KabuDo

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 growth
6.8%

Higher than 40% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
18.3%

Higher than 50% of 311 non-financial companies

Latest fiscal year (FY2026)

ROIC minus WACC
+41.9 pts

Higher than 95% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
2.0x

Higher than 55% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
1.26x

Higher than 31% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
—

Years the dividend per share rose, of the last 5

P/E today
20.8x

Latest close 2026-11-04; trailing 12 months to 2026-08-29

Beta
0.51

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/E today
20.8x

At FY2026 year-end: 19.4x

Earnings: trailing 12 months to 2026-08-29

P/B today
—

At FY2026 year-end: —

Book value at FY2026 year-end

EV/EBITDA today
14.2x

At FY2026 year-end: 12.9x

EBITDA for FY2026

FCF yield today
3.4%

At FY2026 year-end: 3.8%

Free cash flow for FY2026

Dividend yield today
—

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↑ +5.6%$6.24B → $6.59B (vs. a year earlier)
  • Operating margin↑ +0.8 pts19.2% → 20.0% (vs. a year earlier)
  • Net income↑ +11.3%$837M → $932M (vs. a year earlier)
  • Cash↑ +28.5%$254M → $326M (vs. previous quarter-end)
  • Long-term debt↑ +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

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.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q4 FY2026Aug 29, 2026Sep 22, 2026 (+24 days)Oct 26, 2026 10-K (+58 days)
Q3 FY2026May 9, 2026May 26, 2026 (+17 days)Jun 12, 2026 10-Q (+34 days)
Q2 FY2026Feb 14, 2026Mar 3, 2026 (+17 days)Mar 20, 2026 10-Q (+34 days)
Q1 FY2026Nov 22, 2025Dec 9, 2025 (+17 days)Dec 19, 2025 10-Q (+27 days)
Q4 FY2025Aug 30, 2025Sep 23, 2025 (+24 days)Oct 27, 2025 10-K (+58 days)
Q3 FY2025May 10, 2025May 27, 2025 (+17 days)Jun 13, 2025 10-Q (+34 days)
Q2 FY2025Feb 15, 2025Mar 4, 2025 (+17 days)Mar 21, 2025 10-Q (+34 days)
Q1 FY2025Nov 23, 2024Dec 10, 2024 (+17 days)Dec 20, 2024 10-Q (+27 days)
Q4 FY2024Aug 31, 2024Sep 24, 2024 (+24 days)Oct 28, 2024 10-K (+58 days)
Q3 FY2024May 4, 2024May 21, 2024 (+17 days)Jun 7, 2024 10-Q (+34 days)
Q2 FY2024Feb 10, 2024Feb 27, 2024 (+17 days)Mar 15, 2024 10-Q (+34 days)
Q1 FY2024Nov 18, 2023Dec 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.

  1. 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

  2. Tariff refunds

    Q4 fiscal 2026 gross margin benefited by 145 basis points from tariff refunds.

    Source: Q4 FY2026 earnings release

  3. New notes

    $850M of 4.950% senior notes due 2031 issued July 2026.

    Source: 8-K filed 2026-07-14

  4. 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%

termsOperating income · Revenue (net sales)

ROE (FY2026)

—▼caution

6-year average: —

As reported in the 10-K

P/B (FY2026 end)

—

formulafiscal year-end closing price ÷ book value per share

termsP/B · BVPS

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

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.

How money and goods flow at AutoZone, Inc.
  1. 01 what it draws on

    Inputs & resources

    • About 130,000 AutoZoners
    • Distribution centers
    • Duralast-branded products
  2. 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
  3. 03 who it serves

    Customers

    • Do-it-yourself vehicle owners
    • Repair garages, dealers, service stations, fleets
  4. 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 earns

    Source: Form 10-K (FY2025)

  • Trade & export rules

    Tariffs and trade rules

    Merchandise cost inflation was driven primarily by tariffs.

    Constrains the businessTouches: Inputs & resources

    Source: 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).

Auto parts retailers and distributors

Source: Proxy statement (DEF 14A, filed 2025-10-28) — Peer Group Composition

Company 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

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

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 itemFY202110-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 ($M)
Revenue14,63016,25217,45718,49018,93920,339
Operating income2,9453,2713,4743,7893,6103,723
Pretax income2,7493,0793,1683,3373,1343,251
Net income (attributable)2,1702,4302,5282,6622,4982,573
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—11.1%7.4%5.9%2.4%7.4%
Operating margincalcoperating income ÷ revenue × 10020.1%20.1%19.9%20.5%19.1%18.3%
Net margincalcnet income attributable to the company ÷ revenue × 10014.8%14.9%14.5%14.4%13.2%12.6%
Balance sheet ($M)
Total assets14,51615,27515,98617,17719,35521,631
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 payable5,3006,1537,7109,0808,8499,125
Equity ratio-12.4%-23.2%-27.2%-27.7%-17.6%-11.6%
Cash flow ($M)
Operating CF3,5193,2112,9413,0043,1173,249
Investing CF-602-648-876-1,287-1,400-1,444
Financing CF-3,500-3,470-2,060-1,684-1,747-1,768
Free cash flowcalccash flow from operations − capital expenditures2,8972,5392,1441,9311,7901,816
Cash and equivalents1,171264277298272326
Per share & other
EPS ($)95.19117.19132.36149.55144.87152.55
BVPS ($)————-204.88-154.73
P/E (x)16.318.518.521.329.019.4
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)11.813.713.715.118.612.9

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 endedRevenueOperating incomeNet incomeDiluted 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

ROIC − WACC

+41.9pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 6 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

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%
→ Change assumptions and recalculate

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.

Cost of equity7.76%

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)

Market value of equity$47.9B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$9.13B
Cost of debt5.37%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)84% : 16%

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 \ r5.2%6.2%7.2%8.2%9.2%
0%0.56x0.47x0.40x0.35x0.32x
2%0.91x0.69x0.56x0.47x0.40x
4%2.43x1.32x0.91x0.69x0.56x
6%—14.55x2.43x1.32x0.91x
8%———14.55x2.43x

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.

16

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

termsAccounts receivable · Revenue (net sales)

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

termsAccounts receivable · Revenue (net sales)

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%

individuals and other non-13F holders

Directors & officers (voting power)
1.8%

no separate voting figure; shown as shares

Institutional-ownership rank
115 of 416

1 = most institutional; 27% of covered companies have more

Beta (adjusted)
0.51

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. 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. 2. High gross margin

    Gross margin of 52.6% in fiscal 2025.

    Evidence: Form 10-K (FY2025), MD&A

  3. 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. 4. Commercial growth

    Domestic commercial sales rose 6.7% in fiscal 2025.

    Evidence: Form 10-K (FY2025), MD&A

Weaknesses

  1. 1. Negative equity

    Shareholders' equity was −$3.4B at the end of fiscal 2025 because buybacks exceed retained earnings.

    Evidence: SEC EDGAR XBRL

  2. 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. 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. 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. 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

FigureWorst year-over-year changeBack to the prior level?
RevenueNo 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

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).

Impact
High
Med
2
13
Low
4
LowMedHigh

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.

  1. 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
  2. 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
  3. 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
  4. 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.