netrashetty
Netra Shetty
Auto-Owners Insurance is a Fortune 500 Company, and has been every year since 2002. The company was founded in 1916 by Vernon Moulton in Mount Pleasant, Michigan. Today, it is headquartered in Delta Township, Michigan and has over 65 full service and claims branches nationwide. Although the name suggests only auto insurance is provided, it actually provides many lines of insurance including property, liability, auto, garage, workers compensation, farm, and life. It has been rated by J.D. Power and Associates for having the "highest claims satisfaction" in auto insurance for 2008, 2009 and 2010.[2] Subsidiary Companies include: Auto-Owners Life Insurance Company, Home-Owners Insurance Company, Owners-Insurance Company, Property-Owners Insurance Company, and Southern-Owners Insurance Company. Its infrastructure is primarily mainframe-based.
AutoZone (NYSE:AZO) is the largest U.S. retailer of automotive parts and accessories to do-it-yourself (DIY) customers by number of stores. During FY 2009, AutoZone operated over 4,000 stores, the majority (96%) of which are in the United States and Puerto Rico.[1] The company places stores in regions that have large number of vehicles seven years old and older because of these cars’ need for repairs and maintenance. While the company seeks to open stores in high-traffic areas, AutoZone is largely a destination retailer - a retailer that generates its own traffic instead of relying on other nearby stores’ traffic base.[2]
Operating in a mature and fragmented marketplace, AutoZone’s growth has been largely dependent upon increases in store count rather than its same store sales which have been lagging over the past 5 years. In addition, Autozone has been facing pressure in a consolidating auto parts manufacturer industry (related to the woes of the Big Three automakers); fewer auto parts manufacturers reduces the pricing power the company enjoys as the largest auto parts retailer in the U.S. because the company now has fewer suppliers to choose form. Finally, in the longer term, the company may see decreased demand in auto parts due to continually rising oil prices, which could decrease the mileage driven by American and thus decrease the demand for car repairs and maintenance.
Business and Financial Metrics
When people buy fewer cars, they repair their old ones more often. The financial situation of Auto-Zone for the past year has been similarly positive, but is subject to risk as explained below and elaborated upon in the Trends and Forces section.
Contents
1 Business and Financial Metrics
1.1 Q1 FY2010 Summary
1.2 Q2 FY2010 Summary
1.3 Q3 FY2010 Summary
1.4 Q4 FY2010 Summary
1.5 Q1 FY2011 Earnings
2 Key Trends and Forces
2.1 O'Reilly Automotive (ORLY)'s explosive expansion could lower Autozone's margins
2.2 The development of Hybrid and Fuel Cell Vehicles and Electric Cars will provide both risk and opportunity for Autozone
2.3 Rising Oil Prices May Lead to Less Driving, Less Repairs
3 Competition and Market Share
4 Footnotes
The 10 year net margin chart alludes to AutoZone’s profitability. The margins have stopped growing and have leveled off, which shows that AutoZone’s core business model is stable in the 1 year time horizon at the very least. The advent new car technologies (electric or hydrogen fueled vehicles) may change AutoZone’s profitability over time, but it is difficult to say how without having seen critical adoption of any such auto-innovation.
Looking at Wikinvest's Operating Metrics [3] for the number of stores Autozone has been from year to year the primary industry player, though O'Reilly Automotive (ORLY) is quickly catching up. Also, the aggregate number of auto-repair stores is increasing. This makes sense, because fewer people are buying new cars and more people are looking to repair their old cars. Once people start buying new cars again, however, the aggregate effect will be an excess of auto-repair shops. This will increase competition over time and cause industry margins to lower, possibly damaging the profitability of Autozone depending on how it fares in this new competitive environment.
It is also important to note that Autozone has retired a large portion of its financing expenses. The impact on Autozone's cash flows is depicted on the Autozone Cash Flow page. [3]
AutoZone rode the boost to the auto-repair industry in order to implement a large share buyback. [4]
Investors can either view a share buyback as a sign of confidence in the corporate board, or a bluff (companies sometimes buy back shares to artificially increase their stock price so the management can exercise their stock options). The market responded positively to the share buyback which supports the view that Autozone’s confidence is justified. Despite the company’s confidence, the market does give Autozone a significantly lower P/E ratio than it does to O'Reilly Automotive (ORLY) and Advance Auto Parts (AAP) . Looking at the operating metrics pages for AutoZone (AZO) , O'Reilly Automotive (ORLY) and Advance Auto Parts (AAP) (the three big auto parts companies) one will notice that they are quite similar except for the growth rates, for which O’Reilly is dominating. This could be explained by any number of qualitative factors such as superior customer service, better marketing, or faster turnaround.
Q1 FY2010 Summary
Despite slowing sales growth, AutoZone was able to post a 9.1% rise in profit, or $143.3 million, for its fiscal first quarter.[5] AZO attributes this rise in profit to lowered gas prices which helped the company increase sales in the fourth quarter of FY2009.
Furthermore, consumers in the auto industry are particularly price sensitive during recessions as it is easier to delay purchase of vehicles than more price insensitive products such as groceries. As a result, consumers purchase car repair parts to fix current cars in place of purchasing new vehicles. This situation has therefore AZO to benefit, and has contributed largely to its profit increase this fiscal quarter. Domestic same-store sales therefore rose over 5%.[6]
Autozone was also able to commit its earnings to expansion throughout this period. In the three months up-to November 1, 2009, AZO opened 38 new stores in the U.S. and 5 in Mexico. [7] Furthermore, under AZO's share repurchase program, the company repurchased 1.4 million shares of its common stock for $204 million during the first reporting quarter.[8] Despite such positive growth, AZO's growth in sales is largely based on the temporary fix-it trend given the current economic trend; therefore, as economic factors stabilize, it is questionable whether individuals will continue to choose to fix old vehicles in place of purchasing new ones.
Q2 FY2010 Summary
Autozone posted earnings of $123.3 million in the second reporting quarter of FY2010, a 6% increase compared to $115.9 million of profit in the second reporting quarter of FY2009.[9] Autozone attributes these earnings to cost cutting and higher sales from new stores. Autozone's same-store-sales, defined as domestic stores open at least a year, rose 1 percent; this figure is much lower than the 6% increase in same-store sales during the prior-year period.[10] Overall, AZO benefited from the recession as consumers delayed buying new vehicles, instead holding onto existing cars longer. These existing old vehicles created higher demand for spare parts.
During second reporting fiscal quarter, AZO opened 24 new stores in the United States and 9 in Mexico.[11] As of the end of February 13, the company operated 4,289 stores, up from 4,141 a year earlier.[12] Autozone also completed a $88 million worth of share buybacks during this quarter, which reduced the total shares outstanding by 12%.[13] Gross margins also jumped from 49.7% to 50%, spurred by the 4% increase in revenue of $1.51 billion.[14]
Q3 FY2010 Summary
AZO posted $202.7 million of net income for the third reporting quarter of FY2010, a 16.7% increase compared to same quarter one fiscal year earlier.[15] This $4.12 per share net income was higher than the analyst consensus, which sat at around $3.59 as compiled by Bloomberg.[16]
In addition, AZO was able to cut inventories per store from $516,000 to $506,000, and AZO opened 21 new U.S. stores during the quarter which brings its total to more than 4,300 in the US and 212 in Mexico.[17] Further, AZO stocks rallied about 5% on news that domestic sales at stores-open-at-least-one-year increased 7.1%.[18]
AZO attributes strong sales of automotive replacement parts and several new store openings helped drive its profits.[19] As drivers during a recession tends to replace auto parts rather than buy new cars, AZO was able to thrive in an environment that catered to those needs. AZO is expected to continue to benefit from the rising demand of replacement parts in an uncertain economy as drivers continue to hold onto their older cars.[20]
Q4 FY2010 Summary
AZO reported an net income of $268.9 million for the fourth reporting quarter of FY2010, a 13.9% increase compared to same period last year.[21] Gross profit margin came to 50.5%, a 20 basis point jump from 50.3% last year's quarter.[22] Sales jumped 10% year over year to $2.45 billion, which was above the average $2.4 billion analyst consensus estimate figures. Similarly, same-store sales growth came to 6.7%.[23]
AZO attributes increased results to leveraging distribution costs due to higher sales and operating efficiencies. Further, the continued strength in DIY auto repair strengthened AZO's top line growth; the fact that the number of off-warranty vehicles and the average age of vehicles on the road at 10.2 years at all-time highs is testament to this factor.[24] Given this sales volume, operating margin for this quarter also was able to expand from 18.7% to 19.3% this reporting quarter, as the firm was able to benefit from supply-chain efficiencies.[25]
Q1 FY2011 Earnings
AZO posted earnings of $172 million, up $28.8 million or 20.1% compared to same period last year.[26] This $3.77 EPS figure beat analyst consensus estimates of $3.43 by 33.7%. Sales further went up 12.7% to $1.8 billion compared to same quarter last year.[27] AZO attributes domestic same store sales, which were up 9.5% during the first quarter, for increased performance. Gross margins also widened to 50.7% from 50.3% as its Duralast product offerings further entered the market.[28]
The company currently holds the largest market share of U.S. auto parts sales. As customers continue to be more focused on maintaining cars than buying new vehicles, AZO will continue to capitalize on this industry growth. AZO also takes advantage of repair shops as owners of more complex vehicles choose to have work performed there; sales in US car repair shops remain 13% of total sales, but have risen 21% in this quarter compared to last year.[29] AZO opened 15 stores in the US and 3 in Mexico, culminating to 4,645 locations by the end of the quarter, compared to 4,458 same quarter last year.[30]
Key Trends and Forces
O'Reilly Automotive (ORLY)'s explosive expansion could lower Autozone's margins
O'Reilly Automotive (ORLY) grew its number of stores by 79% this year (from 1,830 to 3,290). While Autozone still has 4,229 stores, it grew only 4% this year despite favorable economic tailwinds. This means lower margins for AutoZone (AZO) for two reasons:
Lower pricing power. More stores means more competition. More competition means that customers can bargain for lower repair prices. This will be exacerbated when the economy picks back up because new cars will need fewer repairs, driving demand down lower along with margins.
Higher variable expenses. In an attempt to keep a higher price point, all parties will try to differentiate themselves with better service, new initiatives (like servicing Electric Cars), and faster turnaround time. As the cost structure increases, margins will decrease.
One way to counter this trend is AutoZone's position in Mexican markets. From the period between July 2004 and July 2009, the index of Mexican stocks, the IShares MSCI Mexico Index Fund (EWW) denominated in dollars has outperformed the S&P 500 by over 100%. As the Mexican economy picks up, and its middle class grows, so will its demand for automobiles and therefore automobile repairs. AutoZone (AZO) has over 150 stores in Mexico currently so is ideally positioned to take part in this trend.
The development of Hybrid and Fuel Cell Vehicles and Electric Cars will provide both risk and opportunity for Autozone
As the basic mechanics of cars changes, Autozone will need to train its employees and buy new equipment. The changing landscape of cars will inevitably provide opportunities for new entry. Autozone's favorable Economies of scale will be less significant in a changing market and add business risk. At the same time, its superior capital basis and market capitalization could give it the resources to adapt. When mass adoption of new automobile technology begins in full, watch how well Autozone deals with the change in comparison with its competitors.
At the same time, AZO's suppliers have been experiencing a wave of consolidation. Auto part manufacturers, which operate in a generally troubled industry, have been consolidating via mergers in recent years.[31] A more concentrated vendor base for auto part retailers, then, limits the number of companies that the firm can purchase inventory from, and may provide suppliers with greater pricing power, putting pressure on AZO’s margins.
Rising Oil Prices May Lead to Less Driving, Less Repairs
As oil prices continue to increase, drivers may begin to purchase newer, more fuel efficient vehicles, including hybrid and fuel cell vehicles and/or limit their driving mileage. Greater numbers of new car purchases and fewer drivers accumulating heavy mileage mean that consumer demand for repairs and new parts may be hampered, thus diminishing AZO's sales.
Also, when individuals are capital constrained because of the recession, they repair their old cars instead of buying new ones. If demand for automobiles picks back up, then old cars will get sent to the junkyard instead of boosting AutoZone (AZO) revenue figures.
Competition and Market Share
The do-it-yourself (DIY) auto-part aftermarket retailer industry is a highly competitive and generally fragmented $35 billion/year market.[32]. Companies compete on a mix of customer service, product selection, price, and location.
AZO competes with other major do-it-yourself retailers, like Advance Auto Parts (AAP) , O'Reilly Automotive (ORLY) , CSK Auto (CAO), Pep Boys-Manny, Moe & Jack (PBY), and AutoNation (AN). It also competes with a highly fragmented base of small, single store mom-and-pop shops and do-it-yourself repair destinations, and indirectly with full-service mechanics and other automotive destinations that sell parts or repair vehicles.
Company Standings for FY2009 Net Profit Margin Operating Margin EBITD Margin Return on Average Assets Employees
AutoZone (AZO) 9.64% 17.25% 19.90% 12.43% 34,200
Advance Auto Parts (AAP) 5.00% 8.39% 11.18% 8.96% 27,400
O'Reilly Automotive (ORLY) 6.34% 11.09% 14.33% 6.85% 44,435
Pep Boys-Manny, Moe & Jack (PBY)** 1.26% 2.99% 6.68% 1.58% 12,169
AutoZone (NYSE:AZO) is the largest U.S. retailer of automotive parts and accessories to do-it-yourself (DIY) customers by number of stores. During FY 2009, AutoZone operated over 4,000 stores, the majority (96%) of which are in the United States and Puerto Rico.[1] The company places stores in regions that have large number of vehicles seven years old and older because of these cars’ need for repairs and maintenance. While the company seeks to open stores in high-traffic areas, AutoZone is largely a destination retailer - a retailer that generates its own traffic instead of relying on other nearby stores’ traffic base.[2]
Operating in a mature and fragmented marketplace, AutoZone’s growth has been largely dependent upon increases in store count rather than its same store sales which have been lagging over the past 5 years. In addition, Autozone has been facing pressure in a consolidating auto parts manufacturer industry (related to the woes of the Big Three automakers); fewer auto parts manufacturers reduces the pricing power the company enjoys as the largest auto parts retailer in the U.S. because the company now has fewer suppliers to choose form. Finally, in the longer term, the company may see decreased demand in auto parts due to continually rising oil prices, which could decrease the mileage driven by American and thus decrease the demand for car repairs and maintenance.
Business and Financial Metrics
When people buy fewer cars, they repair their old ones more often. The financial situation of Auto-Zone for the past year has been similarly positive, but is subject to risk as explained below and elaborated upon in the Trends and Forces section.
Contents
1 Business and Financial Metrics
1.1 Q1 FY2010 Summary
1.2 Q2 FY2010 Summary
1.3 Q3 FY2010 Summary
1.4 Q4 FY2010 Summary
1.5 Q1 FY2011 Earnings
2 Key Trends and Forces
2.1 O'Reilly Automotive (ORLY)'s explosive expansion could lower Autozone's margins
2.2 The development of Hybrid and Fuel Cell Vehicles and Electric Cars will provide both risk and opportunity for Autozone
2.3 Rising Oil Prices May Lead to Less Driving, Less Repairs
3 Competition and Market Share
4 Footnotes
The 10 year net margin chart alludes to AutoZone’s profitability. The margins have stopped growing and have leveled off, which shows that AutoZone’s core business model is stable in the 1 year time horizon at the very least. The advent new car technologies (electric or hydrogen fueled vehicles) may change AutoZone’s profitability over time, but it is difficult to say how without having seen critical adoption of any such auto-innovation.
Looking at Wikinvest's Operating Metrics [3] for the number of stores Autozone has been from year to year the primary industry player, though O'Reilly Automotive (ORLY) is quickly catching up. Also, the aggregate number of auto-repair stores is increasing. This makes sense, because fewer people are buying new cars and more people are looking to repair their old cars. Once people start buying new cars again, however, the aggregate effect will be an excess of auto-repair shops. This will increase competition over time and cause industry margins to lower, possibly damaging the profitability of Autozone depending on how it fares in this new competitive environment.
It is also important to note that Autozone has retired a large portion of its financing expenses. The impact on Autozone's cash flows is depicted on the Autozone Cash Flow page. [3]
AutoZone rode the boost to the auto-repair industry in order to implement a large share buyback. [4]
Investors can either view a share buyback as a sign of confidence in the corporate board, or a bluff (companies sometimes buy back shares to artificially increase their stock price so the management can exercise their stock options). The market responded positively to the share buyback which supports the view that Autozone’s confidence is justified. Despite the company’s confidence, the market does give Autozone a significantly lower P/E ratio than it does to O'Reilly Automotive (ORLY) and Advance Auto Parts (AAP) . Looking at the operating metrics pages for AutoZone (AZO) , O'Reilly Automotive (ORLY) and Advance Auto Parts (AAP) (the three big auto parts companies) one will notice that they are quite similar except for the growth rates, for which O’Reilly is dominating. This could be explained by any number of qualitative factors such as superior customer service, better marketing, or faster turnaround.
Q1 FY2010 Summary
Despite slowing sales growth, AutoZone was able to post a 9.1% rise in profit, or $143.3 million, for its fiscal first quarter.[5] AZO attributes this rise in profit to lowered gas prices which helped the company increase sales in the fourth quarter of FY2009.
Furthermore, consumers in the auto industry are particularly price sensitive during recessions as it is easier to delay purchase of vehicles than more price insensitive products such as groceries. As a result, consumers purchase car repair parts to fix current cars in place of purchasing new vehicles. This situation has therefore AZO to benefit, and has contributed largely to its profit increase this fiscal quarter. Domestic same-store sales therefore rose over 5%.[6]
Autozone was also able to commit its earnings to expansion throughout this period. In the three months up-to November 1, 2009, AZO opened 38 new stores in the U.S. and 5 in Mexico. [7] Furthermore, under AZO's share repurchase program, the company repurchased 1.4 million shares of its common stock for $204 million during the first reporting quarter.[8] Despite such positive growth, AZO's growth in sales is largely based on the temporary fix-it trend given the current economic trend; therefore, as economic factors stabilize, it is questionable whether individuals will continue to choose to fix old vehicles in place of purchasing new ones.
Q2 FY2010 Summary
Autozone posted earnings of $123.3 million in the second reporting quarter of FY2010, a 6% increase compared to $115.9 million of profit in the second reporting quarter of FY2009.[9] Autozone attributes these earnings to cost cutting and higher sales from new stores. Autozone's same-store-sales, defined as domestic stores open at least a year, rose 1 percent; this figure is much lower than the 6% increase in same-store sales during the prior-year period.[10] Overall, AZO benefited from the recession as consumers delayed buying new vehicles, instead holding onto existing cars longer. These existing old vehicles created higher demand for spare parts.
During second reporting fiscal quarter, AZO opened 24 new stores in the United States and 9 in Mexico.[11] As of the end of February 13, the company operated 4,289 stores, up from 4,141 a year earlier.[12] Autozone also completed a $88 million worth of share buybacks during this quarter, which reduced the total shares outstanding by 12%.[13] Gross margins also jumped from 49.7% to 50%, spurred by the 4% increase in revenue of $1.51 billion.[14]
Q3 FY2010 Summary
AZO posted $202.7 million of net income for the third reporting quarter of FY2010, a 16.7% increase compared to same quarter one fiscal year earlier.[15] This $4.12 per share net income was higher than the analyst consensus, which sat at around $3.59 as compiled by Bloomberg.[16]
In addition, AZO was able to cut inventories per store from $516,000 to $506,000, and AZO opened 21 new U.S. stores during the quarter which brings its total to more than 4,300 in the US and 212 in Mexico.[17] Further, AZO stocks rallied about 5% on news that domestic sales at stores-open-at-least-one-year increased 7.1%.[18]
AZO attributes strong sales of automotive replacement parts and several new store openings helped drive its profits.[19] As drivers during a recession tends to replace auto parts rather than buy new cars, AZO was able to thrive in an environment that catered to those needs. AZO is expected to continue to benefit from the rising demand of replacement parts in an uncertain economy as drivers continue to hold onto their older cars.[20]
Q4 FY2010 Summary
AZO reported an net income of $268.9 million for the fourth reporting quarter of FY2010, a 13.9% increase compared to same period last year.[21] Gross profit margin came to 50.5%, a 20 basis point jump from 50.3% last year's quarter.[22] Sales jumped 10% year over year to $2.45 billion, which was above the average $2.4 billion analyst consensus estimate figures. Similarly, same-store sales growth came to 6.7%.[23]
AZO attributes increased results to leveraging distribution costs due to higher sales and operating efficiencies. Further, the continued strength in DIY auto repair strengthened AZO's top line growth; the fact that the number of off-warranty vehicles and the average age of vehicles on the road at 10.2 years at all-time highs is testament to this factor.[24] Given this sales volume, operating margin for this quarter also was able to expand from 18.7% to 19.3% this reporting quarter, as the firm was able to benefit from supply-chain efficiencies.[25]
Q1 FY2011 Earnings
AZO posted earnings of $172 million, up $28.8 million or 20.1% compared to same period last year.[26] This $3.77 EPS figure beat analyst consensus estimates of $3.43 by 33.7%. Sales further went up 12.7% to $1.8 billion compared to same quarter last year.[27] AZO attributes domestic same store sales, which were up 9.5% during the first quarter, for increased performance. Gross margins also widened to 50.7% from 50.3% as its Duralast product offerings further entered the market.[28]
The company currently holds the largest market share of U.S. auto parts sales. As customers continue to be more focused on maintaining cars than buying new vehicles, AZO will continue to capitalize on this industry growth. AZO also takes advantage of repair shops as owners of more complex vehicles choose to have work performed there; sales in US car repair shops remain 13% of total sales, but have risen 21% in this quarter compared to last year.[29] AZO opened 15 stores in the US and 3 in Mexico, culminating to 4,645 locations by the end of the quarter, compared to 4,458 same quarter last year.[30]
Key Trends and Forces
O'Reilly Automotive (ORLY)'s explosive expansion could lower Autozone's margins
O'Reilly Automotive (ORLY) grew its number of stores by 79% this year (from 1,830 to 3,290). While Autozone still has 4,229 stores, it grew only 4% this year despite favorable economic tailwinds. This means lower margins for AutoZone (AZO) for two reasons:
Lower pricing power. More stores means more competition. More competition means that customers can bargain for lower repair prices. This will be exacerbated when the economy picks back up because new cars will need fewer repairs, driving demand down lower along with margins.
Higher variable expenses. In an attempt to keep a higher price point, all parties will try to differentiate themselves with better service, new initiatives (like servicing Electric Cars), and faster turnaround time. As the cost structure increases, margins will decrease.
One way to counter this trend is AutoZone's position in Mexican markets. From the period between July 2004 and July 2009, the index of Mexican stocks, the IShares MSCI Mexico Index Fund (EWW) denominated in dollars has outperformed the S&P 500 by over 100%. As the Mexican economy picks up, and its middle class grows, so will its demand for automobiles and therefore automobile repairs. AutoZone (AZO) has over 150 stores in Mexico currently so is ideally positioned to take part in this trend.
The development of Hybrid and Fuel Cell Vehicles and Electric Cars will provide both risk and opportunity for Autozone
As the basic mechanics of cars changes, Autozone will need to train its employees and buy new equipment. The changing landscape of cars will inevitably provide opportunities for new entry. Autozone's favorable Economies of scale will be less significant in a changing market and add business risk. At the same time, its superior capital basis and market capitalization could give it the resources to adapt. When mass adoption of new automobile technology begins in full, watch how well Autozone deals with the change in comparison with its competitors.
At the same time, AZO's suppliers have been experiencing a wave of consolidation. Auto part manufacturers, which operate in a generally troubled industry, have been consolidating via mergers in recent years.[31] A more concentrated vendor base for auto part retailers, then, limits the number of companies that the firm can purchase inventory from, and may provide suppliers with greater pricing power, putting pressure on AZO’s margins.
Rising Oil Prices May Lead to Less Driving, Less Repairs
As oil prices continue to increase, drivers may begin to purchase newer, more fuel efficient vehicles, including hybrid and fuel cell vehicles and/or limit their driving mileage. Greater numbers of new car purchases and fewer drivers accumulating heavy mileage mean that consumer demand for repairs and new parts may be hampered, thus diminishing AZO's sales.
Also, when individuals are capital constrained because of the recession, they repair their old cars instead of buying new ones. If demand for automobiles picks back up, then old cars will get sent to the junkyard instead of boosting AutoZone (AZO) revenue figures.
Competition and Market Share
The do-it-yourself (DIY) auto-part aftermarket retailer industry is a highly competitive and generally fragmented $35 billion/year market.[32]. Companies compete on a mix of customer service, product selection, price, and location.
AZO competes with other major do-it-yourself retailers, like Advance Auto Parts (AAP) , O'Reilly Automotive (ORLY) , CSK Auto (CAO), Pep Boys-Manny, Moe & Jack (PBY), and AutoNation (AN). It also competes with a highly fragmented base of small, single store mom-and-pop shops and do-it-yourself repair destinations, and indirectly with full-service mechanics and other automotive destinations that sell parts or repair vehicles.
Company Standings for FY2009 Net Profit Margin Operating Margin EBITD Margin Return on Average Assets Employees
AutoZone (AZO) 9.64% 17.25% 19.90% 12.43% 34,200
Advance Auto Parts (AAP) 5.00% 8.39% 11.18% 8.96% 27,400
O'Reilly Automotive (ORLY) 6.34% 11.09% 14.33% 6.85% 44,435
Pep Boys-Manny, Moe & Jack (PBY)** 1.26% 2.99% 6.68% 1.58% 12,169