AutoZoneMEX:AZO +3.80%91 Interest Coverage is 8.36 as of May. 2026, which is 28% below its 10-year median of 11.61. GuruFocus rates MEX:AZO with a GF Score™ of 91/100 and a GF Value™ of MXN64,124.84 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,067 Vehicles & Parts companies, AutoZone ranks worse than 52.01% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. AutoZone's
Operating Income
for the
three
months ended in May. 2026 was MXN16,027 Mil. AutoZone's Interest Expense for the
three
months ended in May. 2026 was MXN-1,917 Mil.
AutoZone's interest coverage for the quarter that ended in May. 2026 was 8.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for AutoZone's Interest Coverage or its related term are showing as below:
MEX:AZO'
s Interest Coverage Range Over the Past 10 Years
Min: 7.42 Med: 11.61 Max: 16.55
Current: 7.46
MEX:AZO's Interest Coverage is ranked worse than 52.01% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.31
vs MEX:AZO: 7.46
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
AutoZone Interest Coverage Related Terms
AutoZone Interest Coverage Historical Data
* Premium members only.
The historical data trend for AutoZone's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:AZO vs ORLY, GPC, BWA: Interest Coverage Comparison
For the Auto Parts subindustry, AutoZone's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AutoZone Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, AutoZone's Interest Coverage distribution charts can be found below:
* The bar in red indicates where AutoZone's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AutoZone (MEX:AZO) has a Interest Coverage of 8.36 as of May. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AutoZone and its competitors. This is 28% below median its historical median of 11.61. Over the past decade, AutoZone's Interest Coverage has ranged from 7.42 to 16.55. According to the industry distribution chart, AutoZone ranks #555 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 52%.
Is AutoZone's Interest Coverage too high?
AutoZone's current Interest Coverage of 8.36 is 28% below median its 10-year median of 11.61. Over the past 10 years, this metric has ranged from a low of 7.42 to a high of 16.55. The Vehicles & Parts industry median Interest Coverage is 8.31. AutoZone's value of 8.36 is 0.6% above this industry median. Based on the distribution chart, AutoZone ranks #555 out of 1067 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, AutoZone has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AutoZone's Interest Coverage compare to ORLY and GPC?
According to the Vehicles & Parts industry distribution chart, AutoZone ranks #555 out of 1067 companies for Interest Coverage. This places AutoZone in the lower half of its industry. The industry median Interest Coverage is 8.31. AutoZone's value of 8.36 is 0.6% above this benchmark. Historically, AutoZone's own Interest Coverage has ranged from 7.42 to 16.55 over the past decade. While the company's 10-year median is 11.61 vs. the industry median of 8.31, AutoZone has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AutoZone's current Interest Coverage of 8.36 is 0.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on AutoZone and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AutoZone's current Interest Coverage is 8.36, which is 28% below median its own 10-year median of 11.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AutoZone stock overvalued right now?
Based on GuruFocus' analysis, AutoZone (MEX:AZO) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN64,124.84, compared to a current price of MXN55,255.00 — trading 13.8% below its estimated fair value. The current Interest Coverage is 8.36, which is 28% below median its 10-year median of 11.61 and 0.6% above the Vehicles & Parts industry median of 8.31. AutoZone's overall GF Score™ is 91/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For AutoZone (MEX:AZO), the current Interest Coverage is 8.36 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AutoZone (MEX:AZO) Overvalued in 2026?
Based on GuruFocus' analysis, AutoZone stock appears to be undervalued.
The current stock price of MXN55,255.00 is trading 13.8% below its estimated GF Value™ of MXN64,124.84.
GuruFocus considers AutoZone to be Modestly Undervalued.
Key valuation signals for MEX:AZO:
Interest Coverage: 8.36 (28% below median its 10-year median of 11.61)
GF Value™: MXN64,124.84 vs. price of MXN55,255.00 (13.8% below fair value)
Industry Position: 0.6% above the Vehicles & Parts median (#555 of 1067)
No single metric tells the full story. See the MEX:AZO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1979, AutoZone is the largest US-based retailer of aftermarket automotive parts and accessories, operating over 7,600 stores and generating roughly $18.9 billion in fiscal 2025 sales. Beyond its primary home market (88% of total revenue), the company also maintains a growing presence in Mexico and Brazil. AutoZone caters to two core customer segments: do-it-yourself, which account for about 69% of its domestic sales, and commercial do-it-for-me customers, which represent the remaining 31%.
91GF Score
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