$AZO (-1,7 %)

Core data - Q2 FY2025 (end of February 15, 2025)

• Net sales: ≈ USD 4.0 billion, an increase of approx. 2.4% compared to Q2 2024
• Gross profit margin: 53,9 %, almost unchanged compared to the previous year
• Operating result (EBIT): ≈ USD 706.8 million, decrease of around 4.9% compared to the previous year
• Net result / net profit: ≈ USD 487.9 million, decrease of around 5.3 % compared to previous year
• Earnings per share (EPS): USD 28.29, minus approx. 2.1 % yoy

Further highlights & developments

• Store expansion: A total of 45 new stores opened-28 in the USA, 13 in Mexico, 4 in Brazil-Total portfolio: 7,432 stores
• 
  Share buybacks: 100,000 shares with a value of ≈ USD 329.4 million repurchased. Remaining volume in the buyback program: ≈ USD 1.3 billion
• Inventory developmentInventory increased by 10.4 % across all operations. Net inventory (after liabilities) per store improved slightly: USD -161 thousand (previous year: USD -164 thousand)

Strategic aspects & influencing factors

• Exchange rate challenges: Exchange rates had a negative impact on sales and profit
• Outlook and investments: Focus on expansion of the mega hubsimproved warehouse availability and infrastructure to strengthen the business in the long term
• SG&A costs: Increase in selling, general and administrative expenses impacted EBIT and EPS

Market reaction & analyst rating

• Share reactionDespite the EPS miss, the share price rose slightly (e.g. +0.19% in the pre-market) due to strong sales figures. Other reports showed slight losses (~1.1%) immediately after publication.
• Analyst opinionThe quarterly report was described as "mixed" - sales above expectations, profit below.

Conclusion at a glance

AutoZone $AZO (-1,7 %) presented solid sales growth in Q2 FY2025 and accelerated store expansion, while earnings growth was impacted by exchange rates and higher costs. Management is focusing on expansion and infrastructure in order to achieve sustainable growth in the long term, even if margin pressure remains noticeable in the short term.

Earnings next week 🗓️

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Share analysis/share presentation ⬇️

Today we are talking about the company AutoZone: $AZO (-1,7 %)

What is AutoZone and what does it do?

AutoZone is a company that sells car parts and accessories. They offer a variety of products for cars, such as oils, filters, batteries and more. AutoZone is a kind of one-stop store for car parts, where car owners can find everything they need to maintain and repair their vehicle. The company is known for its wide range of products, expertise and customer service.

Market capitalization:

AutoZone currently has a market capitalization of around 545.5 billion euros.

Strengths of the share:

Some of AutoZone's strengths:

- Wide range of car parts and accessories

- Knowledge and expertise in the field of car parts

- Good customer service and advice

- Locations in many cities for convenient access

- Online ordering options for easy shopping

- Regular offers and discounts for customers

- Fast delivery and pick-up options for urgent needs

- Return options for unwanted or incorrectly ordered items

- Warranty on many products for added peace of mind

- Eco-friendly initiatives and recycling programs

Weaknesses of the share:

Here are some of AutoZone's weaknesses:

- Limited availability of some specialty auto parts

- Potentially higher prices compared to online competitors

- Service quality can vary by location

- Long wait times at some locations during peak hours

- Return process can sometimes be cumbersome

- Limited selection of accessories compared to specialized stores

- Online orders could have delivery delays

- Possibly limited warranty coverage on certain products

- Less personalization compared to smaller auto parts stores

- Environmental impact from packaging and shipping processes

A little more about the business model:

AutoZone is a company that specializes in the sale of car parts and accessories. Their business model is based on providing a wide range of auto parts for different vehicle types and models. Through their numerous locations and online platform, they offer customers convenient access to high-quality products for vehicle maintenance and repair.

A key aspect of their business model is the expertise and customer service they provide. AutoZone employees are usually well trained and can assist customers in selecting the right parts and accessories. This contributes to customer satisfaction and loyalty.

Another important point is competitiveness in terms of prices and offers. AutoZone strives to offer competitive prices and provide regular discounts and special offers for customers. This helps to attract and retain customers.

AutoZone's business model also includes aspects such as logistics and inventory management. They need to ensure that they have a sufficient amount of different car parts in stock to meet customer demand. This requires efficient warehousing systems and supply chain processes.

Additionally, AutoZone invests in marketing and advertising to strengthen their brand and attract new customers. They use various channels to promote their products and raise awareness of their services.

Overall, AutoZone's business model is based on providing high-quality auto parts, good customer service, competitiveness in prices and offers, and efficient logistics and marketing strategies to meet customers' needs and grow their business.

A little more about the industry:

AutoZone belongs to the automotive accessories industry which specializes in the sale of auto parts and accessories. This industry is closely linked to the automotive industry and offers products for the maintenance, repair and customization of vehicles. AutoZone competes with other retailers and online platforms that offer similar products. The industry is dependent on the demand for vehicles and their age, as older vehicles tend to require more spare parts. Innovations in automotive technology and consumer trends also influence the development of this industry.

When and where was AutoZone founded?

AutoZone was founded in 1979 by Pitt Hyde in the USA. The company began as a small auto parts store and then expanded into a nationwide chain of retail stores offering auto parts and accessories. Over the years, AutoZone has become a leader in the automotive aftermarket industry and is known for its wide range of products and focus on customer service.

AutoZone's goal:

AutoZone aims to provide its customers with quality auto parts and accessory products to fulfill their vehicle maintenance and repair needs. The company strives to offer a wide range of products to meet the needs of different vehicle types and models. AutoZone emphasizes excellent customer service and strives to provide a comprehensive shopping experience that caters to customers' individual needs. Through innovation and industry leadership, AutoZone continually strives to increase customer satisfaction and serve as a trusted source for auto parts and accessories.

Your opinion:

Now I would like to hear your opinion on this stock in the comments.

I personally find the company very interesting and will continue to monitor it. It was an unknown company to me until recently, but that's exactly why I wanted to introduce the share to you.

What do you think of AutoZone and were you already familiar with this company?

Do you already have the share in your portfolio?

Please let me know in the comments.

This is of course not investment advice but just my own opinion that I would like to share with you.

ULTA Beauty.
$ULTA (-0,09 %)

Currently, apparently, as cheap to get as the last time in fall 23, in the Corona Crash and sometime in 2018 (yet rare and short-lived).

The company is debt-free (bank debt) and operates over 1300 beauty stores, some of them directly in Target $TGT (+0,5 %) stores.

Currently the outlook looks uncertain, is growth leveling off?

Will the competition (mainly Sephora, owned by LVMH $MC (-0,53 %) ) snatch further market share in the higher-priced segment?

These are questions I've been asking myself for a few days and haven't found an answer to yet, so let's discuss them as a community in the comments.

I like the company policy, you have an experienced CEO who has been with the company for about 10 years and has grown up. ULTA has bought back an average of 2% of shares per year over the last 10 years and has been able to increase both the operating margin and same store sales substantially, both of which are above the average of normal retailers.

Retailers, a good point.

Retailers, as I have learned, you want to buy as cheaply as possible due to price pressure & competition, so if I apply a 10 P/E ratio to ULTA, for example, the company would still have around $4-4.5 billion in value downside or -25-30% in value loss per share. At the moment we are hovering between 15 & 16, historically 20 was a good median for this company.

According to the stock finder, the company is also cheaply valued, with a price/cash flow ratio of around 13 and an average of 17.94 over the last 10 years.

According to the fair value cash flow, we currently have almost a 20% undervaluation for ULTA Beauty, just like in October 2023.

The question is whether the growth will level off significantly and lead to a revaluation or whether Ulta might even manage to create ~300 new stores in the next 10 years (Canada/Mexico) which would continue to be a driving factor.

In the course of my research, I made comparisons with AutoZone $AZO (-1,7 %) to see how a company with small sales growth and saturated locations can continue to grow strongly. Here, however, I came to the realization that the economic factor may have played a decisive role.

Phew, so actually I just wanted to ask "what do you think of Ulta Beauty?" 😂

GERIT 🐅

©️ Picture is mine.

A summary of the coming week:

Monday:

• New Home Sales (January)
• Quarterly Reports from Workday ($WDAY (-2,51 %) ), Zoom Video Communications ($ZM (+2,9 %) ), Domino’s Pizza ($DPZ (-0,17 %) ) and Unity Software ($U (+8,84 %) )

Tuesday:

• Orders for durable goods (January)
• S&P Case-Shiller Home Price Index
• Consumer Confidence (February)
• Quarterly Reports from Lowe’s ($LOW (-1,26 %) ), ONEOK ($OKE (-0,39 %) ), Bank of Montreal ($BMO (-0,4 %) ), American Tower ($AMT (-2 %) ) and AutoZone ($AZO (-1,7 %) )

Wednesday:

• Gross Domestic Product of the U.S. (first revision of the fourth quarter)
• U.S. Trade Balance (January)
• Retail Inventories (January)
• Wholesale inventories (January)
• Salesforce Quarterly Reports ($CRM (-1,36 %) ), Snowflake ($SNOW (+2,9 %) ), Royal Bank of Canada ($RY (-0,9 %) ), HP ($HPQ (-2,03 %) ), TJX ($TJX (-1,62 %) ), Paramount Global ($PARA (-0,14 %) ) and Monster Beverage Corp. ($MNST (-2,91 %) )

Thursday:

• Personal Personal (PCE)
• Initial claims for unemployment benefits
• Pending Pending Home Sales (January)
• Remarks by Atlanta Fed President
  Raphael Bostic, Chicago Fed President Austan Goolsbee and Cleveland Fed President Loretta Mester
• Quarterly Reports from Anheuser-Busch InBev ($BUD (-0,33 %) ), Dell Technologies ($DELL (+4,22 %) ), Toronto-Dominion Bank ($TD.PR.P ), Hewlett Packard Enterprise ($HPE (+2,1 %) ) and Best Buy ($BBY (+1 %) )

Friday:

• Remarks by Dallas Fed President Lorie Logan, Federal Reserve Board Governor Christopher Waller, and Atlanta Fed President Bostic and San Francisco Fed President Mary C. Daly
• Quarterly Reports from RadNet ($RDNT (-1,97 %) ), Plug
  Power ($PLUG (+9,17 %) ) and FuboTV ($FUBO )

Good day,

I am 25 years old, a self-employed electrical engineer and have been dealing with shares for about 2 years. I know in this area average well, am absolutely no professional.

My goal is to build up a good long-term portfolio with individual shares.

I have 3 funds with my bank, which I can not mention here.

In an ETF I can not pay in the house bank monthly, therefore the funds. (Would have of course rather e.g. a Msci World or....)

And pay into an online broker I do not know, call me old-fashioned but that is too uncertain for me, I do not know much about it and am afraid that there is the online broker suddenly no longer and everything is gone.

My shares I bought earlier was mostly a mistake have bought too quickly or erwas read and that sounded so good have bought in greed. This should not continue now.

Well now to my shares, strategy I follow actually no right, have also too little time me daily several hours to read through. Often I look what do people buy, what do they use every day, from which brand is the....usw. In this respect, I read magazines or online and if I like a share, it first comes to the watch list, there it is not bought for 1-3 months because I do not want to be blinded. Each magazine, online article or video writes a company so special and future-proof that it affects my opinion, and therefore I wait a certain time until I deal with the companies.

In this respect I use most tradingview, aktienfinder pro and finanzen,net and a few others but not so often.

With the shares I have looked at the annual return of the past years, on the fair value, profit flow, profit of the next years and on other figures where I know less well. (This is just my opinion, I am absolutely not a professional, please correct me if I am wrong)

The shares are all long-term investments and I plan to hold them for several years,

$RACE (-0,8 %) is an Italian company and therefore I would pay less tax on the sale at some point as an Italian citizen, but that should not be a reason, the last few years have gone very well and I also believe the luxury companies in this period can pass on the price increase well to their customers (SIMILAR TO $LVMH)

Unfortunately, I do not know how it looks with the E-cars if in the distant future only such are sold. How hard Ferrari is doing.

$MDLZ (+0,75 %) I have looked at the 10 largest food companies and for me mdlz is the share that has the most potential to the upside, whether it is fair value or profit flow is still a lot up in it

$MCD (+1,08 %) a rather low-risk company, I believe that mc donalds will still exist in 20 years, and when I look at the competition I see mcd far in front

$LIN I think is also a low risk company and with their business model I see in the next few years certainly a higher price

$NOVO B A pharmaceutical company never hurts. With a profit of 32% over sales and the latest drug that makes you slim you are way ahead of the competition. They are slightly overbought, but they always feel that way.

$LNG (+0,16 %) and $EQNR (-0,65 %) is rather risky, here I am talking about the LNG that will go to Europe in the future and the two companies are already working profitably, if you assume the next few years that they will go a lot to Europe then I think the company will rise.

$AZO (-1,7 %) have dealt rather less with it, are a US Autoreperatur company with service and sales.

I do not know why but the company works well no negative numbers. Profit of the next few years should also be very good.

$V (+1,12 %) I liked to have a payment service company where little risk is and according to figures Visa is from me seen better positioned than Mastercard.

$SIE (-2,83 %) I wanted to buy actually only that I have not everything in Us company, I am currently but not quite convinced.

$PETR3 (-1,41 %) Since I am a small gambler I would like to invest a small part here. It simply attracts with the high dividend and if the oil business is still profitable for a while it could be worthwhile.

In addition, half of the company belongs to the state of Brazil.

Yes that's it, I am not a stock expert, I hope for an honest opinion.

Thanks to @DividendenWaschbaer

Good day to you,

I do not know if anyone can read this, but I would appreciate an honest opinion.

Per company I would invest 1000-2000

$LIN

$RACE (-0,8 %)

$V (+1,12 %)

$MCD (+1,08 %)

$MDLZ (+0,75 %)

$LNG (+0,16 %) or $EQNR (-0,65 %)

$SIE (-2,83 %)

$AZO (-1,7 %)

$ENEL (-0,1 %)

I have a long watchlist that I have been keeping for a long time and I have picked out the best ones in my opinion.

I would be happy for an opinion