/
Retail-auto & home supply stores company · NV · FY ends Aug · Revenue $19.61B · 18.08% margin · $1.60B FCF
19.06% operating margin is respectable but not wide. ROIC at 34.86%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 2.4%, essentially flat. Margins also contracted 1.4pp. This is a business that needs a catalyst.
ROIC dropped from 42.42% to 34.86%, capital efficiency is deteriorating. Net debt of $12.31B represents 6.9x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$19.61B
▲ +2.4% YoY
Net Income (TTM)
$2.45B
▼ -6.2% YoY
Op. Margin
18.08%
▼ -1.4pp YoY
ROIC
23.71%
▼ -7.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.60B
▼ -7.3% YoY
Op. Cash Flow (TTM)
$3.04B
▲ +3.8% YoY
Net Debt
$12.13B
Cash & Equiv.
$285M
5Y CAGR: +8.4%
5Y CAGR: -4.6%
Continue Research