Leading position in the retail auto parts aftermarket; Generates healthy free operating cash flow; and Good operating margins compared with industry peers. Operates in the highly competitive auto parts industry; Flat-to-slightly negative same-store sales in recent years; History of aggressive share repurchases; and Older store base compared with peers such as Advance Auto Parts Inc. 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 historically aggressive share repurchase activity and soft same-store sales in recent years. AutoZone is the largest retailer of automotive parts in the U.S., with more than 3,655 stores in
