AZO

Autozone Inc

Consumer


Presented:01/30/2019
Price:$843.17
Cap:$21.25B
Current Price:$3,100.00
Cap:$52.96B

Presented

Date01/30/2019
Price$843.17
Market Cap$21.25B
Ent Value$26.45B
P/E Ratio16.12x
Book ValueN/A
Div Yield0%
Shares O/S25.21M
Ave Daily Vol348,296
Short Int2.92%

Current

Price$3,100.00
Market Cap$52.96B
AutoZone, Inc. engages in the provision of retail and distribution of automotive replacement parts and accessories. It operates through the Auto Parts Locations and Other segments. The Auto Parts Locations segment provides automotive parts and accessories through the company's stores in the U.S., Puerto Rico, Mexico, and Brazil. The Other segment consists of ALLDATA, which produces, sells, and maintains diagnostic and repair information software used in the automotive repair industry. The company was founded by Joseph R. Hyde, III on July 4, 1979 and is headquartered in Memphis, TN.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), AutoZone Inc (AZO)

Highlights

The presenter is bearish on the auto parts aftermarket and short shares of AutoZone Inc (AZO). Despite a recent uptick in sentiment (AZO +17% since mid-October), he thinks unsustainable profitability catalysts and secular shifts in the industry create an uneven risk/ reward opportunity. Viewing the current share price of ~$839 (14.5x and 10.5x forward earnings and EBITDA, respectively) as overvalued, he expects the stock to fall 30% or more “pretty quickly” in the event of an earnings miss.

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Idea Discussion

Commentor 1 - 2 weeks ago

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