AutoZone, Inc. AZO

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
75/100
Strong

About AutoZone, Inc.

AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company offers a product line for cars, sport utility vehicles, vans, and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also provides A/C compressors, batteries and accessories, bearings, belts … Full AZO analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 52.6% (top 18%) and operating margin at 19.1% (top 4%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.92), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.12), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
90

Where AZO ranks in Specialty Retail

AutoZone, Inc. ranks #4 of 52 scored companies in Specialty Retail by moat score — the top 8%. The widest moat in the group is Winmark Corporation (WINA) at 83/100.

Moat scores for companies ranked near AZO in Specialty Retail
# Company Moat score Rating
1 Winmark Corporation WINA 83/100 Strong
2 Williams-Sonoma, Inc. WSM 82/100 Strong
3 Build-A-Bear Workshop, Inc. BBW 76/100 Strong
4 AutoZone, Inc. AZO 75/100 Strong
5 Tractor Supply Company TSCO 75/100 Moderate
6 Five Below, Inc. FIVE 74/100 Moderate
7 Ulta Beauty, Inc. ULTA 74/100 Moderate
8 O'Reilly Automotive, Inc. ORLY 73/100 Moderate
9 Sally Beauty Holdings, Inc. (Na SBH 71/100 Moderate

See every General Corporate company ranked by moat score →

How AZO scores on the Corporate Default defenses

Pricing Power

Score 90 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 71 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 92 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 70 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 46 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 81 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AZO's moat

What is AutoZone, Inc.'s moat score?

AutoZone, Inc. (AZO) scores 75 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #4 of 52 scored companies in Specialty Retail, the top 8%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 51 companies in Specialty Retail. Its strongest defense is Customer Stickiness (92/100) and its weakest is Resilience (46/100).

How does AutoZone, Inc. compare with other Specialty Retail companies?

AutoZone, Inc. ranks #4 of 52 scored companies in Specialty Retail by moat score. The widest moat in Specialty Retail is Winmark Corporation (WINA) at 83/100. The companies ranked closest are Build-A-Bear Workshop, Inc. (BBW) at 76 just above it and Tractor Supply Company (TSCO) at 75 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 51 companies in Specialty Retail. The defenses are then weighted to produce the overall score out of 100.

Why is AutoZone, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for AutoZone, Inc.?

The Corporate Default template measures 6 defenses, and AZO scores: Pricing Power (90), Cost Advantage (71), Customer Stickiness (92), Capital Efficiency (70), Resilience (46), Scale & Market Position (81). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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