AZO - Embedded Expectations Analysis - 2020 11 27
AutoZone, Inc. (AZO:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.2x Uniform P/E. At these levels, the market has expectations for profitability to remain stable, and management is confident about their capex, customer service, and battery businessSpecifically, management generated an excitement marker when saying they are learning how to operate effectively amidst market volatility. In addition, they are confident that capex spending will continue to decline. Management is also confident in their ability to service their customers amidst the pandemic. Furthermore, they are confident their battery business advanced due to batteries discharged and that car mileage will eventually improve
AutoZone is a retailer and a distributor of automotive replacement parts and accessories. The company operates stores in the United States, including Puerto Rico and Saint Thomas, Mexico, and Brazil. Each store carries a product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. In addition, the company has a commercial sales program that provides commercial credit and delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts. The company also sells the ALLDATA brand automotive diagnostic and repair software.
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