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What do the Fundamentals Predict for Autozone Inc (AZO) Stock?

Wednesday, July 06, 2022 03:01 PM | InvestorsObserver Analysts
What do the Fundamentals Predict for Autozone Inc (AZO) Stock?

Autozone Inc (AZO) receives a strong valuation score of 63 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. AZO holds a better value than 63% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 63
AZO gets a 63 Valuation Rank today. Find out what this means to you and get the rest of the rankings on AZO!

Metrics Analysis

AZO has a trailing twelve month Price to Earnings (PE) ratio of 19.2 which places it around the histroical average of roughly 15. AZO is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. AZO's trailing-12-month earnings per share (EPS) of 112.41 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
AZO's 12-month-forward PE to Growth (PEG) ratio of 1.63 is considered a poor value as the market is overvaluing AZO in relation to the company's projected earnings growth due. AZO's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.


AZO's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. AZO's PE and PEG are worse than the market average resulting in a below average valuation score. Click Here to get the full Report on Autozone Inc (AZO) stock.

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