0533321024

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Autozone stock research in summary

autozone.com


ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), Autozone (Automotive Retail, USA) shares have lower financial characteristics compared with similar stocks. Shares of Autozone are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives), and are riskily financed (Safety Rank of 9, which means above-average debt burdens) but show above-average growth (Growth Rank of 67). ...read more


RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on Autozone's financial characteristics. As the company Autozone shows low value with an Obermatt Value Rank of 37 (63% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 67% of comparable companies (Obermatt Growth Rank is 67). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 9 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Autozone, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more


Latest Obermatt Ranks


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360° Viewnew
Sentiment Ranknew
Value Rank 37
Growth Rank 67
Safety Rank 9
Combined Rank 14
Country USA
Industry Automotive Retail
Index
Size class XX-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.


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Research History: Autozone

RESEARCH HISTORY 2021 2022 2023 2024
VALUE
VALUE n/a
n/a
n/a
37
GROWTH
GROWTH n/a
n/a
n/a
67
SAFETY
SAFETY n/a
n/a
n/a
9
SENTIMENT
SENTIMENT n/a
n/a
n/a
new
360° VIEW
360° VIEW n/a
n/a
n/a
new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 31-Aug-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Autozone is in the corresponding investment strategy.
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Combined financial peformance in Detail

ANALYSIS: With an Obermatt Combined Rank of 14 (worse than 86% compared with investment alternatives), Autozone (Automotive Retail, USA) shares have lower financial characteristics compared with similar stocks. Shares of Autozone are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives), and are riskily financed (Safety Rank of 9, which means above-average debt burdens) but show above-average growth (Growth Rank of 67). ...read more

RECOMMENDATION: A Combined Rank of 14, is a sell recommendation based on Autozone's financial characteristics. As the company Autozone shows low value with an Obermatt Value Rank of 37 (63% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 67% of comparable companies (Obermatt Growth Rank is 67). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 9 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Autozone, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

RESEARCH HISTORY 2021 2022 2023 2024
VALUE
VALUE n/a
n/a
n/a
37
GROWTH
GROWTH n/a
n/a
n/a
67
SAFETY
SAFETY n/a
n/a
n/a
9
COMBINED
COMBINED n/a
n/a
n/a
14

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Autozone the better the performance.


Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), Autozone shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Autozone. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 97, which means that the stock price is lower compared with invested capital than for 97% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 9 which means the stock price compared with what market professionals expect for future profits is higher than 91% of comparable companies, indicating a low value concerning Autozone's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 97 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on Autozone's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Autozone, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more


VALUE METRICS 2021 2022 2023 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S) n/a
n/a
n/a
9
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E) n/a
n/a
n/a
44
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book) n/a
n/a
n/a
97
DIVIDEND YIELD
DIVIDEND YIELD n/a
n/a
n/a
1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE n/a
n/a
n/a
37

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Autozone; except for dividend yield where the rank is higher, the higher the yield.


Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), Autozone shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Autozone. Sales Growth has a rank of 75 which means that currently professionals expect the company to grow more than 75% of its competitors. Stock Returns are also above average with a rank of 73. But Capital Growth has only a rank of 44, which means that currently professionals expect the company to grow its invested capital less than 56% of its competitors. Profit Growth is also low, with a rank of only 47, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 73% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS 2021 2022 2023 2024
REVENUE GROWTH
REVENUE GROWTH n/a
n/a
n/a
75
PROFIT GROWTH
PROFIT GROWTH n/a
n/a
n/a
47
CAPITAL GROWTH
CAPITAL GROWTH n/a
n/a
n/a
44
STOCK RETURNS
STOCK RETURNS n/a
n/a
n/a
73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH n/a
n/a
n/a
67

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Autozone.


Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 9 (better than 9% compared with alternatives), the company Autozone has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Autozone is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Autozone. Liquidity is at 69, meaning the company generates more profit to service its debt than 69% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 10, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 90% of its competitors. Leverage is also high at a rank of 1, which means that the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 9 (worse than 91% compared with alternatives), Autozone has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS 2021 2022 2023 2024
LEVERAGE
LEVERAGE n/a
n/a
n/a
1
REFINANCING
REFINANCING n/a
n/a
n/a
10
LIQUIDITY
LIQUIDITY n/a
n/a
n/a
69
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY n/a
n/a
n/a
9

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Autozone and the more cash is available to service its debt.


Sentiment Metrics in Detail

SENTIMENT 2021 2022 2023 2024
ANALYST OPINIONS
ANALYST OPINIONS n/a
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n/a
new
OPINIONS CHANGE
OPINIONS CHANGE n/a
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n/a
new
PRO HOLDINGS
PRO HOLDINGS n/a
n/a
n/a
new
MARKET PULSE
MARKET PULSE n/a
n/a
n/a
new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT n/a
n/a
n/a
new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Autozone.
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Free stock analysis by the purely fact based Obermatt Method for Autozone from December 19, 2024.

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