AutoZone Inc. (NYSE:AZO)

Price to Earnings (P/E) Ratio

The Price to Earnings (P/E) ratio data starts from the quarter ending November 17, 2018. From this point, there is a general upward trend observed through early 2019, increasing from 13.92 to 18.56 by August 25, 2018. This suggests growing investor confidence or expectations of higher earnings. Following this peak, the ratio experiences some volatility, with values fluctuating between roughly 13.17 and 18.81 over the subsequent quarters. Notably, the P/E ratio dips to its lowest recorded point at 13.17 in May 2020, which could reflect a market reaction to external factors impacting earnings or investor sentiment. After that, the ratio again rises and maintains a range mostly above 15, peaking close to 18.81 in August 2022, before slightly decreasing towards the end of the dataset in November 2023.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a pattern similar to the P/E ratio, starting at 10.28 in November 2018 and increasing to a high of 13.3 by August 25, 2018. This progression suggests improving valuation relative to operating profit in that timeframe. Subsequently, the ratio demonstrates fluctuations, with a notable decline to 9.54 around May 2020, aligning temporally with the P/E low, indicating perhaps a general market-wide reassessment or company-specific issues affecting operating profit valuation. Post this dip, the ratio steadily recovers and oscillates between approximately 10.3 and 13.97, maintaining an overall elevated valuation relative to operating profits by late 2023.

Price to Sales (P/S) Ratio

The P/S ratio data, starting from November 17, 2018, indicates a consistent upward movement from 1.66 to approximately 2.36 by August 2018. This trend reflects increased market valuation per unit of sales over this period. Although the ratio experiences minor downward corrections, it generally remains above 2.0 subsequently, illustrating sustained investor willingness to pay higher prices for each sales dollar. The highest observed value is 2.81 in November 2022, after which there is a gradual decline towards 2.45 by November 2023. The sustained P/S ratio above 2.0 suggests continued positive sales performance or strong sales expectations by the market.

Price to Book Value (P/BV) Ratio

No data is available for the Price to Book Value (P/BV) ratio throughout the periods examined.

Share Price

The share price demonstrates an overall upward trend from November 2017 through November 2023. Starting at $701.01 in late 2017, it rises significantly over the period, reaching $2637.36 by November 2023. Notable growth phases include substantial increases between late 2017 and late 2019, as well as from early 2021 to late 2023. There are occasional fluctuations, for instance in early 2020 where the price dipped to $913.92, likely reflecting market volatility. However, the share price recovers consistently afterwards, indicating resilience and positive investor sentiment.

Earnings Per Share (EPS)

The EPS data, available from May 2018 onward, shows a consistent increase across all reported periods. Starting at 52.33 US dollars, it grows steadily to reach 149.35 US dollars by November 2023. This pattern suggests improving profitability and effective earnings growth over time. The steady rise in EPS reflects the company’s capacity to enhance shareholder value through increasing net income on a per-share basis.

Price-to-Earnings Ratio (P/E)

The P/E ratio fluctuates moderately throughout the observed periods, ranging between approximately 13 and 19. It does not follow a clear upward or downward trend but oscillates around an average value close to 16-17. This relative stability in P/E indicates that the market valuation relative to earnings has been fairly consistent, even as both earnings and share price have increased substantially. Occasional peaks, such as around early 2022 at approximately 18.81, may indicate moments of higher market optimism or expectation of future growth.

Overall Analysis

The financial data reveals a company with steadily improving financial performance, as evidenced by rising EPS. The share price growth largely corresponds with this earnings increase, reflecting market confidence. The stable P/E ratio suggests that investor valuation relative to earnings has remained consistent, which can imply that the share price growth is primarily driven by actual earnings growth rather than overheated market sentiment. Temporary share price dips, such as early 2020, likely reflect external market disruptions rather than fundamental weaknesses. The data collectively indicates strong operational performance and positive market evaluation over the examined timeframe.

The data reveals notable trends in the share price, operating profit per share, and corresponding price-to-operating profit (P/OP) ratio for the analyzed periods.

Share Price Trends

The share price demonstrates an overall upward trajectory from the initial period until the end of the timeline. After fluctuating around the 700 US$ mark in late 2017, the price increased steadily, peaking above 2400 US$ in late 2022 and 2023. Notable volatility is observed around early 2020 where a decrease from approximately 1200 US$ to below 1000 US$ occurs, possibly reflecting market disruptions, before subsequent recovery and strong growth through 2021 to 2023.

Operating Profit Per Share

Operating profit per share shows a consistent and marked increase starting from the earliest reported figure of approximately 70.85 US$ in mid-2018. Across the subsequent quarters, the figure rises steadily, reaching over 200 US$ by the final periods. This suggests continual growth in profitability on a per-share basis, underpinning the firm's operational performance improvements over time.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio exhibits variability but stays largely within the 9 to 14 range throughout the observed periods. Initially, the ratio increases slightly as operating profit grows but share prices fluctuate. The ratio dips toward early 2020, aligning with the share price drop. Subsequently, despite share price increases, the ratio remains relatively stable, indicating that market valuations are growing in harmony with the operating profit performance, reflecting a balanced investor confidence relative to profitability.

Overall, the analyzed metrics suggest a healthy financial trend characterized by rising profitability per share and a growing share price, while valuation multiples reflect a steady market appraisal of operating profit growth. The temporary share price decline and ratio adjustment around early 2020 may indicate external shocks, though recovery and growth thereafter demonstrate resilience and positive operational momentum.

The share price of the company has demonstrated a generally upward trend from November 2017 through November 2023. Initially, the price started at 701.01 US dollars and experienced growth with notable fluctuations. A peak occurred in November 2019 reaching 1,226.74 US dollars, followed by a decline early in 2020, likely coinciding with external market pressures, dropping to 913.92 US dollars in February 2020. Subsequent quarters showed recovery and continued growth, culminating in a significant increase in 2021, peaking at 1,996.37 US dollars in February 2022. After a slight dip in mid-2022, the share price rebounded and reached its highest value of 2,637.36 US dollars by November 2023, indicating substantial appreciation over the analyzed period.

Sales per share data, available from May 2018 onward, show a consistent positive trajectory. Starting at 439.02 US dollars, the sales per share progressively increased each quarter without notable regression, reaching 1,021.43 US dollars by November 2023. This steady rise illustrates growth in revenue generation relative to shares outstanding, suggesting improved operational performance or expansion.

The Price-to-Sales (P/S) ratio, reflecting market valuation relative to sales, exhibits some volatility. Initial values from May 2018 start at 1.66, climbing sharply to 2.36 in August 2018 and maintaining a range generally above 2.0 thereafter, with few dips such as 1.77 in May 2020. The ratio peaked around 2.81 in November 2022, indicating heightened market expectations or valuation premiums during this period. Towards the end of the timeline, the P/S ratio shows a moderate reduction to approximately 2.58, suggesting a stabilizing valuation relative to sales.

Share Price Trend

General increase over six years with significant growth phases and occasional corrections; highest value recorded in late 2023.

Sales per Share Growth

Consistent quarterly increase from 2018 through 2023, nearly doubling over the period, signaling strong revenue growth.

Price-to-Sales Ratio Behavior

Moderate volatility with an overall upward trend, peaking near the end of 2022, reflecting changing investor sentiment and valuation dynamics.

The share price of the company exhibits a general upward trend over the observed periods, starting at $701.01 in November 2017 and increasing to $2,637.36 by November 2023. Notable fluctuations include a dip around early 2020, coinciding with a share price near $913.92 in February 2020, followed by a recovery and steady growth. The most significant appreciation occurs from early 2021 onwards, with the share price nearly doubling from approximately $1,324.76 in February 2021 to $2,637.36 by November 2023.

Book value per share (BVPS) presents a markedly different pattern, characterized by consistently negative values throughout the entire period. Initially, BVPS was at -$55.76 in November 2017 and progressively declined, reaching -$301.51 by November 2023. This indicates a continuous erosion in the book value per share, suggesting expanding accumulated losses or other factors reducing shareholder equity on a per-share basis.

The combination of rising share prices and decreasing (negative) BVPS reflects a growing market valuation despite deteriorating book value metrics. This divergence could indicate that market participants are valuing aspects other than book equity, such as earnings potential, cash flows, or intangible assets not captured in the book value. The absence of data for the price-to-book value (P/BV) ratio limits the precise quantification of this relationship, but given the negative book value, the P/BV ratio would be either undefined or negative, which is atypical.

Overall, the financial data suggests that while the company's market capitalization and stock valuation have strengthened significantly, underlying accounting metrics related to net asset value per share have consistently declined, highlighting a potential risk or structural issue within the company's financial base that may warrant further analysis.