AZONEUTRAL

AZO FCF Yield Analysis

3.7%

Higher than 38% of Consumer Cyclical sector peers

Updated 410h ago·SEC filings & market data

Key Takeaway

AutoZone's FCF Yield of 3.7% means that for every $100 you invest in the stock, the company generates about $3.70 in free cash flow (the cash left after expenses and investments) each year.

Sector Performance

38th percentile

AZO

3.7%

Sector Median

5.5%

Sector Avg

-1.2%

Prior Period

3.5%(Jun 2026)

↑ Improving

📊

Deep Analysis

AutoZone's FCF Yield of 3.7% means that for every $100 you invest in the stock, the company generates about $3.70 in free cash flow (the cash left after expenses and investments) each year.

Among Consumer Cyclical peers, this yield sits below the sector median of 5.5%, placing AutoZone in the 43rd percentile. Over the last eight quarters, the trend has been increasing, with the latest quarterly change rising by +5.7% (year-over-year change is not available). While the current yield level is below average, the upward trend suggests improving cash generation relative to share price, which can reduce risk if it continues. However, the yield remains modest and below the sector midpoint, so the opportunity is limited compared to higher-yielding peers. This metric supports the overall NEUTRAL verdict: the improvement is a positive sign, but the below-median level does not provide a strong enough case for a bullish or bearish stance.

Frequently Asked Questions

What does the FCF Yield tell investors about AZO?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does AZO's FCF Yield compare to its sector?

AZO's FCF Yield of 3.7% compares to a Consumer Cyclical sector median of 5.5%, placing it in the 38th percentile.

Who are AZO's closest peers by FCF Yield?

The closest Consumer Cyclical peers by FCF Yield include: AMCR (5.5%), ABNB (5.6%), DKNG (5.1%), BALL (4.8%), BBY (7.0%).

📚

Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.