AutoZone: The Compounding Machine Continues Accelerating
Summary
- Shares are up nearly 50% in the last year, but the growth story and compounding effects remain, creating a business that continues getting better for investors.
- Consider the following: 30% shares retired in 5 years, 30% CAGR free cash flow growth in 5 years, and a current 77% return on invested capital.
- CEO Rhodes: "This is the most remarkably resilient business I have ever seen. When we have a recession, our business goes up".
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AZO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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