Stock Analysis on Net

AutoZone Inc. (NYSE:AZO)

This company has been moved to the archive! The financial data has not been updated since December 18, 2023.

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

AutoZone Inc., FCFF calculation

US$ in thousands

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12 months ended: Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020 Aug 31, 2019 Aug 25, 2018
Net income 2,528,426 2,429,604 2,170,314 1,732,972 1,617,221 1,337,536
Net noncash charges 618,221 724,705 442,221 504,108 449,629 584,719
Changes in operating assets and liabilities (205,859) 56,826 906,008 483,028 61,663 158,037
Net cash provided by operating activities 2,940,788 3,211,135 3,518,543 2,720,108 2,128,513 2,080,292
Interest paid, net of interest cost capitalized, net of tax1 208,171 140,885 148,291 126,578 121,470 118,219
Capitalized interest, net of tax2 1,353 944 1,240 913 1,165 1,085
Capital expenditures (796,657) (672,391) (621,767) (457,736) (496,050) (521,788)
Leased assets obtained in exchange for new finance lease liabilities (58,316) (100,711) (112,095) (115,867) (147,699) (98,782)
Free cash flow to the firm (FCFF) 2,295,339 2,579,862 2,934,212 2,273,995 1,607,399 1,579,026

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the AutoZone Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. AutoZone Inc. FCFF decreased from 2021 to 2022 and from 2022 to 2023.

Interest Paid, Net of Tax

AutoZone Inc., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
12 months ended: Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020 Aug 31, 2019 Aug 25, 2018
Effective Income Tax Rate (EITR)
EITR1 20.20% 21.10% 21.10% 21.80% 20.80% 27.90%
Interest Paid, Net of Tax
Interest paid, net of interest cost capitalized, before tax 260,866 178,561 187,948 161,864 153,371 163,965
Less: Interest paid, net of interest cost capitalized, tax2 52,695 37,676 39,657 35,286 31,901 45,746
Interest paid, net of interest cost capitalized, net of tax 208,171 140,885 148,291 126,578 121,470 118,219
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax 1,695 1,197 1,572 1,167 1,471 1,505
Less: Capitalized interest, tax3 342 253 332 254 306 420
Capitalized interest, net of tax 1,353 944 1,240 913 1,165 1,085

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

1 See details »

2 2023 Calculation
Interest paid, net of interest cost capitalized, tax = Interest paid, net of interest cost capitalized × EITR
= 260,866 × 20.20% = 52,695

3 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 1,695 × 20.20% = 342


Enterprise Value to FCFF Ratio, Current

AutoZone Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 54,277,015
Free cash flow to the firm (FCFF) 2,295,339
Valuation Ratio
EV/FCFF 23.65
Benchmarks
EV/FCFF, Competitors1
Amazon.com Inc. 56.07
Home Depot Inc. 22.48
Lowe’s Cos. Inc. 25.13
TJX Cos. Inc. 29.04
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 47.55
EV/FCFF, Industry
Consumer Discretionary 38.95

Based on: 10-K (reporting date: 2023-08-26).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

AutoZone Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020 Aug 31, 2019 Aug 25, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 50,372,161 51,816,412 42,513,078 30,608,029 32,538,131 23,495,797
Free cash flow to the firm (FCFF)2 2,295,339 2,579,862 2,934,212 2,273,995 1,607,399 1,579,026
Valuation Ratio
EV/FCFF3 21.95 20.08 14.49 13.46 20.24 14.88
Benchmarks
EV/FCFF, Competitors4
Amazon.com Inc. 45.92 78.83 74.39
Home Depot Inc. 27.17 25.12 20.22 19.11 21.30
Lowe’s Cos. Inc. 19.56 19.56 14.88 20.95 18.88
TJX Cos. Inc. 31.93 33.03 18.30 19.08 21.16
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 38.32 111.04 130.00 51.35 42.44
EV/FCFF, Industry
Consumer Discretionary 32.71 50.20 59.78 45.72 30.57

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 50,372,161 ÷ 2,295,339 = 21.95

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. AutoZone Inc. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.