Autozone Inc
AZO
Retail-Auto & Home Supply Stores
Mkt Cap
$48.17BPE
19.05Debt
$7.71BCash
$277.1MEV
$55.6BFCF
$2.144BP/E Ratio
19.05Debt
$7.71BCash
$277.1MEV
$55.6BFCF
$2.144BAutoZone, 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.
![ORLY Logo](data:image/svg+xml,<svg xmlns='http://www.w3.org/2000/svg' width='18' height='18'><defs><linearGradient id="a" x1="3.349" x2="21.904" y1="3.122" y2="24.434" gradientUnits="userSpaceOnUse"><stop stop-color="%231A1E21"/><stop offset="1" stop-color="%2306060A"/></linearGradient></defs><path fill="url(%23a)" d="M0 0h18v18H0z"/><text x='50%' y='52%' dominant-baseline='middle' text-anchor='middle' font-size='5' font-family='sans-serif' fill='gray'>ORLY</text></svg>){kind=small}
DCF
Discounted Cash Flow Valuation of Autozone Inc
Value
Growth
%
%
Discount
%
%
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 | $2.144B | $2.483B | $2.845B | $3.227B | $3.62B | $4.018B | $4.412B | $4.792B | $5.146B | $5.465B | $5.738B | $57.38B |
| DCF | $2.159B | $2.151B | $2.122B | $2.07B | $1.998B | $1.907B | $1.801B | $1.682B | $1.554B | $1.418B | $14.18B | |
| Value | $33.05B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 11%
Earnings Stability 94%
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.
| 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% | 14% |
| ROA | 24% | 24% | 22% | 19% | 22% | 17% | 20% | 21% | 22% | 22% |
| ROE | -68% | -69% | -90% | -88% | -94% | -200% | -120% | -69% | -58% | -58% |
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.
| 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 | 3.60 |
| Debt Equity | -2.73 | -2.77 | -3.57 | -3.31 | -3.05 | -6.32 | -2.95 | -1.74 | -1.77 | -1.77 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 3.60.
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.
| 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%.