AZONEUTRAL

AZO Gross Margin Analysis

52.2%

Higher than 74% of Consumer Cyclical sector peers

Updated 963h ago·SEC filings & market data

Key Takeaway

Gross margin, the share of revenue left after paying direct product costs, sits at 52.2%.

Sector Performance

74th percentile

AZO

52.2%

Sector Median

34.2%

Sector Avg

26.4%

Prior Period

52.5%(Apr 2026)

→ Stable

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Deep Analysis

Gross margin, the share of revenue left after paying direct product costs, sits at 52.2%.

That is well above the Consumer Cyclical sector median of 34.2%, placing AutoZone in the 74th percentile among its peers. No year-over-year or quarter-over-quarter change is available, and the only historical value reported is the current 52.2%, so the trend direction cannot be determined from the provided data. The high current level relative to the sector implies a possible cost advantage or pricing power, but without a trend, there is no evidence of improving or deteriorating performance. This combination points to a stable competitive position rather than a catalyst for near-term re-rating. The metric supports the neutral overall verdict, as the strong level is offset by the absence of movement to justify a bullish or bearish stance.

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 34.2%, placing it in the 74th percentile.

Who are AZO's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), AEO (33.9%), URBN (36.6%), GME (40.7%), RH (41.4%).

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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.