Latest Ratios: P/E Ratio 19.6x · EV/EBITDA 13.9x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $46.5B | $72.4B | $56.6B | $46.9B | $44.8B | $35.3B | $28.6B | $28.1B | $21.1B | $15.4B | $23.0B |
| Enterprise Value | $58.6B | $84.4B | $68.7B | $57.5B | $53.9B | $42.4B | $35.2B | $33.2B | $26.0B | $20.2B | $27.8B |
| P/E Ratio → | 19.63 | 28.98 | 21.27 | 18.54 | 18.46 | 16.27 | 16.53 | 17.37 | 15.80 | 12.00 | 18.51 |
| P/S Ratio | 2.46 | 3.82 | 3.06 | 2.68 | 2.76 | 2.41 | 2.27 | 2.37 | 1.88 | 1.41 | 2.16 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 26.00 | 40.45 | 29.33 | 21.86 | 17.66 | 12.19 | 12.66 | 17.21 | 13.56 | 15.12 | 21.10 |
| P/OCF | 14.93 | 23.23 | 18.85 | 15.94 | 13.97 | 10.03 | 10.53 | 13.20 | 10.16 | 9.79 | 14.56 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.46 | 3.72 | 3.29 | 3.32 | 2.90 | 2.79 | 2.80 | 2.31 | 1.86 | 2.61 |
| EV / EBITDA | 13.87 | 19.99 | 15.84 | 14.48 | 14.51 | 12.64 | 12.51 | 12.83 | 12.05 | 8.41 | 11.77 |
| EV / EBIT | 16.22 | 23.38 | 18.08 | 16.50 | 16.44 | 14.36 | 14.53 | 14.92 | 14.30 | 9.70 | 13.45 |
| EV / FCF | — | 47.16 | 35.57 | 26.83 | 21.22 | 14.62 | 15.56 | 20.32 | 16.67 | 19.88 | 25.49 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.6% | 52.6% | 53.1% | 52.0% | 52.1% | 52.8% | 53.6% | 53.7% | 53.2% | 52.7% | 52.7% |
| Operating Margin | 19.1% | 19.1% | 20.5% | 19.9% | 20.1% | 20.1% | 19.1% | 18.7% | 16.1% | 19.1% | 19.4% |
| Net Profit Margin | 13.2% | 13.2% | 14.4% | 14.5% | 14.9% | 14.8% | 13.7% | 13.6% | 11.9% | 11.8% | 11.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | — |
| ROA | 13.7% | 13.7% | 16.1% | 16.2% | 16.3% | 15.0% | 14.3% | 16.8% | 14.4% | 14.3% | 14.9% |
| ROIC | 34.0% | 34.0% | 41.7% | 44.2% | 45.6% | 40.4% | 40.1% | 49.7% | 40.4% | 48.8% | 53.5% |
| ROCE | 39.5% | 39.5% | 47.5% | 49.1% | 47.3% | 38.5% | 38.6% | 50.9% | 41.1% | 49.5% | 56.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 2.91 | 2.91 | 2.85 | 2.75 | 2.50 | 2.45 | 2.95 | 2.03 | 2.35 | 2.13 | 2.11 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 2.85 | 2.85 | 2.78 | 2.68 | 2.43 | 2.11 | 2.33 | 1.97 | 2.25 | 2.01 | 2.03 |
| Debt / FCF | — | 6.71 | 6.25 | 4.97 | 3.56 | 2.44 | 2.90 | 3.12 | 3.11 | 4.76 | 4.39 |
| Interest Coverage | 7.42 | 7.42 | 8.25 | 11.04 | 16.88 | 14.97 | 11.86 | 11.70 | 10.21 | 13.37 | 13.91 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.88 | 0.88 | 0.84 | 0.80 | 0.77 | 0.87 | 1.08 | 0.91 | 0.92 | 0.97 | 0.90 |
| Quick Ratio | 0.14 | 0.14 | 0.13 | 0.12 | 0.12 | 0.24 | 0.37 | 0.13 | 0.14 | 0.15 | 0.13 |
| Cash Ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.16 | 0.28 | 0.03 | 0.04 | 0.06 | 0.04 |
| Asset Turnover | — | 0.98 | 1.08 | 1.09 | 1.06 | 1.01 | 0.88 | 1.20 | 1.20 | 1.18 | 1.24 |
| Inventory Turnover | 1.28 | 1.28 | 1.41 | 1.45 | 1.38 | 1.49 | 1.31 | 1.27 | 1.33 | 1.33 | 1.38 |
| Days Sales Outstanding | — | 12.92 | 10.77 | 10.88 | 11.34 | 9.44 | 10.54 | 9.51 | 8.40 | 9.41 | 9.87 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 3.5% | 4.7% | 5.4% | 5.4% | 6.1% | 6.0% | 5.8% | 6.3% | 8.3% | 5.4% |
| FCF Yield | 3.8% | 2.5% | 3.4% | 4.6% | 5.7% | 8.2% | 7.9% | 5.8% | 7.4% | 6.6% | 4.7% |
| Buyback Yield | 3.4% | 2.2% | 5.5% | 7.9% | 9.7% | 9.6% | 3.2% | 7.1% | 7.5% | 7.0% | 6.3% |
| Total Shareholder Yield | 3.4% | 2.2% | 5.5% | 7.9% | 9.7% | 9.6% | 3.2% | 7.1% | 7.5% | 7.0% | 6.3% |
| Shares Outstanding | — | $17M | $18M | $19M | $21M | $23M | $24M | $25M | $27M | $29M | $30M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying AZO stock.
AutoZone, Inc.'s current P/E ratio is 19.6x. The historical average is 17.2x. This places it at the 80th percentile of its historical range.
AutoZone, Inc.'s current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
Based on historical data, AutoZone, Inc. is trading at a P/E of 19.6x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AutoZone, Inc. has 52.6% gross margin and 19.1% operating margin. Operating margin between 10-20% is typical for established companies.
AutoZone, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Commercial segment margin dilution
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Capital Efficiency
According to current market data, AutoZone trades at a forward P/E of 20.67, which suggests investors are pricing in the company's superior capital return profile compared to peers like Advance Auto Parts, despite the inherent risks associated with its aggressive share repurchase strategy and negative equity position.
The current valuation multiple appears to reflect a market premium for the company's consistent ability to drive EPS growth through share cannibalization rather than pure organic expansion. Investors should monitor whether this valuation remains sustainable if the shift toward lower-margin commercial business continues to compress overall profitability metrics.
Capital Returns Masked by Repurchases
Based on reported financial statements, AutoZone's ROIC has fluctuated between 5.6% and 13.4% over the last ten quarters, a trend that warrants further investigation as the company's aggressive share buyback program consistently pushes stockholders' equity into negative territory, rendering traditional return-on-equity metrics largely uninformative for fundamental analysis.
The volatility in ROIC suggests that while the hub-and-spoke model is operationally efficient, the company's capital allocation strategy creates significant noise in return metrics. Analysts should focus on ROIC as the primary gauge of operational success, as it better captures the underlying productivity of the store network than equity-based ratios.
Inventory Financing Drives Working Capital
As indicated by the latest quarterly data, AutoZone maintains a negative cash conversion cycle, with days payable outstanding consistently exceeding days inventory outstanding, which suggests the company effectively utilizes vendor financing to fund its inventory growth rather than relying on its own internal cash reserves.
This structural reliance on supplier terms implies that the company's liquidity is highly sensitive to vendor relationships and supply chain stability. Any disruption in these terms could force a rapid shift in working capital requirements, potentially impacting the company's ability to maintain its aggressive share repurchase pace.
Debt Service Comfort Remains Stable
According to recent financial filings, AutoZone's interest coverage ratio has remained between 6.52 and 8.62 over the last ten quarters, suggesting that despite a significant debt load and negative equity, the company maintains a comfortable buffer to service its obligations under current operating conditions.
While the leverage appears manageable, the lack of a positive equity base leaves little room for error should operating cash flows face a sustained downturn. Investors should monitor the D/EBITDA ratio, which has shown volatility, as it serves as a key indicator of the company's ability to sustain its debt-funded capital return model.
Misapplication of Return on Equity
The most commonly misapplied metric for AutoZone is Return on Equity (ROE), which is rendered fundamentally misleading by the company's persistent negative stockholders' equity resulting from years of aggressive share repurchases, thereby obscuring the true underlying profitability of the firm's core retail and distribution operations.
Analysts should instead prioritize Return on Invested Capital (ROIC) or Operating Margin trends to assess the company's performance. Relying on ROE in this context may lead to erroneous conclusions regarding the company's financial health, as the metric fails to account for the structural distortion caused by the company's unique capital allocation strategy.