AutoZone, Inc. (AZO) is a publicly traded company in the Consumer Cyclical — Specialty Retail industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
AutoZone, Inc. operates as a leading retailer and distributor specializing in automotive replacement parts and accessories. The company's comprehensive inventory caters to a diverse range of vehicles, including cars, sport utility vehicles, vans, and light trucks. Their product offerings encompass both new and remanufactured critical hard parts, essential maintenance items, various accessories, and a selection of non-automotive goods.
Is AutoZone, Inc. stock overvalued or undervalued in 2026?
AutoZone, Inc. (AZO) trades at 20.8× earnings (P/E), above the median of the 209 consumer cyclicals companies over $2bn in Kaplio's universe. At the decade median (20.2×) $3,082 (-3 %); at its sector median (17.9×) $2,725 (-14 %).
Kaplio overview: AutoZone, Inc.
Market cap $51B · 52 weeks $2,792 – $3,968 (21 % below the high) · P/E 20.8× · 2027 expected P/E 18.7× · Dividend none · Next earnings December 8, 2026 · expected EPS $35.41 · Closing price, Oct 30 · accounts published Sep 22.
- Valuation: P/E 20.8× (fairly priced).
- Business: 5-year ROIC 31.8 % (excellent).
- Balance sheet: Net debt/EBITDA 3.3× (watch).
- Earnings: 3 of 8 (disappointing).
What would it be worth at its usual multiples?
At the decade median (20.2×) $3,082 (-3 %); at its sector median (17.9×) $2,725 (-14 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer cyclicals: 5 of 8 pass
- Inventory turnover 1.3×, fails.
- Current Ratio 0.90, fails.
- Net debt / EBITDA 3.3×, borderline.
- 5y avg operating margin 19.6 %, passes.
- 5y avg ROIC 31.8 %, passes.
- Altman Z-Score 2.7, passes.
- P/E read in reverse (cyclicals) 20.8×, passes.
- EV/Sales vs history 3.0×, passes.
Against its peers (reference peers) — AutoZone, Inc.: P/E 20.8×; EV/EBITDA 15.4×; ROIC 24.1 %; $51.0B. O'Reilly Automotive, Inc. (P/E 27.0×; EV/EBITDA 20.0×; ROIC 33.4 %; $71.3B), Advance Auto Parts, Inc. (P/E 32.9×; EV/EBITDA 6.6×; ROIC 3.5 %; $2.7B), Genuine Parts Company (P/E —; EV/EBITDA 30.8×; ROIC -20.7 %; $16.7B).
Expensive or cheap against its last ten years?
P/E at each close: today 20.8× · median 20.2× · minimum 11.2× · maximum 28.1× · cheap below 17.9× · expensive above 22.6×. It has been cheaper than today 59% of the time over its last ten years.
Kaplio's reading: AutoZone, Inc.
Updated on October 13, 2026 · accounts published on September 22, 2026
Reading of October 12, 2026: A highly profitable business with steady margins and a stretched balance sheet
AutoZone trades at a P/E of 19.0× over the last 12 months, 5 % below its ten-year median of 20.1× but 9 % above its sector median of 17.5×.
- Is AutoZone expensive or cheap? AutoZone's P/E of 19.0× is 5 % below its ten-year median and 9 % above its sector median.
- How is the business doing? AutoZone's ROIC of 25 % over the last 12 months is 15.5 points above its sector median, with revenue up 7 %.
- How strong is the balance sheet, and could it handle a recession? AutoZone's net debt was 2.8× EBITDA in fiscal 2025, just under the 3× ceiling considered healthy for cyclicals.
- What to expect from the next earnings? Analysts expect EPS of $35.54 on December 8, 2026, and the 2027 EPS consensus has fallen 2.4 % in 28 days.
Is AutoZone expensive or cheap?
Over the last 12 months AutoZone trades at a P/E of 19.0×, against a ten-year median of 20.1× and a decade range of 11.2× to 28.1×. It has traded at a lower P/E only 38 % of the time over the last decade, which puts today's multiple in the middle of its own history. Against a sector median of 17.5× it carries a 9 % premium. Other measures look less favourable. EV/sales of 4.4× in fiscal 2025 is well above its ten-year average of 2.9×, and the free cash flow yield is a thin 2.9 %. The share price is 29 % below its 52-week high of $4,097.97, but on earnings the stock is only slightly below its own norm.
How is the business doing?
Over the last 12 months revenue rose 7.4 % and EPS 5.3 %. That is steady growth, not spectacular. The operating margin of 18.3 % is slightly below the fiscal 2014-2025 average of 19.2 %, so profitability is holding close to its long-run level. Returns on capital are the standout. ROIC of 24.7 % is 15.5 points above the sector median of 9.2 %, and it has stayed above 10 % in each of the last 10 fiscal years. The five-year average of 33.1 % easily clears the 12 % that cyclicals need to count as healthy. The weak spot is inventory turnover of 1.3× in fiscal 2025, far below the 4× the sector treats as healthy, so a lot of capital is tied up in stock.
How strong is the balance sheet, and could it handle a recession?
Cyclical companies can see sales fall quickly in a recession. That is why this sector checks debt, liquidity and distress scores instead of profits alone. AutoZone's net debt of $744.76 per share in fiscal 2025 equals 26 % of the current share price and 2.8× EBITDA, which passes the 3× threshold but only just. The current ratio of 0.90 over the last 12 months is below the 1.5 the sector considers healthy, so current liabilities exceed current assets. An Altman Z of 2.7 puts the company in the grey zone between 1.81 and 2.99, and its Piotroski score is 5 of 9. High returns on capital support the debt, with little room to spare.
What to expect from the next earnings?
AutoZone reports next on December 8, 2026, and analysts expect EPS of $35.54 for the quarter. On September 22, 2026 it posted EPS of $56.05 against $54.08 expected, a 3.6 % beat. Even so, it has beaten estimates in only 3 of the last 8 quarters. Expectations are drifting lower. Over the last 28 days the 2027 EPS consensus slipped 2.4 %, from $174.86 to $170.69 across 20 analysts, and the 2027 revenue estimate fell 0.7 %. Analysts remain positive: 32 of 45 recommend buying, 12 recommend holding and none recommend selling. Going into December, the direction of these estimate cuts is the figure to watch.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve AutoZone today?
The Buffett Method approves AutoZone today: it yields 6.4% before tax; it asks for 10%. Business quality: 80 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve AutoZone today?
The Lynch Method would wait for a better price for AutoZone. Business quality: 41 out of 100 (price not included). Lynch classifies it as a slow grower. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | -90.08% |
| Return on Invested Capital | 24.07% |
| Return on Assets | 11.89% |
| Gross Margin | 52.34% |
| Operating Margin | 18.31% |
| Net Margin | 12.65% |
Financial Health
| Debt / Equity | -5.26 |
| Current Ratio | 0.90 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 2.67 |
Price Performance
| 1 month | +11.28% |
| 3 months | +4.00% |
| Year-to-date | -7.50% |
| 1 year | -14.63% |
| 3 years | +25.95% |
| 5 years | +76.29% |
| 10 years | +325.06% |
Related companies: ORLY · DORM · GPC · AAP
Explore sector: Consumer Cyclical · Specialty Retail
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