AutoZone: High ROIC, Steady Demand, Modest Buy On EPS Compression
Summary
AutoZone benefits from the aging U.S. car fleet, driving steady demand for replacement parts and industry-leading operat...
AutoZone benefits from the aging U.S. car fleet, driving steady demand for replacement parts and industry-leading operating margins. AZO's consistent revenue growth, aggressive share buybacks, and exceptional return on invested capital highlight its strong shareholder value creation. Recent U.S. DIY sales weakness and margin pressures are concerns, but international growth and commercial segment expansion offer offsets.