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AutoZone (AZO) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Auto Parts
C
AverageMetricSide Score: 50/100
ProfitabilityProfit20/30
GrowthGrowth9/25
Balance SheetBalance8/25
Cash QualityCash13/20
Price & Volume
Market Cap $52.03B

AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company offers a product line for cars, sport utility vehicles, vans, and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also provides A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic, repair, collision, and shop management information software under the ALLDATA brand through alldata.com; Duralast branded products through duralastparts.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.

Moat Signals

Competitive analysis based on 66 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~18.7% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

Limited ROE data for a reliable assessment.

Cash Generation

Moderate Moat

8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~8.1% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 66 quarters

Low Risk

Margin Pressure

Watch

Operating margins declined 8.1% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Shares decreased 2.8% — net buybacks are reducing shares outstanding and boosting per-share value.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$19.99B
5.7%
Q. Revenue
$4.84B
TTM EBITDA
$4.26B
0.9%
TTM Op. Income
$3.60B
2.9%
Q. Op. Income
$923.76M
TTM Net Income
$2.48B
3.3%
Q. Net Income
$641.49M
EPS
$38.95
Shares Out.
$16.47M
1.7%
$19.99B in TTM revenue grew 5.7% YoY, reaching $4.84B last quarter. TTM EBITDA of $4.26B and TTM operating income of $3.60B shows growth is flowing through. Net income of $2.48B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
52.2%
1.1%
EBITDA Margin
22.4%
Op. Margin
19.1%
1.6%
Net Margin
13.3%
2.8%
Op. margin of 19.1% is down 0.3% YoY — costs are rising relative to revenue. Net margin at 13.3% and gross margin of 52.2% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
21.0x
P/S Ratio
2.6x
P/B Ratio
N/A
At 21.0x P/E, the stock trades in line with market averages — fairly valued. P/S of 2.6x and P/B of 0.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$20.92B
Cash
$253.73M
Long-Term Debt
$9.02B
Book Value
$-2.78B
D/E Ratio
N/A
Debt/EBITDA
8.3

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$801.99M
Free Cash Flow
$456.48M
7.9%
FCF Margin
2.3%
FCF / Net Income
0.7
FCF of $456.48M on $801.99M in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention.

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