Added to YB: 2026-10-01
Pitch date: 2026-09-26
AZO [bullish]
AutoZone, Inc.
+6.29%
current return
Author Info
No bio for this author
Company Info
AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil.
Market Cap
$45.2B
Pitch Price
$2.9K
Price Target
N/A
Dividend
N/A
EV/EBITDA
11.91
P/E
18.30
EV/Sales
2.84
Sector
Specialty Retail
Category
value
$AZO write-up
AZO: AutoZone’s 34% drawdown and lower ROIC may reflect a capital-intensive investment cycle rather than deteriorating store economics, but whether this is a J-curve or structural decline remains unresolved. Record openings are the main ROIC drag, while free cash flow held near $1.8B. At 19x earnings, 28% long-run ROIC and 10% EPS growth support a more realistic 23-24x multiple and roughly 25% potential alpha; weak DIY traffic and eroding vendor financing could make part of the decline permanent.
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