AutoZone Inc (AZO, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $3,796.95, AutoZone Inc has witnessed a daily loss of 0.43%, marked against a three-month change of 16.83%. A thorough analysis, underlined by the GF Score, suggests that AutoZone Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 4/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Each one of these components is ranked and the ranks also have a positive correlation with the long-term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high GF Score of 93 out of 100, AutoZone Inc signals the highest outperformance potential.
Understanding AutoZone Inc Business
AutoZone Inc operates as a leading retailer of aftermarket automotive parts in the United States. The firm operates more than 6,400 stores domestically, serving both the do-it-yourself and commercial (do-it-for-me) end markets. Through its vast store footprint and distribution network, AutoZone manages a wide array of stock-keeping units applicable to numerous vehicle makes and models, providing its consumers with ample product availability. The firm drives traffic by providing superior and convenient customer service as AutoZone's team of knowledgeable staff assists consumers with diagnosing a vehicle's problem, selecting the necessary part for replacement, and occasionally, installation. The company also operates internationally, with 800 stores in Mexico and more than 100 in Brazil.
Profitability Rank Breakdown
The Profitability Rank shows AutoZone Inc's impressive standing among its peers in generating profit. AutoZone Inc's Operating Margin has increased by 7.06% over the past five years, as shown by the following data: 2020: 19.14; 2021: 20.13; 2022: 20.13; 2023: 19.90; 2024: 20.49.
The Piotroski F-Score confirms AutoZone Inc's solid financial situation based on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding, and operating efficiency. AutoZone Inc's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, AutoZone Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 17.4%, which outperforms better than 78.18% of 1,054 companies in the Retail - Cyclical industry.
Moreover, AutoZone Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 18.4, and the rate over the past five years is 19.8. This trend accentuates the company's continued capability to drive growth.
Conclusion
AutoZone Inc's financial strength, profitability, and growth metrics, as highlighted by the GF Score, underscore the firm's unparalleled position for potential outperformance. With a strong market presence and a commitment to growth, AutoZone Inc is poised to continue its trajectory of success. For investors seeking companies with strong GF Scores, GuruFocus Premium members can explore more options using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
