Up More Than 25% in the Past Year, Is AutoZone Stock a Buy?

AutoZone, Inc. (AZO), a leading retailer and distributor of automotive replacement parts and accessories, has seen its stock skyrocket in the past year, rising more than 25%. With the company’s impressive performance and strong fundamentals, many investors are asking: is AutoZone stock a buy?

The answer to that question may depend on a number of factors, including the investor’s risk tolerance, investing time horizon, and individual investment goals. That said, a closer examination of AutoZone’s financials paints a compelling picture of a company that has been able to consistently deliver shareholder value over the past several years.

AutoZone’s financial performance has been nothing short of stellar. Over the past twelve months, the company reported total sales of $11.2 billion, an impressive increase of 8.9% year-over-year. In addition, earnings per share (EPS) were up 8.6% to a record $30.00, net income was up 10.1% to a record $1.3 billion, and operating margin expanded to 14.3%, a full percentage point higher than the prior year.

Looking ahead, AutoZone should continue to benefit from its focus on cost control and efficiency. The company has a long track record of generating positive free cash flow, which has enabled it to return capital to shareholders via stock buybacks and dividends. AutoZone currently yields a dividend of 1.9%, which is well above the industry average.

Overall, AutoZone’s fundamentals indicate that the stock is a strong buy for investors looking for a reliable and consistent source of income. The company’s impressive financial performance and efficient capital management strategy have positioned it well for future growth.