AZONEUTRAL

AZO Return on Equity (ROE) Analysis

-73.2%

Higher than 16% of Consumer Cyclical sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

Sector Performance

16th percentile

AZO

-73.2%

Sector Median

6.4%

Sector Avg

-38.1%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

A negative ROE of -73.2% means AutoZone lost money relative to its equity base, which is a warning sign for profitability. This result is far below the Consumer Cyclical sector median of 8.7%, placing the company in the 15th percentile among peers — a weak showing. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all listed as N/A, so no directional data is available. The combination of a deeply negative ROE and the absence of historical trend implies high investment risk, as the company struggles to generate returns and no trajectory can be assessed. This metric contradicts the overall NEUTRAL verdict by highlighting fundamental weakness, but the neutral rating likely reflects offsetting factors such as cash flow or valuation that are not captured by ROE alone.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AZO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AZO's Return on Equity (ROE) compare to its sector?

AZO's Return on Equity (ROE) of -73.2% compares to a Consumer Cyclical sector median of 6.4%, placing it in the 16th percentile.

Who are AZO's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: BWA (8.1%), TSLA (4.7%), AMCR (4.4%), JACK (8.6%), KMX (3.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.