Is AutoZone Stock a Good Investment?
AutoZone Investment Advice | AZO |
- Examine AutoZone's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research AutoZone's leadership team and their track record. Good management can help AutoZone navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Retail space and any emerging trends that could impact AutoZone's business and its evolving consumer preferences.
- Compare AutoZone's performance and market position to its competitors. Analyze how AutoZone is positioned in terms of product offerings, innovation, and market share.
- Check if AutoZone pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about AutoZone's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in AutoZone stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if AutoZone is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine AutoZone Stock
Researching AutoZone's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.67. AutoZone recorded earning per share (EPS) of 149.57. The entity last dividend was issued on the 29th of October 2010. The firm had 2:1 split on the 21st of April 1994.
To determine if AutoZone is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding AutoZone's research are outlined below:
| AutoZone generated a negative expected return over the last 90 days | |
| AutoZone has 12.37 B in debt. AutoZone has a current ratio of 0.75, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for AutoZone to invest in growth at high rates of return. | |
| Over 97.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from investing.com: Advance Auto Parts SWOT analysis stock turnaround faces headwinds |
AutoZone Quarterly Liabilities And Stockholders Equity |
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AutoZone uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in AutoZone. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to AutoZone's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 28th of May 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 17th of September 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 31st of August 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact AutoZone's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises AutoZone's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-12-06 | 2016-11-30 | 8.24 | 9.36 | 1.12 | 13 | ||
2018-12-04 | 2018-11-30 | 12.22 | 13.47 | 1.25 | 10 | ||
2023-02-28 | 2023-02-28 | 21.83 | 24.64 | 2.81 | 12 | ||
2015-03-03 | 2015-02-28 | 6.38 | 9.57 | 3.19 | 50 | ||
2015-05-26 | 2015-05-31 | 9.52 | 12.75 | 3.23 | 33 | ||
2016-05-24 | 2016-05-31 | 10.92 | 14.3 | 3.38 | 30 | ||
2016-03-01 | 2016-02-29 | 7.28 | 10.77 | 3.49 | 47 | ||
2014-09-22 | 2014-08-31 | 11.26 | 7.27 | -3.99 | 35 |
Know AutoZone's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as AutoZone is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AutoZone backward and forwards among themselves. AutoZone's institutional investor refers to the entity that pools money to purchase AutoZone's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Parnassus Investments Llc | 2024-09-30 | 299.5 K | T. Rowe Price Associates, Inc. | 2024-06-30 | 268.4 K | First Manhattan Co. Llc | 2024-09-30 | 258.9 K | Norges Bank | 2024-06-30 | 257 K | Stonepine Asset Management Inc. | 2024-09-30 | 199.8 K | Nordea Investment Mgmt Bank Demark A/s | 2024-09-30 | 182.3 K | Deutsche Bank Ag | 2024-06-30 | 170.6 K | Marshfield Associates | 2024-09-30 | 169.6 K | Northern Trust Corp | 2024-09-30 | 167.8 K | Vanguard Group Inc | 2024-09-30 | 1.8 M | Jpmorgan Chase & Co | 2024-06-30 | 1.3 M |
AutoZone's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 52.56 B.Market Cap |
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AutoZone's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.10 | |
| Return On Capital Employed | 0.45 | 0.33 | |
| Return On Assets | 0.16 | 0.10 | |
| Return On Equity | (0.56) | (0.53) |
Determining AutoZone's profitability involves analyzing its financial statements and using various financial metrics to determine if AutoZone is a good buy. For example, gross profit margin measures AutoZone's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of AutoZone's profitability and make more informed investment decisions.
Evaluate AutoZone's management efficiency
AutoZone has Return on Asset of 0.1428 % which means that on every $100 spent on assets, it made $0.1428 of profit. This is way below average. AutoZone's management efficiency ratios could be used to measure how well AutoZone manages its routine affairs as well as how well it operates its assets and liabilities. As of the 26th of November 2024, Return On Tangible Assets is likely to drop to 0.10. In addition to that, Return On Capital Employed is likely to drop to 0.33. At this time, AutoZone's Fixed Asset Turnover is very stable compared to the past year. As of the 26th of November 2024, Asset Turnover is likely to grow to 1.51, while Intangible Assets are likely to drop about 1.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (274.40) | (260.68) | |
| Tangible Book Value Per Share | (291.89) | (277.29) | |
| Enterprise Value Over EBITDA | 15.44 | 12.75 | |
| Price Book Value Ratio | (11.59) | (11.01) | |
| Enterprise Value Multiple | 15.44 | 12.75 | |
| Price Fair Value | (11.59) | (11.01) | |
| Enterprise Value | 7.9 B | 8.3 B |
Evaluating the management effectiveness of AutoZone allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The AutoZone Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 0.713 |
Basic technical analysis of AutoZone Stock
As of the 26th of November, AutoZone shows the Risk Adjusted Performance of 0.0043, mean deviation of 1.05, and Downside Deviation of 1.21. AutoZone technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.AutoZone's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific AutoZone insiders, such as employees or executives, is commonly permitted as long as it does not rely on AutoZone's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases AutoZone insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
AutoZone's Outstanding Corporate Bonds
AutoZone issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. AutoZone uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most AutoZone bonds can be classified according to their maturity, which is the date when AutoZone has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| AZO 475 01 AUG 32 Corp BondUS053332BB79 | View | |
| AZO 45 01 FEB 28 Corp BondUS053332BC52 | View | |
| US053332BA96 Corp BondUS053332BA96 | View | |
| AZO 475 01 FEB 33 Corp BondUS053332BD36 | View | |
| US053332AY81 Corp BondUS053332AY81 | View | |
| AUTOZONE INC Corp BondUS053332AZ56 | View | |
| AUTOZONE INC 375 Corp BondUS053332AV43 | View | |
| US053332AW26 Corp BondUS053332AW26 | View |
Understand AutoZone's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing AutoZone's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0043 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.05 | |||
| Semi Deviation | 1.19 | |||
| Downside Deviation | 1.21 | |||
| Coefficient Of Variation | 413578.7 | |||
| Standard Deviation | 1.29 | |||
| Variance | 1.66 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | (0.11) | |||
| Treynor Ratio | (0.02) | |||
| Maximum Drawdown | 6.36 | |||
| Value At Risk | (1.68) | |||
| Potential Upside | 2.14 | |||
| Downside Variance | 1.46 | |||
| Semi Variance | 1.42 | |||
| Expected Short fall | (1.08) | |||
| Skewness | 0.6191 | |||
| Kurtosis | 0.9935 |
| Risk Adjusted Performance | 0.0043 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.05 | |||
| Semi Deviation | 1.19 | |||
| Downside Deviation | 1.21 | |||
| Coefficient Of Variation | 413578.7 | |||
| Standard Deviation | 1.29 | |||
| Variance | 1.66 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | (0.11) | |||
| Treynor Ratio | (0.02) | |||
| Maximum Drawdown | 6.36 | |||
| Value At Risk | (1.68) | |||
| Potential Upside | 2.14 | |||
| Downside Variance | 1.46 | |||
| Semi Variance | 1.42 | |||
| Expected Short fall | (1.08) | |||
| Skewness | 0.6191 | |||
| Kurtosis | 0.9935 |
Consider AutoZone's intraday indicators
AutoZone intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of AutoZone stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 6346.53 | |||
| Daily Balance Of Power | 0.4273 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 3116.99 | |||
| Day Typical Price | 3126.06 | |||
| Market Facilitation Index | 3.0E-4 | |||
| Price Action Indicator | 44.55 | |||
| Period Momentum Indicator | 34.65 |
AutoZone Corporate Filings
F4 | 8th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 31st of October 2024 Other Reports | ViewVerify | |
| 30th of October 2024 Other Reports | ViewVerify | |
10K | 28th of October 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
AutoZone Stock media impact
Far too much social signal, news, headlines, and media speculation about AutoZone that are available to investors today. That information is available publicly through AutoZone media outlets and privately through word of mouth or via AutoZone internal channels. However, regardless of the origin, that massive amount of AutoZone data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of AutoZone news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of AutoZone relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to AutoZone's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive AutoZone alpha.
AutoZone Historical Investor Sentiment
Investor biases related to AutoZone's public news can be used to forecast risks associated with an investment in AutoZone. The trend in average sentiment can be used to explain how an investor holding AutoZone can time the market purely based on public headlines and social activities around AutoZone. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AutoZone's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AutoZone and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average AutoZone news discussions. The higher the estimate score, the more favorable the investor's outlook on AutoZone.
AutoZone Corporate Directors
| Michael Calbert | Independent Director | Profile | |
| Enderson Guimaraes | Independent Director | Profile | |
| David Jordan | Independent Director | Profile | |
| Jill Soltau | Independent Director | Profile |
Already Invested in AutoZone?
The danger of trading AutoZone is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of AutoZone is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than AutoZone. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile AutoZone is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether AutoZone offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AutoZone's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Autozone Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Autozone Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AutoZone. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. To learn how to invest in AutoZone Stock, please use our How to Invest in AutoZone guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Automotive Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AutoZone. If investors know AutoZone will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AutoZone listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.117 | Earnings Share 149.57 | Revenue Per Share 1.1 K | Quarterly Revenue Growth 0.09 | Return On Assets 0.1428 |
The market value of AutoZone is measured differently than its book value, which is the value of AutoZone that is recorded on the company's balance sheet. Investors also form their own opinion of AutoZone's value that differs from its market value or its book value, called intrinsic value, which is AutoZone's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AutoZone's market value can be influenced by many factors that don't directly affect AutoZone's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between AutoZone's value and its price, as these two are different measures arrived at by various means. Investors typically determine if AutoZone is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AutoZone's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.