📊 AZO Key Takeaways
Investment Thesis
AutoZone demonstrates strong operational profitability with solid 16.9% operating margins and robust free cash flow generation of $630M, but is significantly constrained by negative stockholders' equity of -$3.2B and high financial leverage with $8.6B long-term debt. The deteriorating interest coverage ratio of 2.4x and liquidity metrics below 1.0x raise concerns about financial flexibility despite consistent operational cash generation.
AZO Strengths
- Strong operating cash flow of $944.2M with healthy FCF conversion (13.6% FCF margin)
- Solid gross margin of 51% and operating margin of 16.9% indicating pricing power and operational efficiency
- Consistent revenue generation with 2.4% YoY growth in competitive auto parts retail sector
- Positive free cash flow enabling debt service despite capital structure constraints
AZO Risks
- Severely negative stockholders' equity of -$3.2B indicating aggressive financial engineering and equity destruction
- High financial leverage with $8.6B debt against only $287.6M cash creates refinancing and solvency risk
- Weak liquidity ratios (current 0.86x, quick 0.59x) below safe levels with tight interest coverage of 2.4x
- Flat net income growth (0.0% YoY) and diluted EPS decline (-3.1% YoY) suggest earnings pressure despite revenue growth
- Capital-intensive business model requiring ongoing investment ($314.2M capex annually)
Key Metrics to Watch
- Operating cash flow trend and working capital management given liquidity constraints
- Interest coverage ratio and debt refinancing needs to ensure solvency
- Net margin trajectory and operating leverage given flat earnings despite revenue growth
- Free cash flow sustainability and dividend/debt reduction capacity
AZO Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AZO Profitability Ratios
AZO vs Consumer Sector
How AUTOZONE INC compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AZO Balance Sheet & Liquidity
AZO 5-Year Financial Trend
5-Year Trend Summary: AUTOZONE INC's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $132.36 reflects profitable operations.
AZO Growth Metrics (YoY)
AZO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.3B | $530.8M | $31.04 |
| Q3 2025 | $4.2B | $608.4M | $35.36 |
| Q2 2025 | $3.9B | $487.9M | $28.29 |
| Q1 2025 | $4.2B | $564.9M | $32.52 |
| Q3 2024 | $4.1B | $647.7M | $34.12 |
| Q2 2024 | $3.7B | $476.5M | $24.64 |
| Q1 2024 | $4.0B | $539.3M | $27.45 |
| Q3 2023 | $3.9B | $592.6M | $29.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AZO Capital Allocation
AZO SEC Filings
Access official SEC EDGAR filings for AUTOZONE INC (CIK: 0000866787)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AZO
What is the AI rating for AZO?
AUTOZONE INC (AZO) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AZO's key strengths?
Strong operating cash flow of $944.2M with healthy FCF conversion (13.6% FCF margin). Solid gross margin of 51% and operating margin of 16.9% indicating pricing power and operational efficiency.
What are the risks of investing in AZO?
Severely negative stockholders' equity of -$3.2B indicating aggressive financial engineering and equity destruction. High financial leverage with $8.6B debt against only $287.6M cash creates refinancing and solvency risk.
What is AZO's revenue and growth?
AUTOZONE INC reported revenue of $4.6B.
Does AZO pay dividends?
AUTOZONE INC does not currently pay dividends.
Where can I find AZO SEC filings?
Official SEC filings for AUTOZONE INC (CIK: 0000866787) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AZO's EPS?
AUTOZONE INC has a diluted EPS of $31.04.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.