AutoZone, Inc. (AZO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

AutoZone, Inc. (AZO) Consumer Business Overview

AutoZone, Inc. is a dominant player in the automotive aftermarket, providing a wide array of parts and accessories across the United States, Mexico, and Brazil. With a focus on both retail and commercial customers, AutoZone leverages its extensive store network and growing online presence to maintain a strong market position.

What Is the Investment Thesis for AZO?

With a market capitalization of $47.0B and a profit margin of 12.5%, the company demonstrates financial stability. The company's high gross margin of 51.9% indicates efficient cost management and strong pricing power. Key growth catalysts include the expansion of its store network in Mexico and Brazil, as well as the continued growth of its commercial sales program. The company's P/E ratio of 19.32 reflects investor confidence in its future earnings potential. However, potential risks include increased competition from online retailers and fluctuations in consumer spending on automotive maintenance. AutoZone's beta of 0.41 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

AZO Key Highlights

Market capitalization of $47.0B, reflecting substantial investor confidence.

• Profit margin of 12.5%, indicating efficient operations and profitability.
• Gross margin of 51.9%, showcasing strong pricing power and cost management.
• Operates 6,066 stores in the United States as of November 20, 2021, demonstrating a significant retail presence.
• Presence in Mexico (666 stores) and Brazil (53 stores) provides geographic diversification and growth opportunities.

Who Are AZO's Competitors?

AZO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are AZO's Key Strengths?

Extensive store network across the United States, Mexico, and Brazil.

• Strong brand recognition and customer loyalty.
• Commercial sales program catering to professional mechanics.
• ALLDATA brand providing valuable diagnostic and repair information.

What Are AZO's Weaknesses?

Exposure to fluctuations in consumer spending on automotive maintenance.

• Dependence on the automotive industry and economic conditions.
• Potential for increased competition from online retailers.
• Limited presence in emerging markets outside of Mexico and Brazil.

What Could Drive AZO Stock Higher?

Expansion of store network in Mexico and Brazil, driving revenue growth in emerging markets.

• Growth of commercial sales program, increasing revenue from professional mechanics.
• Enhancement of online presence and e-commerce capabilities, attracting more customers and driving online sales.
• Introduction of new and innovative products, such as electric vehicle (EV) parts and accessories, capturing a share of the growing EV market.
• Strategic acquisitions to expand market share and product offerings.

What Are the Key Risks for AZO?

Negative return on equity (-80.4%) — the business is not currently generating profit on shareholder capital.

• Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.
• Increased competition from online retailers such as Amazon, eroding market share and pricing power.
• Economic downturns affecting consumer spending on automotive maintenance, reducing demand for automotive parts and accessories.
• Changes in automotive technology and the shift towards electric vehicles, requiring investments in new products and technologies.
• Supply chain disruptions and rising costs of goods, impacting profitability.
• Regulatory changes affecting the automotive industry, such as stricter emissions standards.

What Are the Growth Opportunities for AZO?

• Expansion in Mexico and Brazil: AutoZone has significant growth potential in Mexico and Brazil, where the automotive aftermarket is less developed compared to the United States. As of November 20, 2021, AutoZone operated 666 stores in Mexico and 53 stores in Brazil. Increasing the store count in these regions can drive revenue growth and market share. The growing middle class and increasing vehicle ownership in these countries present a substantial market opportunity. The timeline for expansion is ongoing, with plans to open new stores each year.
• Growth of Commercial Sales Program: AutoZone's commercial sales program, which provides credit and delivery services to professional repair shops, is a key growth driver. Expanding this program by offering more services and products can increase revenue and customer loyalty. The market for commercial automotive parts and services is substantial, with professional mechanics relying on reliable suppliers for their parts needs. The timeline for expanding this program is ongoing, with continuous improvements and enhancements to the service offerings.
• Enhancing Online Presence: AutoZone can further enhance its online presence through its website, autozone.com, and its ALLDATA brand. Improving the user experience, expanding the product selection, and offering online ordering with in-store pickup can attract more customers and drive online sales. The e-commerce market for automotive parts and accessories is growing rapidly, and AutoZone can capitalize on this trend. The timeline for enhancing its online presence is ongoing, with continuous updates and improvements to its online platforms.
• Product Innovation and Expansion: AutoZone can drive growth by introducing new and innovative products, such as electric vehicle (EV) parts and accessories. As the adoption of EVs increases, the demand for EV-related automotive parts will also grow. AutoZone can position itself as a leader in this emerging market by offering a wide range of EV parts and accessories. The timeline for product innovation and expansion is ongoing, with continuous research and development efforts.
• Strategic Acquisitions: AutoZone can pursue strategic acquisitions to expand its market share and product offerings. Acquiring smaller automotive parts retailers or suppliers can provide access to new markets and technologies. Strategic acquisitions can also help AutoZone consolidate its position in the highly competitive automotive aftermarket. The timeline for strategic acquisitions is opportunistic, with potential deals being evaluated on an ongoing basis.

What Are AZO's Competitive Advantages?

• Extensive store network provides convenient access to automotive parts and accessories.
• Strong brand recognition and customer loyalty.
• Commercial sales program offers a competitive advantage in serving professional mechanics.
• ALLDATA brand provides a valuable resource for automotive diagnostic and repair information.

What Does AZO Do?

Founded in 1979 in Memphis, Tennessee, AutoZone, Inc. has grown to become a leading retailer and distributor of automotive replacement parts and accessories in the Americas. The company's extensive product range caters to cars, sport utility vehicles, vans, and light trucks, encompassing both new and remanufactured automotive hard parts, maintenance items, and accessories. AutoZone's evolution has been marked by strategic expansion, both geographically and in terms of product offerings. The company operates over 6,000 stores in the United States, over 600 stores in Mexico, and over 50 stores in Brazil as of November 20, 2021. AutoZone serves a diverse customer base, including retail consumers and professional mechanics. Its product portfolio includes a wide variety of essential automotive components, such as A/C compressors, batteries, brakes, engines, and filters, as well as accessories like air fresheners, cell phone accessories, and tools. The company also offers a commercial sales program that provides credit and delivery services to professional repair shops. Additionally, AutoZone provides automotive diagnostic and repair software through its ALLDATA brand, accessible via alldata.com and alldataiy.com, and sells products through its online platform, autozone.com. AutoZone's commitment to customer service and product availability has solidified its position in the highly competitive automotive aftermarket.

What Products and Services Does AZO Offer?

• Retails automotive replacement parts and accessories.
• Distributes automotive parts to retail customers and professional mechanics.
• Offers new and remanufactured automotive hard parts.
• Provides maintenance items and accessories for cars, trucks, and SUVs.
• Sells automotive diagnostic and repair software through the ALLDATA brand.
• Operates a commercial sales program with credit and delivery services.

How Does AZO Make Money?

• Sells automotive parts and accessories through its retail stores.
• Generates revenue from its commercial sales program.
• Provides subscription-based access to automotive diagnostic and repair software.
• Sells products through its online platform, autozone.com.

What Industry Does AZO Operate In?

AutoZone operates in the automotive aftermarket industry, which is characterized by stable demand driven by the increasing age of vehicles on the road and the growing complexity of automotive technology. The industry is moderately competitive, with key players including O'Reilly Automotive and Advance Auto Parts. The market is also seeing increased competition from online retailers such as Amazon. AutoZone's extensive store network and strong brand recognition provide a competitive advantage in this landscape. The automotive aftermarket is expected to continue growing, driven by the increasing vehicle parc and rising disposable incomes in emerging markets like Mexico and Brazil.

Who Are AZO's Key Customers?

• Retail consumers who need automotive parts and accessories for their vehicles.
• Professional mechanics and repair shops.
• Commercial customers who require credit and delivery services.

Company Profile

AutoZone, Inc. operates in the Auto Parts industry within the Consumer Cyclical sector. It is headquartered in Memphis, United States.

AutoZone, Inc. Financial Trajectory

AutoZone, Inc. (AZO) reported $4.84B in revenue for Q3 FY2026, reflecting 13.3% growth compared to the prior quarter. The company recorded net income of $641.5M, with diluted EPS of $38.07. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Cyclical. Across the four most recent quarters, AZO averaged $36.31 in diluted EPS.

How AutoZone, Inc. Is Valued

AutoZone, Inc. carries a market capitalization of $47.0B, placing it in the large-cap category. Analyst price targets span from $3200.00 to $4023.00, with a consensus of $3713.20. At the current price of $2881.47, that implies approximately 29% upside potential. Relative to its peer group, AZO's quantitative score of 65/100 is roughly in line with the peer average of 60/100.

Return on equity for AutoZone, Inc. stands at -80.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 12.7%, showing how much profit it generates from its asset base. AZO trades at a trailing price-to-earnings ratio of 19.32, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 2.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.89 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.9%, the inverse of the P/E and a quick read on earnings relative to price.

AutoZone, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.41 places it in the grey zone, a middle ground that warrants monitoring.

AutoZone, Inc. has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 2.9% below estimates on average.

Over the past six months, AutoZone, Inc. insiders filed 18 SEC Form 4 transactions — 4 sales and 14 purchases. On net that is roughly 675 shares acquired (about $1.8M) — insiders putting money in tends to read as conviction.

AZO Financials

Next earnings report: Sep 22, 2026

AZO earnings history & estimates →

AZO Latest News

AZO Analyst Consensus

AZO MoonshotScore

AZO Consumer Cyclical Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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