AZO

AutoZone

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Auto Parts

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/26/26

Business Summary

AutoZone operates a high-turn retail and distribution network focused on replacement auto parts, generating cash through repeat, non-discretionary demand tied to vehicle maintenance. Its moat is rooted in scale, dense store footprint, and inventory depth, allowing rapid part availability that smaller competitors struggle to match. The business converts capital efficiently, as reflected in its 30.80% ROIC, indicating strong pricing discipline and operational leverage. Cash generation is driven by consistent DIY and professional mechanic demand, creating a recurring revenue dynamic anchored in the aging vehicle base rather than new car cycles.

VALUATION

P/E

24

Market Cap ($M USD)

$56,522

Forward P/E

19.7

PEG

1.3

PRICE TO SALES

3

PRICE TO BOOK

-

EV / EBITDA

16.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$146.50

Next Year EPS Growth Estimate

$174.48

Next Year Revenue Growth Estimate

7.50%

Return on Equity (ROE)

-84.10%

Operating Margin

18.10%

Debt-to-Equity

-

Piotroski F-Score

6

Altman Z-Score

2.6

Return on Invested Capital (ROIC)

30.80%%

Current Ratio

0.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 24x earnings and 19.7x forward earnings, the market is pricing AZO as a steady compounder rather than a distressed retailer, yet the 1.3 PEG Forward suggests growth is not dramatically underpriced. The Altman Z-Score of 2.6 places the company in a gray zone—financially stable but not fortress-level—while a Piotroski F-Score of 6 signals decent but not elite fundamental momentum. With ROIC at 30.80%, capital efficiency is clearly strong, but the negative 84.10% operating margin is a jarring contradiction that cannot be ignored. This is not a deep value mispricing; it is a quality operator priced for execution perfection with moderate balance sheet risk.

AI Exposure / Tech Reliance

The auto parts industry is structurally resilient to technological shifts because vehicles require ongoing maintenance regardless of drivetrain evolution. AI-driven diagnostics and inventory optimization can enhance supply chain precision and customer targeting, which benefits scaled retailers in this space. However, AI is unlikely to be a primary growth driver; operational execution and logistics efficiency remain the core edge.

The Bull Case

A 30.80% ROIC is the headline attraction—this is a business that extracts significant profit from invested capital, a hallmark of disciplined capital allocation. A Piotroski F-Score of 6 reinforces operational stability, and a forward P/E of 19.7 relative to a PEG of 1.3 suggests growth is reasonably aligned with valuation rather than speculative. Institutional Ownership at $4,283.08 indicates strong professional sponsorship, which tends to reinforce downside support. Despite a Current Ratio of 0.9, the company appears comfortable operating with tight working capital, a common trait in efficient retail models. For a GARP investor, this is a capital-efficient compounder trading at a valuation that reflects quality but not euphoria.

The Bear Case

Debt/Equity of 18.10% combined with a Current Ratio of 0.9 signals balance sheet tightness, leaving little margin for macro shocks. The Altman Z-Score of 2.6 is not distress-level, but it is far from bulletproof, especially when paired with a deeply negative operating margin of -84.10%, which raises serious questions about earnings quality. A PEG of 1.3 does not offer a margin of safety if growth disappoints, and the absence of any dividend or yield removes shareholder return support during volatility. If earnings momentum falters even modestly, a 24x multiple can compress quickly.

Market Sentiment & Smart Money

Short Interest %

2.20%

Analyst Consensus

1.45

Average Analyst Price Target

$4,283.08

Institutional Ownership %

94.70%

1-Year Beta

0.23

Insider Buying % (6 Mo)

0.20%%

Distance to 52-Week High

78.20%%

Distance to 52-Week Low

106.80%%