AZOAutoZone
Is the business good?
The checks split: earnings fully cash-backed (1.1×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AZO?
AutoZone earns 48% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 39 points above what the capital costs: growth creates value
- Operating margin
- 18%
Operating margin · Auto Parts median 5.8% · 12 months to Q3 2026
- Cash conversion
- 1.08×
Cash conversion · 1.10× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 20% |
| FY2022 | 20% |
| FY2023 | 20% |
| FY2024 | 20% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q3 2026
- 52%
- Operating margin12 months to Q3 2026
- 18%
- Net margin12 months to Q3 2026
- 12%
- Free cash flow margin
- 8.2%
- Revenue, trailing twelve months
- $20.0B
- Free cash flow, trailing twelve months
- $1.63B
- Net income, trailing twelve months
- $2.48B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 48%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Auto Parts
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