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Introduction AutoZone, Inc. ( AutoZone, the Company, we, our or us ) is a leading retailer and distributor of automotive replacement parts and accessories in the Americas. We began operations in 1979 and at August 30, 2025, operated 6,627 stores in the United States ( U.S. ), 883 stores in Mexico and 147 stores in Brazil.
$2,997.97
$48.47 (-1.59%)
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19.06% operating margin is respectable but not wide. ROIC at 23.58%. 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 26.19% to 23.58%, capital efficiency is deteriorating. Net debt of $12.31B represents 6.9x FCF, leverage limits flexibility.
20.6x earnings, 30.9x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$19.99B
▲ +2.4% YoY
Net Income (TTM)
$2.48B
▼ -6.2% YoY
Op. Margin
18.02%
▼ -1.4pp YoY
ROIC
23.76%
▼ -2.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.63B
▼ -7.3% YoY
Op. Cash Flow (TTM)
$3.07B
▲ +3.8% YoY
Net Debt
$12.38B
Cash & Equiv.
$254M
5Y CAGR: +8.4%
5Y CAGR: -4.6%
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At a P/E of 20.6 and a price-to-free-cash-flow of 30.9, AutoZone (AZO) trades above a two-stage DCF intrinsic value of about $945.01 per share, so at $2,997.97 the stock looks overvalued (68.5% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, AutoZone scores 45/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $945.01 per share for AZO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $708.76. At today's $2,997.97, that puts the stock about 68.5% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
AutoZone scores 45 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 18.0% operating margin and a 23.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. AZO currently trades above its estimated intrinsic value and scores 45/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.