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AutoZone, Inc.
S&P 500
$48.9B
Market Cap
28.1
P/E
2.41
PEG
31.5%
ROCE
-61.2%
ROE
-3.68
D/E
19.1%
OPM
-30.9%
% from 52W High
22
α RS
🔍 AZO is showing a high-conviction setup because it matches 6 of 39 tracked screener presets, it's hugging the 21 EMA, and institutional_quality preset's Backtest win rate is 50.5% over 90 days. Net: Broad signal stack, not a recommendation. ? Conviction Technicals Backtest
Sources
Conviction 6/39 · hugging 21 EMA · Backtest win rate 50.5%
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🌏 Global Investor Returns
Currency-adjusted total returns for AZO including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company offers a product line for cars, sport utility vehicles, vans, and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also provides 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 provides 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 offers 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, tools, vehicle entertainment systems, 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, repair, collision, and shop management information software under the ALLDATA brand through alldata.com; Duralast branded products through duralastparts.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.

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📈 Growth Pattern
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⭐ Superinvestors Holding AZO
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 34.2K $115.5M 0.18% Mar 2026
Steve Cohen Point72 Asset Management 26.2K $88.6M 0.11% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$4.8B
+8.4% YoY
Operating Income
$923.8M
+6.6% YoY
Net Income
$641.5M
+5.4% YoY
EPS
$38.07
+7.7% YoY
What Went Right
  • Domestic same-store sales grew 4.1%, accelerating from Q2.
  • Commercial sales grew 10.4% with double-digit growth in both national accounts and up-and-down-the-street.
  • Opened 82 new stores globally, on track for 365 this year, and MegaHubs are exceeding expectations.
What to Watch
  • LIFO charges of $20M in Q3 and expected $30M in Q4 pressured gross margin (down 57 bps).
  • International constant-currency same-store sales only +1.6%, with continued soft macro in Mexico and Brazil.
  • Last two weeks of Q3 saw comps slow to +1.3% due to unseasonably cool weather affecting heat-related categories.
Management Guidance
  • Q4 LIFO charge expected to be approximately $30M, reducing EBIT.
  • Q4 interest expense planned at $152M.
  • Q4 tax rate expected to be about 22%.
  • Full-year store openings expected to be approximately 365 globally.
  • Domestic Q4 same-store sales expected to benefit from normal summer weather; international comps expected similar to Q3.
Investor Lens
The thesis is stronger after this call. AutoZone is delivering its fastest top-line growth in three years, driven by accelerating domestic commercial sales (up 10.4%) and continued DIY market share gains. The MegaHub and store expansion strategy is outperforming original expectations, and management remains disciplined on expenses. However, LIFO charges are a recurring headwind to margins, and international markets remain sluggish. The underlying demand environment (aging car parc, constricted new/used car market) provides a structural tailwind. The aggressive capital deployment (nearly $1.6B CapEx this year, share buybacks) supports long-term value creation, but near-term comps face lapping of inflation-driven ticket growth.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG AutoZone posts strongest sales quarter in three years; commercial and store expansion drive momentum.
Revenue
Total sales rose 8.4% to $4.8 billion, the largest increase in over three years. Domestic same-store sales grew 4.1%, with DIY comps up 2.2% and commercial comps up 10.4%. International constant-currency comps were +1.6% (unadjusted +16.6% on FX tailwinds).
Profitability
Net income increased 5.4% to $641.5 million, and diluted EPS grew 7.7% to $38.07. Excluding the $20M LIFO charge (vs. a $16M credit last year), EPS would have been up 12.5%.
Margins
Gross margin was 52.2%, down 57 bps due to a 77 bps unfavorable LIFO impact; excluding LIFO, gross margin improved 20 bps. Operating expenses leveraged 25 bps to 33.1% of sales, driven by strong top-line growth and expense discipline.
Balance Sheet
The company generated $455M in free cash flow in Q3 and $1.1B year-to-date. Leverage stood at 2.5x EBITDA. Inventory per store was up 6%, and accounts payable as a percentage of inventory was 111.1%. Share repurchases totaled $586M in the quarter.
Key Risks
Management and analysts noted: (1) LIFO charges will continue to pressure gross margins in Q4 ($30M expected). (2) Unseasonably cool weather in late Q3 softened sales, particularly in heat-related categories. (3) International same-store sales remain weak due to soft macro conditions in Mexico and Brazil.
Outlook
For Q4, management expects domestic same-store sales to benefit from normal summer weather and continued share gains, but sees international comps remaining in a similar range as Q3. LIFO charges, interest, and tax guidance were provided for Q4.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-05-26
Sales grew 8.4% year-over-year, with strong commercial and international performance, and EPS up 7.7%. Store expansion and MegaHub initiatives are driving market share gains, while disciplined expense management and robust capital allocation support continued growth.
Q2 2026 Q2 2026 2026-03-03
Q2 2026 saw 8.1% sales growth and strong commercial momentum, but EPS fell 2.3% due to a $59M LIFO charge; excluding this, EPS would have risen 7.1%. Store expansion and Mega Hub performance exceeded expectations, and management remains bullish on growth for the rest of the year.
Q1 2026 Q1 2026 2025-12-09
Sales rose 8.2% to $4.6B, with strong commercial growth and resilient DIY performance. EPS fell 4.6% due to a $98M LIFO charge, but would have risen 8.9% excluding it. Store expansion and disciplined capital allocation continue, with inflation and tariffs as key watchpoints.
Q4 2025 Q4 2025 2025-09-23
Quarterly sales rose 6.9% year-over-year on a comparable basis, with strong commercial and international growth offset by FX and LIFO headwinds. Record store openings and continued investment in hubs, technology, and supply chain position the company for further market share gains in FY 2026.
Q3 2025 Q3 2025 2025-05-27
Sales grew 5.4% to $4.5B, led by 10.7% domestic commercial growth and 8.1% international comp (constant currency), but FX headwinds reduced EPS by $1.10. Gross margin fell 77 bps due to mix and ramp-up costs, while investments in stores and technology continue to drive share gains.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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No Investment Recommendation:
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Information Sources:
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