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. AutoZone is the largest retailer of automotive parts in the U.S., with about 3,505 stores in 49 states and 73 stores in Mexico. Consolidation in the industry has resulted in the top five players having around a 35% market share. AutoZone is the largest of the five, with the most geographic diversity in the U.S. This has allowed the company to take advantage of economies of scale in purchasing and advertising. The company's
