AZONEUTRAL

AZO Gross Margin Analysis

52.2%

Higher than 76% of Consumer Cyclical sector peers

Updated 612h ago·SEC filings & market data

Key Takeaway

AutoZone’s gross margin of 52.2% means that out of every dollar of revenue, the company keeps roughly 52 cents after paying for the direct costs of the products it sells.

Sector Performance

76th percentile

AZO

52.2%

Sector Median

36.6%

Sector Avg

30.0%

Prior Period

52.5%(Apr 2026)

→ Stable

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Deep Analysis

AutoZone’s gross margin of 52.2% means that out of every dollar of revenue, the company keeps roughly 52 cents after paying for the direct costs of the products it sells.

This figure sits well above the sector median of 36.5%, placing AutoZone in the 77th percentile among its Consumer Cyclical peers. The year-over-year change and quarter-over-quarter change are both listed as N/A, and the trend over the last eight quarters is also unavailable, meaning no directional movement can be assessed from the data provided. A high gross margin relative to peers suggests the company has strong pricing power or cost advantages, but the absence of any trend information makes it impossible to determine whether this advantage is improving, eroding, or stable. That lack of trend data introduces uncertainty, as a sustained high margin could support profitability while any hidden decline would be a risk. This metric alone does not contradict the overall NEUTRAL verdict, because a strong level supports the stock’s fundamentals, but the missing trend data prevents a more bullish or bearish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about AZO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AZO's Gross Margin compare to its sector?

AZO's Gross Margin of 52.2% compares to a Consumer Cyclical sector median of 36.6%, placing it in the 76th percentile.

Who are AZO's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: RH (41.4%), DKNG (42.3%), CZR (50.3%), COLM (50.7%), AMZN (51.8%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.