Autozone Inc

AZO

Retail-Auto & Home Supply Stores

Mkt Cap

$49.04B

PE

18.71

Debt

$8.631B

Cash

$304.1M

EV

$57.37B

FCF

$2.029B

Market Cap

$49.04B

P/E Ratio

18.71

Debt

$8.631B

Cash

$304.1M

EV

$57.37B

FCF

$2.029B

Charts data: {"Earnings":[{"time":"2014-08-29","value":1069744000},{"time":"2015-08-28","value":1160241000},{"time":"2016-08-26","value":1241007000},{"time":"2017-08-25","value":1280869000},{"time":"2018-08-24","value":1337536000},{"time":"2019-08-30","value":1617221000},{"time":"2020-08-28","value":1732972000},{"time":"2021-08-27","value":2170314000},{"time":"2022-08-26","value":2429604000},{"time":"2023-08-25","value":2528426000}],"Sales":[{"time":"2014-08-29","value":9475313000},{"time":"2015-08-28","value":10187340000},{"time":"2016-08-26","value":10635676000},{"time":"2017-08-25","value":10888676000},{"time":"2018-08-24","value":11221077000},{"time":"2019-08-30","value":11863743000},{"time":"2020-08-28","value":12631967000},{"time":"2021-08-27","value":14629585000},{"time":"2022-08-26","value":16252230000},{"time":"2023-08-25","value":17457209000}],"Net Margins":[{"time":"2014-08-29","value":0.11289801191791765},{"time":"2015-08-28","value":0.113890475825878},{"time":"2016-08-26","value":0.11668341532780803},{"time":"2017-08-25","value":0.11763312637826674},{"time":"2018-08-24","value":0.11919854038966135},{"time":"2019-08-30","value":0.13631625364777372},{"time":"2020-08-28","value":0.13718940209390984},{"time":"2021-08-27","value":0.14835102977972375},{"time":"2022-08-26","value":0.14949357718909959},{"time":"2023-08-25","value":0.14483563781587308}],"Assets":[{"time":"2014-08-29","value":7517858000},{"time":"2015-08-28","value":8102349000},{"time":"2016-08-26","value":8599787000},{"time":"2017-08-25","value":9259781000},{"time":"2018-08-24","value":9346980000},{"time":"2019-08-30","value":9895913000},{"time":"2020-08-28","value":14423872000},{"time":"2021-08-27","value":14516199000},{"time":"2022-08-26","value":15275043000},{"time":"2023-08-25","value":15985878000}],"Stockholders Equity":[{"time":"2014-08-29","value":-1621857000},{"time":"2015-08-28","value":-1701390000},{"time":"2016-08-26","value":-1787538000},{"time":"2017-08-25","value":-1428377000},{"time":"2018-08-24","value":-1520355000},{"time":"2019-08-30","value":-1713851000},{"time":"2020-08-28","value":-877977000},{"time":"2021-08-27","value":-1797536000},{"time":"2022-08-26","value":-3538913000},{"time":"2023-08-25","value":-4349894000}],"ROE":[{"time":"2014-08-29","value":-0.6595797286690503},{"time":"2015-08-28","value":-0.6819371220002468},{"time":"2016-08-26","value":-0.6942548913645472},{"time":"2017-08-25","value":-0.8967303449999545},{"time":"2018-08-24","value":-0.8797524262425552},{"time":"2019-08-30","value":-0.9436182025158546},{"time":"2020-08-28","value":-1.9738239156606607},{"time":"2021-08-27","value":-1.2073827728624071},{"time":"2022-08-26","value":-0.6865396238901607},{"time":"2023-08-25","value":-0.5812615203956694}],"ROA":[{"time":"2014-08-29","value":0.24383461352954525},{"time":"2015-08-28","value":0.24104750363135433},{"time":"2016-08-26","value":0.23958674790433762},{"time":"2017-08-25","value":0.224634794278612},{"time":"2018-08-24","value":0.19373701452233769},{"time":"2019-08-30","value":0.22394467291699108},{"time":"2020-08-28","value":0.16761650408434017},{"time":"2021-08-27","value":0.20284421562421404},{"time":"2022-08-26","value":0.2141224086897824},{"time":"2023-08-25","value":0.21731593347578407}]}

AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Its products include 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 offers 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 provides 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, stereos and radios, tools, 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 and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. It has stores in the United States, Mexico, and Brazil. The company was founded in 1979 and is based in Memphis, Tennessee.

Sector

10-K
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11/17/18
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8/25/18
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5/5/18
10-Q
2/10/18

DCF

Discounted Cash Flow Valuation of Autozone Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$2.029B	$2.308B	$2.603B	$2.91B	$3.225B	$3.543B	$3.857B	$4.163B	$4.452B	$4.718B	$4.954B	$49.54B
DCF		$2.007B	$1.968B	$1.913B	$1.844B	$1.761B	$1.668B	$1.565B	$1.455B	$1.341B	$1.224B	$12.24B
Value	$28.99B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 12%

Earnings Stability 95%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Net Margin	11%	12%	12%	12%	14%	14%	15%	15%	14%	15%
ROA	24%	24%	22%	19%	22%	17%	20%	21%	22%	22%
ROE	-68%	-69%	-90%	-88%	-94%	-200%	-120%	-69%	-58%	-54%

What is the average Net Margin?

The average Net Margin over the past 5 years is +13.92%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.51%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +20.33%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.35%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -104.54%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +8.66%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Debt FCF	4.45	4.29	5.02	3.22	3.20	2.45	1.83	2.42	3.60	4.25
Debt Equity	-2.73	-2.77	-3.57	-3.31	-3.05	-6.32	-2.95	-1.74	-1.77	-1.78
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.25.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.03.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	08-2016	08-2018	08-2020	08-2022	Trend
Revenue	7.3%	9.2%	11%	7.4%	0.83%
Net Income	11%	14%	13%	4.1%	0.74%
Stockholders Equity	-	-	-	-	-
FCF	9.3%	6.6%	-1.8%	-16%	-2.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.24%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.83%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.58%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.74%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +23.4%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +6.59%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.13%.