During the last year, AutoZone returned a positive performance of 17.8%, with a high of $2610.05 and a low of $1703.32. Over the same period, the stock outpaced the S&P 500 index by 24.0%. The company's 50-day average price was $2463.89 per share as of April 2023. AutoZone, Inc. retails and distributes automotive replacement parts and accessories. Based in Memphis, TN, the large-cap Consumer Cyclical company has 69,440 full time employees. AutoZone has not offered a regular dividend during the last year.
Better Gross Margins Than the Industry Average of 29.9%:
| 2019-08-31 | 2020-08-31 | 2021-08-31 | 2022-08-31 | |
|---|---|---|---|---|
| Revenue | $11,863,743 | $12,631,967 | $14,629,585 | $16,252,230 |
| Gross Margins | 53.6% | 53.6% | 52.8% | 52.1% |
| Operating Margins | 18.7% | 19.1% | 20.1% | 20.1% |
| Net Income | $1,617,221 | $1,732,972 | $2,170,314 | $2,429,604 |
| Net Margins | 13.63% | 13.72% | 14.84% | 14.95% |
| Earnings Per Share | $63.43 | $71.93 | $95.19 | $122.99 |
| Diluted Shares | 25,498 | 24,093 | 22,799 | 18,398 |
| Free Cash Flow | $1,632,463 | $2,262,372 | $2,896,776 | $2,538,744 |
| Capital Expenditures | -$496,050 | -$457,736 | -$621,767 | -$672,391 |
| Net Current Assets | -$6,581,079 | -$8,489,977 | -$9,898,432 | -$12,185,972 |
| Current Ratio | 0.91 | 1.08 | 0.87 | 0.77 |
| Long Term Debt | $5,206,344 | $5,513,371 | $5,269,820 | $6,122,092 |
| Net Debt / EBITDA | 1.94 | 1.33 | 1.22 | 1.58 |
AutoZone's Valuation Is in Line With Its Sector Averages:
AutoZone has a trailing twelve month P/E ratio of 20.0, compared to an average of 22.33 for the Consumer Cyclical sector. Based on its EPS guidance of $146.3, the company has a forward P/E ratio of 16.8. The compound average growth rate of the company's historical and projected earnings per share is 23.2%. On this basis, the company's PEG ratio is 0.86. Alternatively, we can use the weighted average of AutoZone and the broader market's estimated 5-year EPS growth rate. This normalized growth rate of 15.5% gives us a PEG ratio of 1.3, which shows that AutoZone is fairly priced.
Analysts Give AutoZone an Average Rating of Buy:
There are 21 analysts covering AutoZone, with target prices ranging from $1890.0 to $2899.0 per share, for an average of $2700.67. As of April 2023, the company is trading -8.8% away from its average target price, implying there is an analyst consensus of some upside potential. The average rating for AutoZone is buy.
With a 1.5% short interest, AutoZone has a very low short interest. Institutions own 95.6% of the company's shares, and it has a small amount of insider investors because 0.38% are owned by corporate insiders. Overall, the company's top shareholder is the Vanguard Group, Inc., whose 10% stake in the company is worth $4,719,279,257.
