AutoZone Story

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AZO -- USA Stock  

USD 1,183  7.61  0.65%

It seems AutoZone may not recover as fast as we have hopped for as its price went down 1.54% today. The company's current daily volatility is 1.11 percent, with a beta of -0.04 and an alpha of 0.07 over DOW. As many millenniums are excited about the latest volatility, it is fair to outline AutoZone based on its historical price patterns. I will address the reasons why this entity does not get much respect from institutional investors under the current market uncertainty.
Published over a month ago
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Is AutoZone (NYSE:AZO) a new disruptor?
AutoZone has roughly 543.5 M in cash with 2.14 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 23.27. AutoZone has performance score of 6 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.0368, which signifies not very significant fluctuations relative to the market. Let's try to break down what AutoZone's beta means in this case. As returns on the market increase, returns on owning AutoZone are expected to decrease at a much lower rate. During the bear market, AutoZone is likely to outperform the market. Although it is extremely important to respect AutoZone historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing AutoZone technical indicators, you can presently evaluate if the expected return of 0.1% will be sustainable into the future. AutoZone right now shows a risk of 1.11%. Please confirm AutoZone variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if AutoZone will be following its price patterns.
Investing in AutoZone, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding AutoZone along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is AutoZone's Liquidity

AutoZone financial leverage refers to using borrowed capital as a funding source to finance AutoZone ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AutoZone financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between AutoZone's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for AutoZone, but it might be worth checking our own buy vs. sell analysis

AutoZone Correlation with Peers

Investors in AutoZone can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AutoZone. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AutoZone and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AutoZone is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of AutoZone for more details

AutoZone exotic insider transaction detected

Legal trades by AutoZone insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AutoZone insider trading alert for general transaction of common stock by William Rhodes, Chairman President & CEO, on 21st of October 2020. This event was filed by Autozone Inc with SEC on 2020-10-21. Annual statement of changes in beneficial ownership - SEC Form 5. William Rhodes currently serves as chairman of the board, president, chief executive officer of AutoZone [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down AutoZone Indicators

We consider AutoZone very steady. AutoZone secures Sharpe Ratio (or Efficiency) of 0.0911, which signifies that the company had 0.0911% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for AutoZone, which you can use to evaluate future volatility of the firm. Please confirm AutoZone Mean Deviation of 0.821, downside deviation of 1.02, and Risk Adjusted Performance of 0.0804 to double-check if the risk estimate we provide is consistent with the expected return of 0.1%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will AutoZone institutional investors exit after the slide?

Latest Sortino Ratio is up to -0.02. Price may slide again. AutoZone has relatively low volatility with skewness of -0.01 and kurtosis of 0.73. However, we advise all investors to independently investigate AutoZone to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on AutoZone

Whereas many of the other players under the specialty retail industry are still a bit expensive, AutoZone may offer a potential longer-term growth to institutional investors. In closing, as of the 21st of September 2020, our analysis shows that AutoZone moves indifferently to market moves. The company is fairly valued and projects below average chance of bankruptcy for the next 2 years. Our actual 30 days Buy-Hold-Sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of AutoZone. Please refer to our Terms of Use for any information regarding our disclosure principles.

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