Stock fact sheet · data as of
AutoZone, Inc. (AZO): fair value, margin of safety and Wheel Score
Consumer Cyclical · Specialty Retail · United States · Blend
Is AZO undervalued?
AutoZone, Inc. (AZO) closed at 3,059.62 on 16 Oct 2026, close to the GLS average fair value of 2,988.47 (2.4% above fair value). 2 of the 7 models that produced a number sit above the price, 5 below - the market and our models roughly agree. With little margin of safety either way, the case for or against the stock rests on the quality numbers and the option premium rather than on price.
The 7 models disagree widely: Payback Time gives 1,696.12 while Graham Growth gives 5,747.68. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files AZO under Blend.
Nine valuation models for AZO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 4,997.89 | +63% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 5,747.68 | +88% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2,275.70 | -26% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,919.88 | -37% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 2,547.50 | -17% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1,696.12 | -45% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 1,734.51 | -43% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -920.46 | -130% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 3,600.25 | +18% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - AZO passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 25.9%, ROE -102.8%, ROA 11.9% - with debt at -4.97 times equity and a free-cash-flow yield of 2.2%.
AutoZone, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Auto Parts Locations 100% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 9/10 on the GLS smart-money scales; the last recorded insider buy was on 9 Oct 2026; the last recorded Congressional buy was on 25 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | 25.9% |
|---|---|---|---|
| GLS Moat | 5.3 / 10 | ROE | -102.8% |
| Debt / equity | -4.97 | ROA | 11.9% |
| Free-cash-flow yield | 2.2% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 9 / 10 |
Wheel Score 67: Good
AZO scores 67 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 12/25), Piotroski health (13/20), the GLS moat (8/15), the option premium on offer (20/20) and how easily the stock trades (14/20). Value (12/25) is the part holding the score back.
Implied volatility is 35% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (20 of 20 points). Chain open interest is 15,863 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 223k shares a day on a market cap of $49.9B, with a beta of 0.34 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 12 / 25 | -2% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.3/10 | |
| Premium | 20 / 20 | implied volatility 35% | |
| Stability | 14 / 20 | 223k shares/day, $49.9B cap, beta 0.34 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 8 Dec 2026, 53 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Retail
The 12 companies below are the closest to AutoZone, Inc. by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| EBAY eBay Inc. | 122.91 | 108.54 | -13% | 71Good | $54.7B |
| SE Sea Limited | 95.31 | 113.41 | +16% | 77Good | $58.3B |
| JD JD.com, Inc. | 27.39 | 114.53 | +76% | 88Prime | $37.0B |
| ORLY O'Reilly Automotive, Inc. | 88.50 | 54.54 | -62% | 62Fair | $71.6B |
| WSM Williams-Sonoma, Inc. | 242.48 | 148.10 | -64% | 63Fair | $28.6B |
| CPNG Coupang, Inc. | 14.79 | 9.90 | -49% | 45Weak | $26.6B |
| MELI MercadoLibre, Inc. | 1,856.98 | 1,877.00 | +1% | 72Good | $94.1B |
| ULTA Ulta Beauty, Inc. | 592.42 | 476.96 | -24% | 61Fair | $25.5B |
| CASY Casey's General Stores, Inc. | 673.63 | 330.95 | -104% | 64Fair | $24.9B |
| PDD PDD Holdings Inc. | 81.45 | 507.91 | +84% | 87Prime | $115.9B |
| BBY Best Buy Co., Inc. | 94.17 | 93.88 | -0% | 78Good | $19.8B |
| TSCO Tractor Supply Company | 32.74 | 21.97 | -49% | 67Good | $17.1B |
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Start free See the Sunday ScanQuestions about AZO
Is AZO undervalued right now?
Not meaningfully: at 3,059.62 the stock trades within a few percent of the GLS average fair value of 2,988.47 (2.4% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of AZO and what does it mean?
AZO scores 67 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AZO?
2,988.47 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does AutoZone, Inc. report earnings next?
The next earnings report is due on 8 Dec 2026 (before the open), 53 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AZO have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 15,863 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.