AutoZone vs Murphy USA
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KIRA’s take AI analyst
I put AutoZone and Murphy USA side by side, using each one’s latest annual report. Here is what stands out:
- Murphy USA is the larger business, with $19.4B of revenue in fiscal 2025 against $18.9B for AutoZone.
- AutoZone grew revenue faster (2.4%, against −4.3%).
- AutoZone kept more of each dollar of sales as operating profit (19.1% operating margin, against 3.7%).
- AutoZone turned more of its sales into free cash flow (9.5% FCF margin, against 1.9%).
- AutoZone earned a higher return on the capital invested in it (58.2%, against 20.5%).
- Investors pay more for each dollar of AutoZone’s earnings: a P/E of 21.9x against 16.5x for Murphy USA.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
AutoZone
AZO
7/9
Revenue growthOperating marginNet marginFCF marginReturn on capitalPiotroski F-scoreNet debt / EBITDA
Murphy USA
MUSA
2/9
5-year growthShare count change
Side by side
Best in the row
| Latest fiscal year | AZO FY25 | MUSA FY25 |
|---|---|---|
| Size | ||
| Market cap | $53.9B | $10.0B |
| Revenue | $18.9B | $19.4B |
| Free cash flow | $1.8B | $374M |
| Net income | $2.5B | $471M |
| Growth | ||
| Revenue growth | 2.4% | −4.3% |
| 5-year growth | 8.4% | 11.5% |
| Share count change | −3.1% | −6.3% |
| Profitability | ||
| Gross margin | 52.6% | — |
| Operating margin | 19.1% | 3.7% |
| Net margin | 13.2% | 2.4% |
| FCF margin | 9.5% | 1.9% |
| Return on capital | 58.2% | 20.5% |
| Return on equity | — | 64.3% |
| Balance sheet | ||
| Net debt | $8.9B | $2.2B |
| Net debt / EBITDA | 2.1x | 2.2x |
| Dividends and buybacks | $1.6B | $691M |
| Valuation & quality | ||
| P/E | 21.9x | 16.5x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.