Leading position in retail auto parts aftermarket, an industry that should remain strong over the near to medium term; Large and diverse store footprint and efficient distribution infrastructure; Generates healthy and predictable cash flow; and Strong operating margins compared with industry peers. Aggressive financial policy, particularly with respect to share repurchases; Demand sensitivity to fuel price changes; and Historically weak or negative organic growth in the Do-It-Yourself (DIY) segment of the industry, which could re-emerge over time. The ratings on AutoZone Inc. reflect the company's solid position in the generally stable but highly competitive retail automotive parts aftermarket industry, consistent operating performance, and strong profitability measures. These strengths are somewhat tempered by management's aggressive share repurchase activity, sensitivity to fuel
