Autozone Profitability Analysis

AZO -  USA Stock  

USD 2,159  50.27  2.38%

For Autozone profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Autozone to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Autozone utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Autozone's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Autozone over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
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Autozone Price to Sales Ratio is quite stable at the moment as compared to the past year. The company's current value of Price to Sales Ratio is estimated at 2.34. Return on Sales is expected to rise to 0.21 this year, although the value of Sales per Share will most likely fall to 465.81. Autozone Operating Income is quite stable at the moment as compared to the past year. The company's current value of Operating Income is estimated at 2.34 Billion. Income Tax Expense is expected to rise to about 443.6 M this year, although the value of Accumulated Other Comprehensive Income will most likely fall to (290.6 M).

Autozone Revenues

12.42 Billion

Share
Is Autozone's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Autozone. If investors know Autozone will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Autozone listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.096
Market Capitalization
42.1 B
Quarterly Revenue Growth YOY
0.059
Return On Assets
0.14
The market value of Autozone is measured differently than its book value, which is the value of Autozone that is recorded on the company's balance sheet. Investors also form their own opinion of Autozone's value that differs from its market value or its book value, called intrinsic value, which is Autozone's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Autozone's market value can be influenced by many factors that don't directly affect Autozone's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Autozone's value and its price as these two are different measures arrived at by different means. Investors typically determine Autozone value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Autozone's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Autozone Beta vs. Market Capitalization Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Autozone's current stock value. Our valuation model uses many indicators to compare Autozone value to that of its competitors to determine the firm's financial worth.
Autozone is number one stock in market capitalization category among related companies. It is number one stock in beta category among related companies . The ratio of Market Capitalization to Beta for Autozone is about  45,576,086,957 . Autozone Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 26.14 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Autozone by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Autozone's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Autozone's earnings, one of the primary drivers of an investment's value.

Autozone Market Capitalization vs. Competition

Autozone is number one stock in market capitalization category among related companies. Market capitalization of Specialty Retail industry is presently estimated at about 2.19 Trillion. Autozone claims roughly 41.93 Billion in market capitalization contributing just under 2% to equities listed under Specialty Retail industry.
Capitalization  Workforce  Revenue  Valuation  Total debt

Autozone Beta vs. Market Capitalization

Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Autozone 
Market Cap 
 = 
Shares Outstanding 
X  
Share Price 
41.93 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Autozone 
Beta 
 = 
Covariance 
Variance 
0.92
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Autozone Beta Comparison

Autozone is currently under evaluation in beta category among related companies.

Autozone Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Autozone, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Autozone will eventually generate negative long term returns. The profitability progress is the general direction of Autozone's change in net profit over the period of time. It can combine multiple indicators of Autozone, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-269.3 M-290.6 M
Consolidated Income1.6 B1.6 B
Net Income1.6 B1.6 B
Net Income Common Stock1.6 B1.6 B
Operating Income2.2 B2.3 B
Income Tax Expense414.1 M443.6 M
Net Income Per Employee16.6 K15.1 K
AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company was founded in 1979 and is based in Memphis, Tennessee. Autozone operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 65100 people.

Autozone Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Autozone. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Autozone position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Autozone's important profitability drivers and their relationship over time.

Autozone Profitability Trends

Autozone profitability trend refers to the progression of profit or loss within a business. An upward trend means that Autozone's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Autozone's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Autozone Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Autozone different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Autozone in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Autozone's future profitability.

Use Autozone in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Autozone position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Autozone will appreciate offsetting losses from the drop in the long position's value.

Autozone Pair Trading

Autozone Pair Trading Analysis

The ability to find closely correlated positions to Autozone could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Autozone when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Autozone - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Autozone to buy it.
The correlation of Autozone is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Autozone moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Autozone moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Autozone can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Autozone position

In addition to having Autozone in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Top FinTech
Top FinTech Theme
High long term potential financial entities that are ranging from payment processing, investment management to commercial and investment banking. The Top FinTech theme has 80 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Top FinTech Theme or any other thematic opportunities.
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Please continue to Trending Equities. Note that the Autozone information on this page should be used as a complementary analysis to other Autozone's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running Autozone price analysis, check to measure Autozone's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Autozone is operating at the current time. Most of Autozone's value examination focuses on studying past and present price action to predict the probability of Autozone's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Autozone's price. Additionally, you may evaluate how the addition of Autozone to your portfolios can decrease your overall portfolio volatility.
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To fully project Autozone's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Autozone at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Autozone's income statement, its balance sheet, and the statement of cash flows.
Potential Autozone investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Autozone investors may work on each financial statement separately, they are all related. The changes in Autozone's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Autozone's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.