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AutoZone
(NYSE:AZO)
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Rating:63Neutral
Price Target:
$2,985.00
▼(-1.40% Downside)
Action:Reiterated
Date:09/22/26
AZO scores as a solid but not top-tier setup: strong profitability and cash generation support the rating, and the latest earnings call reinforced confidence in commercial momentum and ongoing expansion. The score is held back primarily by elevated balance-sheet risk (high debt with negative equity) and a clearly weak technical trend (below major moving averages with negative momentum). Valuation is reasonable but not compelling enough to offset those risks.
Positive Factors
Strong Profitability and Cash Generation
AutoZone combines strong specialty-retail margins with substantial operating and free cash flow, demonstrating durable earnings power. This cash generation can support store growth, infrastructure investment, debt service, and shareholder returns while reinforcing resilience through normal operating fluctuations.
Negative Factors
High Leverage and Negative Equity
The persistent equity deficit and high debt reduce balance-sheet cushion and financial flexibility if operating conditions weaken. Leverage also increases the importance of sustained cash generation and disciplined capital allocation, leaving less room to absorb prolonged demand pressure or unexpected cost increases.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability and Cash Generation
AutoZone combines strong specialty-retail margins with substantial operating and free cash flow, demonstrating durable earnings power. This cash generation can support store growth, infrastructure investment, debt service, and shareholder returns while reinforcing resilience through normal operating fluctuations.
Read all positive factors
AutoZone Key Performance Indicators (KPIs)
Any
Store Count by Geography
Shows the distribution of stores across different regions, highlighting market penetration, regional growth opportunities, and potential exposure to local economic conditions.
Shows the distribution of stores across different regions, highlighting market penetration, regional growth opportunities, and potential exposure to local economic conditions.
Data provided by:
The Fly
The FlyAutoZone (AZO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.59B
Dividend YieldN/A
Average Volume (3M)322.43K
Price to Earnings (P/E)20.2
Beta (1Y)0.28
Revenue Growth7.39%
EPS Growth5.02%
CountryUS
Employees130,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)156.11
Shares Outstanding16,325,356
10 Day Avg. Volume178,280
30 Day Avg. Volume322,429
Financial Highlights & Ratios
PEG Ratio3.86
Price to Book (P/B)-19.51
Price to Sales (P/S)2.40
P/FCF Ratio0.00
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit5.76
Enterprise Value/Ebitda14.65
Forecast
1Y Price Target
$3,668.95Price Target Upside21.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)170.71
Revenue Forecast (FY)$21.83B
AutoZone Business Overview & Revenue Model
Company Description
AutoZone, Inc. operates as a leading retailer and distributor specializing in automotive replacement parts and accessories. The company's comprehensive inventory caters to a diverse range of vehicles, including cars, sport utility vehicles, vans, ...
How the Company Makes Money
AutoZone makes money primarily by selling automotive aftermarket products and services, with revenue generated when customers purchase parts and related items for vehicle repair and maintenance. Its key revenue streams include: (1) Retail (DIY) sa...
AutoZone Earnings Call Summary
Earnings Call Date:Sep 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call was predominantly positive. AutoZone reported record annual sales, strong EBIT and EPS growth, continued domestic commercial market-share gains, record store expansion, improving international trends, strong cash generation, and new-store performance ahead of forecast. The primary challenges were domestic DIY transaction declines, inflation and macroeconomic pressure, expense deleverage, near-term ROIC pressure from accelerated growth, volatile LIFO and tariff comparisons, and a slower Brazil expansion plan. Management nevertheless expressed confidence in improving sales momentum and FY 2027 growth prospects.Positive Updates
Record Annual Sales and Strong Quarterly Earnings Growth
Q4 total sales were $6.6 billion, up 5.6% versus the prior year. Total company EBIT increased 10.1%, net income rose 11.3% to $932 million, and diluted EPS increased 15.1% to $56.05. For FY 2026, sales reached an all-time high of $20.3 billion, up 7.4%, while EPS was $152.55, up 5.3%.
Negative Updates
Domestic DIY Same-Store Sales Declined
Domestic DIY same-store sales declined 0.6% in Q4, with DIY transactions down and lower foot traffic offsetting roughly 5% average-ticket growth. Retail comps were negative for the first three months of the quarter and essentially flat in August.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Sales and Strong Quarterly Earnings Growth
Q4 total sales were $6.6 billion, up 5.6% versus the prior year. Total company EBIT increased 10.1%, net income rose 11.3% to $932 million, and diluted EPS increased 15.1% to $56.05. For FY 2026, sales reached an all-time high of $20.3 billion, up 7.4%, while EPS was $152.55, up 5.3%.
Read all positive updates
Company Guidance
For FY 2027, AutoZone expects domestic same-store sales to be flat to up low single digits, driven by approximately 4% ticket growth; total domestic commercial sales growing high single to low double digits, with ticket average to grow in the roughly 4% range; and international comps of low to mid-single digit comps on a constant currency basis. The company expects to open approximately 400 stores, over 40 Mega Hubs, invest around $1.65 billion in CapEx, hold ROIC in the mid-30s area, and reduce the FY 2028 target from roughly 500 stores to 430, including roughly 300 stores in the U.S., 120 or so in Mexico, and roughly 20 or so in Brazil. For Q1 FY 2027, it expects same-store sales to be relatively flat, average ticket to remain around +5%, approximately 65 stores globally, SG&A growth of roughly 4% on a per store basis or 8.5%-9% on a total growth basis, $40 million in LIFO charges, approximately 22.7% all in for the tax rate, $114 million of interest expense, and foreign-exchange benefits of approximately $45 million to revenue, $14 million to EBIT, and $0.60 a share to EPS; for FY 2027, gross margins are expected to be flat to up 25 basis points on a GAAP basis, LIFO charges are modeled at $85 million to $90 million, and SG&A is expected to grow roughly 3% per store or approximately 8% on a total growth basis.AutoZone Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
34
Negative
Cash Flow
71
Positive
| Breakdown | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.34B | 18.94B | 18.49B | 17.46B | 16.25B |
| Gross Profit | 10.64B | 9.97B | 9.82B | 9.07B | 8.47B |
| EBITDA | 3.72B | 4.22B | 4.35B | 3.98B | 3.72B |
| Net Income | 2.57B | 2.50B | 2.66B | 2.53B | 2.43B |
Balance Sheet | |||||
| Total Assets | 21.63B | 19.36B | 17.18B | 15.99B | 15.28B |
| Cash, Cash Equivalents and Short-Term Investments | 326.12M | 271.80M | 298.17M | 277.05M | 264.38M |
| Total Debt | 12.45B | 12.29B | 12.37B | 10.93B | 9.30B |
| Total Liabilities | 24.13B | 22.77B | 21.93B | 20.34B | 18.81B |
| Stockholders Equity | -2.50B | -3.41B | -4.75B | -4.35B | -3.54B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 1.79B | 1.93B | 2.14B | 2.54B |
| Operating Cash Flow | 0.00 | 3.12B | 3.00B | 2.94B | 3.21B |
| Investing Cash Flow | 0.00 | -1.40B | -1.29B | -876.18M | -648.10M |
| Financing Cash Flow | 0.00 | -1.75B | -1.68B | -2.06B | -3.47B |
AutoZone Technical Analysis
Positive
3027.34
Price Trends
2948.02
Positive
3005.99
Positive
3269.37
Positive
Market Momentum
71.70
Negative
73.10
Negative
93.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZO, the sentiment is Positive. The current price of 3027.34 is above the 20-day moving average (MA) of 2953.75, above the 50-day MA of 2948.02, and below the 200-day MA of 3269.37, indicating a bullish trend. The MACD of 71.70 indicates Negative momentum. The RSI at 73.10 is Negative, neither overbought nor oversold. The STOCH value of 93.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AZO.
AutoZone Risk Analysis
AutoZone disclosed 22 risk factors in its most recent earnings report. AutoZone reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AutoZone Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $828.15M | 16.19 | 7.36% | 3.51% | 11.32% | 27.67% | |
69 Neutral | $72.82B | 28.14 | -232.45% | ― | 8.47% | 12.39% | |
66 Neutral | $3.68B | 16.99 | 14.76% | 4.50% | 3.30% | -1.80% | |
65 Neutral | $11.93B | 28.44 | 7.37% | 1.18% | 2.17% | 111.19% | |
63 Neutral | $51.59B | 20.22 | -90.08% | ― | 7.39% | 5.02% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $5.45B | 11.88 | 7.09% | 5.61% | -2.55% | -33.32% |
* Consumer Cyclical Sector Average
AZO
AutoZone
3,270.70
-534.86
-14.05%
BWA
BorgWarner
55.46
12.00
27.62%
DORM
Dorman Products
127.49
-30.54
-19.33%
LKQ
LKQ
22.47
-7.02
-23.79%
ORLY
O'Reilly Auto
92.00
-5.27
-5.42%
SMP
Standard Motor Products
37.68
-2.43
-6.05%
AutoZone Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
AutoZone Issues New Senior Notes to Strengthen Financing
Positive
Jul 15, 2026
On July 14, 2026, AutoZone, Inc. completed the sale of $850 million aggregate principal amount of 4.950% Senior Notes due 2031, issued under an existing indenture with Regions Bank as trustee and sold off a shelf registration filed earlier in July...
Business Operations and StrategyPrivate Placements and Financing
AutoZone Issues New Notes to Strengthen Financing Strategy
Positive
Jul 9, 2026
On July 7, 2026, AutoZone entered into an underwriting agreement with a syndicate led by BofA Securities, J.P. Morgan Securities, Truist Securities and U.S. Bancorp Investments to issue and sell $850 million of 4.950% notes due 2031. The agreement...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.