AutoZone Stock To $2447?

AutoZone (AZO) stock has fallen 7.2% during the past day, and is currently trading at $3,496.77. Our multi-factor assessment suggests that it may be time to sell AZO stock. We have, overall, a pessimistic view of the stock, and a price of $2447 may not be out of reach. We believe there is a near-equal mix of good and bad in AZO stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $58 Bil in market cap, AutoZone provides automotive replacement parts and accessories, including compressors, batteries, bearings, belts, and engines, operating over 6,700 stores across the United States, Mexico, and Brazil.

[1] Valuation Looks High

This table highlights how AZO is valued vs broader market. For more details see: AZO Valuation Ratios

[2] Growth Is Weak

• AutoZone has seen its top line grow at an average rate of 5.3% over the last 3 years
• Its revenues have grown 2.4% from $18 Bil to $19 Bil in the last 12 months
• Also, its quarterly revenues grew 0.6% to $6.2 Bil in the most recent quarter from $6.2 Bil a year ago.

This table highlights how AZO is growing vs broader market. For more details see: AZO Revenue Comparison

[3] Profitability Appears Moderate

• AZO last 12 month operating income was $3.6 Bil representing operating margin of 19.1%
• With cash flow margin of 16.5%, it generated nearly $3.1 Bil in operating cash flow over this period
• For the same period, AZO generated nearly $2.5 Bil in net income, suggesting net margin of about 13.2%

This table highlights how AZO profitability vs broader market. For more details see: AZO Operating Income Comparison

[4] Financial Stability Looks Strong

• AZO Debt was $12 Bil at the end of the most recent quarter, while its current Market Cap is $58 Bil. This implies Debt-to-Equity Ratio of 17.1%
• AZO Cash (including cash equivalents) makes up $272 Mil of $19 Bil in total Assets. This yields a Cash-to-Assets Ratio of 1.4%

[5] Downturn Resilience Is Strong

AZO has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• AZO stock fell 21.4% from a high of $2,254.03 on 20 April 2022 to $1,771.68 on 20 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 12 August 2022
• Since then, the stock increased to a high of $4,354.54 on 11 September 2025 , and currently trades at $3,496.77

 
2020 Covid Pandemic

• AZO stock fell 39.3% from a high of $1,191.31 on 1 January 2020 to $723.22 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 30 July 2020

 
2008 Global Financial Crisis

• AZO stock fell 36.9% from a high of $141.13 on 3 September 2008 to $89.09 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 6 February 2009

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read AZO Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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