- Price
- $2815.30 → $2872.16(+2.0%)
- Discount
- 23.9% → 22.4%(−1.5 pts)
- Thesis
- AutoZone buys back about 8% of its shares every year. This shrinking share count is the main reasondrives most of its profit-per-share has grown for yearsgrowth. The companymarket doubts how long this pace can continue. AutoZone borrows money to fund part of thisthe buyback. The market may be underestimating how long this buyback pace can continueNet debt already sits above its own target range. IfFor the discount to close, store sales must keep growing and debt stays stable. Cash flow must also catch up to the buyback pace, so debt does not keep rising against earnings. The board added $1.5 billion to the buyback can continueauthorization 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 profit per share keeps compoundingexpanding margins, a good sign for the buyback. ThisThe 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 close. If debt keeps rising faster than cash flow, AutoZone may need to slow the buyback, and the discount could persist.
- Recent events
- 2026-09-22: AutoZone is due to report its next results (reported Q4 FY2026)fiscal 2026 results on this date: net sales of $6.6 billion, up 5.6%, and diluted EPS of $56.05, above the $54.08 analysts expected.
2026-06-16: AutoZone's board approved an additional $1.5 billion for share repurchases, bringing total authorized buybacks since 1998 to $42.2 billion.
2026-06-01: 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.