AutoZone is a retailer and distributor of automotive replacement parts and accessories in the United States. The company offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The company was founded in 1979 and is based in Memphis, Tennessee.
AZO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Autozone Inc. To summarize, we found that Autozone Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for AZO, they are:
The company has produced more trailing twelve month cash flow than 92.03% of its sector Consumer Cyclical.
Autozone Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 19.85% of tickers in our DCF set.
AZO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 19.85% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Autozone Inc? See CRWS, HD, NATH, RL, and PENN.
The ratings on the P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. The ratings on the IO classes were affirmed based on the credit quality of the referenced classes.
Technavio has been monitoring the automotive aftermarket e-retailing market and it is poised to grow by $41.86 billion during 2020-2024, progressing at a CAGR of over 19% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200602005819/en/ Technavio has announced its latest market research report titled Global Automotive Aftermarket E-retailing Market 2020-2024 (Graphic: Business Wire) Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Please Request Latest Free Sample Report on COVID-19 Impact ...
Introduction In part 1 found here, Why Record Corporate Debt Might Not Be So Bad: 8 Debt-Laden Blue Chips - Part 1 of this two-part series, I pointed out that low interest rates have been a strong motivating factor for publicly traded companies to utilize debt over equity to finance...
People who hate the rioting, from Black Lives Matter activists to National Review to the president, all expressed a desire to see Floyd get justice before the riots. And burning the AutoZone has no notable relationship to expediting the arrest of Floyd’s killer.