NYSE: AZO · Automotive Retail
AutoZone, Inc.
AutoZone sells auto replacement parts, maintenance items, and accessories through 7,657 stores — 6,627 in the U.S., 883 in Mexico, and 147 in Brazil (August 2025). It sells to do-it-yourself customers and, through a commercial program in most stores, delivers parts to repair shops and dealers. It also sells ALLDATA repair software. Fiscal 2025 sales were $18.9 billion. Fiscal 2026 (ended August 29, 2026) sales rose 7.4% to $20.3 billion and EPS 5.3% to $152.55. Years of share buybacks have left shareholders' equity negative.
Last updated
Analysis last edited: October 10, 2026 · Financial data fetched: November 1, 2026 03:04 (SEC EDGAR) · Source 10-K filed: October 26, 2026
Built on10-K FY2026 · filed 2026-10-2610-Q (quarter ended 2026-05-09) · filed 2026-06-12
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 6.8%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 18.3%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +41.9 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 2.0x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.26x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 20.8x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.51
Higher than 40% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 50% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 95% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 55% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 31% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-08-29
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$3,312.43close on 2026-11-04
Market cap$53.57B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 20.8x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- —
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 14.2x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.4%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2026 year-end: 19.4x
Earnings: trailing 12 months to 2026-08-29
At FY2026 year-end: —
Book value at FY2026 year-end
At FY2026 year-end: 12.9x
EBITDA for FY2026
At FY2026 year-end: 3.8%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Aug 29, 2026 (fourth quarter: annual figure minus the first three quarters).
- Revenue$6.24B → $6.59B (vs. a year earlier)↑ +5.6%$6.24B → $6.59B (vs. a year earlier)
- Operating margin19.2% → 20.0% (vs. a year earlier)↑ +0.8 pts19.2% → 20.0% (vs. a year earlier)
- Net income$837M → $932M (vs. a year earlier)↑ +11.3%$837M → $932M (vs. a year earlier)
- Cash$254M → $326M (vs. previous quarter-end)↑ +28.5%$254M → $326M (vs. previous quarter-end)
- Long-term debt$9.02B → $9.08B (vs. previous quarter-end)↑ +0.7%$9.02B → $9.08B (vs. previous quarter-end)
Source: Form 10-K ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Sep 22, 2026.
Key changes
Fiscal 2026 net sales $20.3B, up 7.4%. Source sentence
For the fiscal year ended August 29, 2026, net sales were $20.3 billion, an increase of 7.4% from the prior year.
Q4 gross margin 53.3%, up 182 basis points. Source sentence
For the quarter, gross profit, as a percentage of sales, was 53.3%, an increase of 182 basis points versus the prior year.
Operating expenses 33.4% of sales versus 32.4%. Source sentence
Operating expenses, as a percentage of sales, were 33.4% versus last year at 32.4% with deleverage primarily driven by growth initiatives.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- AUTOZONE INC
- Headquarters
- MEMPHIS, TN
- Incorporated in
- Nevada
- Fiscal year end
- 08/29
- Exchange & ticker
- NYSE: AZO
- Industry
- Automotive Retail
- CIK
- 866787
- Website
- https://www.autozone.com/ ↗
Workforce (as of FY2026 year-end)
Employees
130,000
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q1 FY2027
Quarter end: November 2026. In past years, Q1 results were released 17 days after quarter end (Dec 9, 2025; Dec 10, 2024; Dec 5, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around August 29.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 17–24 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q4 FY2026 | Aug 29, 2026 | Sep 22, 2026 (+24 days) | Oct 26, 2026 10-K (+58 days) |
| Q3 FY2026 | May 9, 2026 | May 26, 2026 (+17 days) | Jun 12, 2026 10-Q (+34 days) |
| Q2 FY2026 | Feb 14, 2026 | Mar 3, 2026 (+17 days) | Mar 20, 2026 10-Q (+34 days) |
| Q1 FY2026 | Nov 22, 2025 | Dec 9, 2025 (+17 days) | Dec 19, 2025 10-Q (+27 days) |
| Q4 FY2025 | Aug 30, 2025 | Sep 23, 2025 (+24 days) | Oct 27, 2025 10-K (+58 days) |
| Q3 FY2025 | May 10, 2025 | May 27, 2025 (+17 days) | Jun 13, 2025 10-Q (+34 days) |
| Q2 FY2025 | Feb 15, 2025 | Mar 4, 2025 (+17 days) | Mar 21, 2025 10-Q (+34 days) |
| Q1 FY2025 | Nov 23, 2024 | Dec 10, 2024 (+17 days) | Dec 20, 2024 10-Q (+27 days) |
| Q4 FY2024 | Aug 31, 2024 | Sep 24, 2024 (+24 days) | Oct 28, 2024 10-K (+58 days) |
| Q3 FY2024 | May 4, 2024 | May 21, 2024 (+17 days) | Jun 7, 2024 10-Q (+34 days) |
| Q2 FY2024 | Feb 10, 2024 | Feb 27, 2024 (+17 days) | Mar 15, 2024 10-Q (+34 days) |
| Q1 FY2024 | Nov 18, 2023 | Dec 5, 2023 (+17 days) | Dec 18, 2023 10-Q (+30 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Auto parts
Failure parts
Examples: Batteries, brakes, starters and alternators, A/C compressors, fuel pumps
$9.29B in fiscal 2025.
Auto parts
Maintenance items
Examples: Oil, filters, fluids, wipers, brake pads
$6.81B.
Auto parts
Accessories and other
Examples: Accessories and non-automotive products
$2.84B.
Software
ALLDATA
Examples: Diagnostic, repair, collision, and shop management software
From the FY2025 Form 10-K.
U.S. and worldwide share of flagship products/services
The filings reviewed give no market share figure for the company's products or services. It calls itself "a leading distributor" of auto parts to commercial customers in a highly fragmented market, without a figure.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-05-09)
07
Recent strategic focusSite analysis
Fiscal 2025 from the 10-K, and fiscal 2026 from 8-Ks.
Fiscal 2026 results
Sales $20.3B (+7.4%), operating profit $3.7B (+3.1%), EPS $152.55 (+5.3%); domestic same store sales +3.3%.
Source: Q4 FY2026 earnings release
Tariff refunds
Q4 fiscal 2026 gross margin benefited by 145 basis points from tariff refunds.
Source: Q4 FY2026 earnings release
New notes
$850M of 4.950% senior notes due 2031 issued July 2026.
Source: 8-K filed 2026-07-14
Board transition
William Rhodes moved from Executive Chairman to Chairman in January 2026.
Source: 8-K filed 2025-10-08
Capex ÷ D&A (FY2026)
2.10x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$1,434M ÷ $684M = 2.10x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $622M in FY2021 to $1.43B in FY2026
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$20.34B
As reported in the 10-K
Revenue CAGR (5 years)
+6.8%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($20,339M ÷ $14,630M) ^ (1÷5) − 1 = 6.8%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
18.3%▼caution
-1.8pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$3,723M ÷ $20,339M × 100 = 18.3%
ROE (FY2026)
—▼caution
6-year average: —
As reported in the 10-K
P/B (FY2026 end)
—
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
12.9x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($47,904M + $9,125M − $326M) ÷ ($3,723M + $684M) = 12.9x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +6.8% a year over 5 years (strong growth)
From $14.63B in FY2021 to $20.34B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 20.1% → 18.3%
How much operating profit is left per $100 of revenue. It moved -1.8 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is -11.6% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Retail sales to do-it-yourself customers
- Prompt delivery and credit to commercial customers
- Online sales (autozone.com, autozonepro.com)
- ALLDATA diagnostic and repair software
06 · what it draws on
Key resources
- About 130,000 AutoZoners
- Distribution centers
- Duralast-branded products
02 · why customers buy
Value propositions
- Customer service, including the knowledge of its AutoZoners and prompt delivery to commercial customers, plus parts availability.
04 · how it keeps them
Customer relationships
- Repeat visits by do-it-yourself customers and ongoing delivery to repair garages, dealers and fleets.
03 · how it reaches them
Channels
- Stores in the U.S., Mexico and Brazil; a commercial sales program in 6,098 domestic stores; online.
01 · who it serves
Customer segments
- Do-it-yourself vehicle owners
- Repair garages, dealers, service stations, fleets
09 · where money goes
Cost structure
FY2026, share of revenue ($20.34B)
- Cost of revenue47.7%
- Selling, general & administrative34.0%
Operating profit left: 18.3% of revenue. Depreciation & amortization (inside the costs above): $684M. Capital spending: $1.43B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Product sales
- ALLDATA software sales
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Stores carrying new and remanufactured hard parts, maintenance items, accessories, and non-automotive products for cars, SUVs, vans, and light trucks, plus a commercial program delivering parts to repair garages, dealers, service stations, and fleets.
01 what it draws on
Inputs & resources
- About 130,000 AutoZoners
- Distribution centers
- Duralast-branded products
02 what it does
Activities
- Retail sales to do-it-yourself customers
- Prompt delivery and credit to commercial customers
- Online sales (autozone.com, autozonepro.com)
- ALLDATA diagnostic and repair software
03 who it serves
Customers
- Do-it-yourself vehicle owners
- Repair garages, dealers, service stations, fleets
04 how money comes in
How it earns
- Product sales
- ALLDATA software sales
How the business makes money
- Fiscal 2025 sales $18.9B: failure parts $9.29B, maintenance items $6.81B, accessories and other $2.84B.
- Commercial program in 6,098 domestic stores.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
AutoZone invests in tax-credit equity and faces tariff-driven inflation.
Government funding & tax credits
Tax credit equity
Net investment in tax credit equity investments was $111.8M in fiscal 2025.
Supports the businessTouches: How it earnsSource: Form 10-K (FY2025)
Trade & export rules
Tariffs and trade rules
Merchandise cost inflation was driven primarily by tariffs.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Failure parts
9,292 (49%)Maintenance items
6,807 (36%)Accessories and other
2,840 (15%)
Source: Form 10-K (FY2025, ended Aug 30, 2025) — Note on segment reporting Auto Parts segment sales by product grouping; AutoZone reports one reportable segment.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Sales are individual retail purchases and commercial orders, which are delivered promptly and can be bought on commercial credit.
- Spot / one-off transaction
Retail (do-it-yourself)
Not disclosed separately
Typical term: Point-of-sale purchases
- Spot / one-off transaction
Commercial
Domestic commercial sales grew 6.7% in fiscal 2025
Typical term: Delivery with commercial credit
Source: Form 10-K (FY2025, ended Aug 30, 2025) — Item 1; MD&A
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Do-it-yourself consumers and commercial customers such as repair garages, dealers, service stations, and fleets.
Named by the company
None named in the 10-K or the company’s press releases.
Suppliers
Parts manufacturers and vendors.
Named by the company
None named in the 10-K or the company’s press releases.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
AutoZone's 10-K describes a highly competitive market: national, regional, and local auto parts chains, independent stores, online stores and marketplaces, wholesale distributors, jobbers, repair shops, car washes, auto dealers, and mass merchandisers and other retailers. It doesn't name competitors.
Competitors named in the 10-K
AutoZone's 10-K doesn't name competitors.
Peer group the company chose
FY25 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Direct competitors, companies AutoZone competes with for talent, customers, and capital, and companies with comparable financial measures and business models (retailers and distributors).
- Advance Auto Partssite ↗
- Bath & Body Workssite ↗
- Costcosite ↗
- Dick's Sporting Goodssite ↗
- Dollar Generalsite ↗
- Dollar Treesite ↗
- Genuine Partssite ↗
- LKQsite ↗
- Lowe'ssite ↗
- O'Reilly Automotivesite ↗
- Sherwin-Williamssite ↗
- Tractor Supplysite ↗
- Ulta Beautysite ↗
- W.W. Graingersite ↗
Auto parts retailers and distributors
Source: Proxy statement (DEF 14A, filed 2025-10-28) — Peer Group CompositionCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
Financial stability & capital efficiency
Unit: %
- Equity ratio
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 14,630 | 16,252 | 17,457 | 18,490 | 18,939 | 20,339 |
| Operating income | 2,945 | 3,271 | 3,474 | 3,789 | 3,610 | 3,723 |
| Pretax income | 2,749 | 3,079 | 3,168 | 3,337 | 3,134 | 3,251 |
| Net income (attributable) | 2,170 | 2,430 | 2,528 | 2,662 | 2,498 | 2,573 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 11.1% | 7.4% | 5.9% | 2.4% | 7.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 20.1% | 20.1% | 19.9% | 20.5% | 19.1% | 18.3% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 14.8% | 14.9% | 14.5% | 14.4% | 13.2% | 12.6% |
| Balance sheet ($M) | ||||||
| Total assets | 14,516 | 15,275 | 15,986 | 17,177 | 19,355 | 21,631 |
| Total equity | -1,798 | -3,539 | -4,350 | -4,750 | -3,414 | -2,502 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 5,300 | 6,153 | 7,710 | 9,080 | 8,849 | 9,125 |
| Equity ratio | -12.4% | -23.2% | -27.2% | -27.7% | -17.6% | -11.6% |
| Cash flow ($M) | ||||||
| Operating CF | 3,519 | 3,211 | 2,941 | 3,004 | 3,117 | 3,249 |
| Investing CF | -602 | -648 | -876 | -1,287 | -1,400 | -1,444 |
| Financing CF | -3,500 | -3,470 | -2,060 | -1,684 | -1,747 | -1,768 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,897 | 2,539 | 2,144 | 1,931 | 1,790 | 1,816 |
| Cash and equivalents | 1,171 | 264 | 277 | 298 | 272 | 326 |
| Per share & other | ||||||
| EPS ($) | 95.19 | 117.19 | 132.36 | 149.55 | 144.87 | 152.55 |
| BVPS ($) | — | — | — | — | -204.88 | -154.73 |
| P/E (x) | 16.3 | 18.5 | 18.5 | 21.3 | 29.0 | 19.4 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 11.8 | 13.7 | 13.7 | 15.1 | 18.6 | 12.9 |
Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-08-29 † | $6.59B+5.6% | $1.32B+10.1% | $932M+11.3% | — |
| 2026-05-09 | $4.84B+8.4% | $924M+6.6% | $641M+5.4% | $38.07 |
| 2026-02-14 | $4.27B+8.1% | $698M-1.2% | $469M-3.9% | $27.63 |
| 2025-11-22 | $4.63B+8.2% | $784M-6.8% | $531M-6.0% | $31.04 |
| 2025-08-30 † | $6.24B | $1.2B | $837M | — |
| 2025-05-10 | $4.46B | $866M | $608M | $35.36 |
| 2025-02-15 | $3.95B | $707M | $488M | $28.29 |
| 2024-11-23 | $4.28B | $841M | $565M | $32.52 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
49.1%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$3,723M × (1 − 20.5%) ÷ $6,028M × 100 = 49.1%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
7.20%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $47.9B ÷ ($47.9B + $9.13B) = 84.0%
e.g.Debt weight: $9.13B ÷ ($47.9B + $9.13B) = 16.0%
e.g.WACC: 7.8% × 84.0% + 5.4% × (1 − 20.5%) × 16.0% = 7.20%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.0%–8.7% and ROIC − WACC runs +40.4 to +43.1 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 7.20% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.51 (price-derived adjusted beta, but correlation with the market is low (R² 0.03), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 7.76%
- Cost of debt
- 5.37%
- Tax rate
- 20.5% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 84% : 16%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 7.20%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.51 (price-derived adjusted beta. Raw β 0.26, R² 0.03, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.263 + 0.33 = 0.506
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.51 × 5.5% = 7.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
4.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 7.2% − 2.9%
Past FCF growth (FY2021–FY2026)
-8.9%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+6.8%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $1.82B (operating CF − capex); enterprise value $62.37B = market cap $53.57B (latest close, 2026-11-04) + debt $9.13B − cash and short-term investments $326M; r = WACC of 7.2% using this page’s default assumptions (β 0.51, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$62.6B
FCF $1.82B ÷ (7.2% − 4.3%)
Theoretical ÷ actual enterprise value
1.00x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 5.2% | 6.2% | 7.2% | 8.2% | 9.2% |
|---|---|---|---|---|---|
| 0% | 0.56x | 0.47x | 0.40x | 0.35x | 0.32x |
| 2% | 0.91x | 0.69x | 0.56x | 0.47x | 0.40x |
| 4% | 2.43x | 1.32x | 0.91x | 0.69x | 0.56x |
| 6% | — | 14.55x | 2.43x | 1.32x | 0.91x |
| 8% | — | — | — | 14.55x | 2.43x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.29x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.3%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 115%
Most profit comes from core operations.
- ✓
Days sales outstanding: 9 → 13 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-10-26
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$3,249M ÷ $2,573M = 1.26x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$3,723M ÷ $3,251M × 100 = 115%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($670M + $755M) ÷ 2 ÷ $20,339M × 365 = 13 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 95.5%
- Directors & officers (shares)
- 1.8%
- Everyone else (est.)
- 2.7%
- Directors & officers (voting power)
- 1.8%
- Institutional-ownership rank
- 115 of 416
- Beta (adjusted)
- 0.51
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 27% of covered companies have more
above 1 = swings more than the market
- 15.6M shares reported by 1,269 13F filers ÷ 16.3M shares outstanding on 2026-06-05. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-10-27 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-06-05)
18
Strengths & weaknessesSite analysis
Strengths
1. Steady growth
Revenue grew from $12.6B (fiscal 2020) to $18.9B (fiscal 2025), about 8% a year, and stores from 6,549 to 7,657.
Evidence: Form 10-K (FY2025), Risk Factors
2. High gross margin
Gross margin of 52.6% in fiscal 2025.
Evidence: Form 10-K (FY2025), MD&A
3. Consistent buybacks
Repurchased $1.53B of stock in fiscal 2025 and $2.0B in fiscal 2026; share count fell steadily.
Evidence: Form 10-K (FY2025); Q4 FY2026 earnings release
4. Commercial growth
Domestic commercial sales rose 6.7% in fiscal 2025.
Evidence: Form 10-K (FY2025), MD&A
Weaknesses
1. Negative equity
Shareholders' equity was −$3.4B at the end of fiscal 2025 because buybacks exceed retained earnings.
Evidence: SEC EDGAR XBRL
2. Rising debt
Debt grew from $5.3B (fiscal 2021) to $8.8B (fiscal 2025), and interest expense from $202M to $490M.
Evidence: SEC EDGAR XBRL
3. Slower domestic sales
Domestic same store sales rose 0.4% in fiscal 2024 and 3.3% in fiscal 2026.
Evidence: Form 10-K (FY2025); Q4 FY2026 earnings release
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
19.4x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
3.8%
(Operating CF − capex) ÷ market cap
1. Buyback compounding
Steady buybacks shrink the share count, lifting EPS faster than net income.
- What has to hold
- Cash flow stays strong.
- The other side
- Debt keeps rising and equity is negative.
Evidence: Form 10-K (FY2025)
2. Needs-based demand
Failure and maintenance parts made up 85% of fiscal 2025 sales.
- What has to hold
- Vehicles keep aging and being repaired.
- The other side
- Economic pressure can delay purchases.
Evidence: Form 10-K (FY2025)
Fiscal year ends on the last Saturday of August. AutoZone pays no dividend. Shareholders' equity is negative, so ROE and book value per share aren't shown.
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
—
$326M vs. —
Interest coverage (operating income ÷ interest expense)
7.6x
$3.72B vs. $490M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -4.7% in FY2025 ($3.79B → $3.61B) | Not yet, as of FY2026 |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Cash generation
Operating cash flow of $3.1B in fiscal 2025.
Source: SEC EDGAR XBRL
Needs-based products
Failure and maintenance items made up 85% of fiscal 2025 sales.
Source: Form 10-K (FY2025), segment note
Leverage
About $8.8B of debt and negative equity.
Source: SEC EDGAR XBRL
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
AutoZone reports ordinary-course matters such as wage-and-hour, employment, product liability, privacy and environmental claims.
Company statement: AutoZone does not believe these matters, individually or in aggregate, will result in material liabilities.
Based on Form 10-Q (quarter ended 2026-05-09) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- National, regional, and local parts chains, online marketplaces, wholesale distributors, dealers, and mass merchandisers.
- Company’s stated mitigation
- Customer service, parts availability, and the Duralast brand.
- This site’s assessment
- Impact Med / Likelihood High
- 2Demand & macro
Consumer and economic pressure
- Company disclosure (summarized from the 10-K)
- Same store sales depend on demand and on prices AutoZone can charge, both affected by economic pressures.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Geopolitics & supply chain
Tariffs and imports
- Company disclosure (summarized from the 10-K)
- Tariffs affect product costs; Q4 fiscal 2026 gross margin included a benefit from tariff refunds.
- Company’s stated mitigation
- Pricing.
- This site’s assessment
- Impact Med / Likelihood High
- 4FX & interest rates
Mexico and Brazil currencies
- Company disclosure (summarized from the 10-K)
- International same store sales were −3.2% reported but +9.3% in constant currency in fiscal 2025.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Low / Likelihood High
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (1)
The rapid evolution and increased adoption of AI, including generative and agentic AI, may create new or heightened risks for our business. Read more
If we are unsuccessful in developing, deploying, or governing these technologies, or if competitors adopt them more effectively, our competitive position, customer experience, operations, reputation, financial condition, or results of operations could be adversely affected. AI use may also increase cybersecurity risks by enabling more sophisticated, automated, or difficult-to-detect threats, and evolving laws and regulations related to AI, privacy, consumer protection, and data use may increase compliance obligations and potential exposure.
No longer in the text (1)
During fiscal 2025, new global trade tariffs were announced on imports to the United States, including additional tariffs on various countries from which the Company directly or indirectly imports and/or sources merchandise, including Canada, China and Mexico, among others. In response, several countries have imposed or threatened reciprocal tariffs on imports from the U.S. and other measures. Various modifications to the U.S. tariffs have been
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Oct 26, 2026 ↗ with the 10-K filed Oct 27, 2025 ↗.
24
What to watch going forwardSite analysis
- Domestic same store sales and commercial growth.
- International store expansion.
- Gross margin with tariffs and LIFO effects.
- Debt and buybacks with negative equity.
- Fiscal 2026 10-K (expected late October 2026).
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 10, 2026 · Financial data fetched: November 1, 2026 03:04 (SEC EDGAR) · Source 10-K filed: October 26, 2026
Built on10-K FY2026 · filed 2026-10-26
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent AutoZone, Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.