AZO changes
Pick any two versions below to diff them.
- Price
- $2815.30 → $2872.16(+2.0%)
- Thesis
- AutoZone buys back about 8% of its shares every year. This shrinking share count removed: is the main reason profit per share has grown for years. The company borrows money to fund part added: drives most of removed: this buyback. added: its profit-per-share growth. The market removed: may be underestimating added: doubts how long this removed: buyback pace can continue. removed: If added: AutoZone borrows money to fund part of the buyback. Net debt already sits above its own target range. For the discount to close, store sales added: must keep removed: growing and added: growing. Cash flow must also catch up to the buyback pace, so debt removed: stays stable, added: does not keep rising against earnings. The board added $1.5 billion to the buyback removed: can continue, added: authorization in June 2026, a sign it still wants to keep this pace. Q4 fiscal 2026 results, reported September 22, 2026, showed sales up 5.6% and removed: profit per share keeps compounding. This added: expanding margins, a good sign for the buyback. The next quarterly report is expected around December 22, 2026. If sales growth and cash flow both hold up over the next two to three quarters, the discount can removed: close added: close. If debt keeps rising faster than cash flow, AutoZone may need to slow the removed: discount. added: buyback, and the discount could persist.
- Recent events
- Sep 22, 2026: AutoZone removed: is due to report its next added: reported Q4 fiscal 2026 results removed: (Q4 FY2026) on this removed: date. added: date: net sales of $6.6 billion, up 5.6%, and diluted EPS of $56.05, above the $54.08 analysts expected. Jun added: 16, 2026: AutoZone's board approved an additional $1.5 billion for share repurchases, bringing total authorized buybacks since 1998 to $42.2 billion. Jun 1, 2026: AutoZone's most recent quarter: sales grew 8.4%. Operating profit (EBIT) grew 6.6%. EBIT grew slower than sales, so the operating margin fell slightly.