The ratings on 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 tempered, somewhat, by increased leverage over the past few years driven by growth in share repurchase activity. Memphis, Tenn.-based AutoZone is the largest retailer of automotive parts in the U.S., with more than 3,000 stores in 42 U.S. states and Mexico. Although consolidation in the industry has resulted in five players maintaining significant market share, AutoZone remains the largest and most geographically diverse in the U.S., which allows the company to leverage purchasing and advertising costs. The company's core do-it-yourself market segment has grown about 5% annually and represents about
