# AutoZone, Inc. (AZO) — Stock CV

AutoZone, Inc. is a $47.5B consumer company. Revenue grew 7.4% over the last year, it keeps 13¢ of every dollar of sales as profit, and its net debt equals ~11.2 years of free cash flow. It trades at 18.7× earnings — in the cheapest third of its own history.

> Founded in 1979, AutoZone is the largest US-based retailer of aftermarket automotive parts and accessories, operating over 7,600 stores and generating roughly $18.9 billion in fiscal 2025 sales. Beyond its primary home market (88% of total revenue), the company also maintains a growing presence in Mexico and Brazil.

## Identity

- **Ticker**: AZO
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Auto & Home Supply Stores
- **Headquarters**: MEMPHIS, TN
- **Employees**: 130 000
- **Website**: https://www.autozone.com
- **Market cap**: $47.5B
- **Last price**: $2 936.00
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $20.3B
- **Net income**: $2.57B
- **Free cash flow**: $1.12B
- **Net debt**: $12.5B
- **P/E**: 18.7
- **Revenue growth (YoY)**: 7.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 65 |
| Growth | 42 |
| Profitability | 90 |
| Health | 42 |
| Quality | 70 |
| Moat | 95 |

## Qualifications (beginner checklist) — 9 of 10 passed

- [x] Revenue growing — +7.4% YoY
- [x] Profitable — $2.57B TTM
- [x] Profit growing — +4.8% YoY
- [x] Generates cash — $1.12B TTM
- [ ] Debt under control — ~11.2y of cash flow to repay
- [x] Established company — $47.5B market cap
- [x] Not printing shares — -26.0% shares over ~5y
- [x] Proven track record — 11/11 profitable years
- [x] Financially stable — Altman Z 2.7 — grey
- [x] Valuation not extreme — P/E 18.7

## Experience (career milestones)

- **FY2024** — Best year on record: $2.66B net income
- **2023** — After years functioning as a shared services center, DataZone was renamed to AutoZone Business and…
- **FY2016** — Profitable every year on record: 11 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $10.6B in first reported year
- **2014** — The company acquired Interamerican Motor Corporation, a distributor of imported replacement parts
- **2012** — AutoZone purchased AutoAnything.com, an e-commerce leader in aftermarket automotive parts based in…
- **2004** — AutoZone acquired 12 stores from ABC Discount Auto Parts, an auto parts chain headquartered in Cherry…
- **2003** — The Duralast tool line was introduced
- **1996** — The company launched its website
- **1986** — Auto Shack was spun off from Malone & Hyde, with Hyde and Formanek remaining in charge
- **1984** — Malone & Hyde was acquired in a management buyout that included Hyde, investment firm Kohlberg Kravis…
- **1979** — Founded in 1979, AutoZone has 7,140 stores across the United States, Mexico, Puerto Rico, Brazil
- **1979** — AutoZone, Inc., doing business as AutoZone (and formerly known as Auto Shack from 1979 to 1987), is an American…

## Strengths

- High gross margin (52.3%)
- Interest covered 7.9× by operating earnings
- High returns on invested capital (ROIC 25.6%)

## Watch-outs

- Net debt would take ~7.7 years of free cash flow to repay
- Net debt equals ~11.2 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $16.3B | $2.43B | $2.54B |
| FY2023 | $17.5B | $2.53B | $2.14B |
| FY2024 | $18.5B | $2.66B | $1.93B |
| FY2025 | $18.9B | $2.50B | $1.79B |
| FY2026 | $20.3B | $2.57B | — |

---

Source: https://stockcv.com/AZO — derived from company filings; may be delayed or incomplete. Information, not investment advice.