AutoZone, Inc.(AZO)Fundamental Analysis & FinancialsNYSE
Valuation, growth, margins and balance sheet
Valuation Snapshot
What the multiples imply about expectations
The market considers the company to be a mid-cap company with a significant market presence. At current multiples, it trades fairly valued—reflecting market expectations.
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears unknown. Moderate ROE and strong ROA reflect reasonably efficient capital use. Debt is manageable within acceptable ranges.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | EPS (Basic) | EPS (Diluted) | Gross Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| Q2 2026(Latest) | $4.84B | $641.49M | $2.52B | $38.95 | $38.07 | 52.1% | 13.3% |
| Q1 2026 | $4.27B | $468.86M | $2.24B | $28.29 | $27.63 | 52.5% | 11.0% |
| Q4 2025 | $4.63B | $530.82M | $2.36B | $31.88 | $31.04 | 51.0% | 11.5% |
| Q3 2025 | $6.24B | $836.95M | $3.22B | $50.02 | $48.71 | 51.5% | 13.4% |
| Q2 2025 | $4.46B | $608.44M | $2.35B | $36.33 | $35.36 | 52.7% | 13.6% |
Key Insights:
- Revenue increased by 13.3% from previous quarter
- Net margin of 13.3% indicates moderate profitability
- EPS improved by 37.8% quarter-over-quarter
Financial Efficiency
Utilization and collections performance
Asset Turnover 1.05 indicates high efficiency. Receivables Turnover 30.35 and DSO 12.03 reflect excellent collections. Working Capital Turnover -17.27 is highly efficient (negative due to negative working capital model). ROIC 47.8% highlights strong capital returns.
Efficiency Metrics
* Negative working capital indicates the company operates efficiently with vendors funding operations
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Strong operational efficiency with balanced profitability
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Good margin profile with healthy profit retention
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
$3.07B
Cash from core operations
Free Cash Flow (TTM)
$1.63B
Available after capex
Financial Position & Liquidity
Current Ratio
0.90
Concerning
Quick Ratio
0.03
Weak
Net Cash
-$12.54B
Net debtor
Total Cash
$326.12M
Balance sheet cash
Total Debt
$12.86B
Outstanding borrowings
Cash Conversion Cycle
Working capital efficiency measurement
Days Sales Outstanding
12.0
days to collect payment
Days Inventory Outstanding
285.8
days to turn inventory
Cash Conversion Cycle
-28.6
net days of cycle
Excellent cash conversion — working capital cycles very efficiently.
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
0.25%
Minimal stake
Institutional Ownership
98.50%
Majority backing
Short % of Float
3.68%
Minimal short
Short Ratio (Days)
1.3d
days to cover
Ownership structure shows limited insider stake and institutional majority backing.
Dividends & Shareholder Returns
Policy stance and implications
The company does not currently pay a regular dividend — prioritizing reinvestment for growth. This makes it attractive for growth investors, while income-oriented investors may prefer peers with dividend payouts.
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Earnings Calendar
Track upcoming and historical corporate earnings reports.
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