Leading position in the retail auto parts aftermarket; Generates healthy free operating cash flow; and Good operating margins compared to industry peers. Operates in the highly competitive auto parts industry; Has been experiencing flat to slightly negative same-store sales in recent years; and Aggressive share repurchase activity. The ratings on Memphis, Tenn.-based AutoZone Inc. reflect the company's leading position in the stable but highly competitive retail automobile parts aftermarket, consistent operating performance, and strong profitability measures. These strengths are somewhat tempered by management's aggressive share repurchase activity, which has been partially financed with debt in previous years. AutoZone is the largest retailer of automotive parts in the U.S., with 3,612 stores in 49 states and 84 stores in Mexico. Consolidation
