It was for this reason that AutoZone began to aggressively explore new businesses and opportunities, especially through acquisitions. In 1996 AutoZone expanded its consumer target to include commercial customers, such as professional automotive technicians and service stations. The company introduced a commercial program that provided credit and delivery to mechanics and technicians.
To do this, they enlisted the help of the investment banking firm Kohlberg Kravis Roberts & Company (KKR), which engineered the withdrawal of Malone & Hyde from the stock market. KKR was compensated with large blocks of Auto Shack stock, in effect becoming the owner of the company. Style is an investment factor that has a meaningful impact on investment risk and returns.
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In addition, the company tried to locate its stores in neighborhoods where people who worked on their cars lived and to keep its stores open at hours when its customers were not otherwise occupied at work. This initially meant that many Auto Shack stores stayed open all night. Auto Shack stores were clean and bright, and the company emphasized friendly, helpful service.
- Despite its new corporate status, Auto Shack continued to grow at a dramatic rate.
- In April 1991 AutoZone ended its tenure as a privately held company when shares were offered for sale on the New York Stock Exchange.
- The company also intended to continue seeking out new opportunities, particularly in international markets.
- The Valucraft, Duralast, and Duralast Gold names are used on various other parts and accessories as well.
The retail chain offers both private-label products, including Duralast and Deutsch, and brand names. Geared primarily toward the do-it-yourself market, AutoZone also serves professional auto repair shops. AutoZone stores do not sell tires or provide repair service, but they do offer diagnostic testing best index funds 2023 for batteries, starters, and alternators. AutoZone sells heavy-duty truck parts through its subsidiary TruckPro L.P. And offers automotive diagnostic and repair software through ALLDATA Corp. An outlet was opened under the new name in Enid, Oklahoma, marking the company’s entry into yet another state.
Elon Musk’s company delivered 435,059 cars in the third quarter. The Valucraft, Duralast, and Duralast Gold names are used on various other parts and accessories as well. On August 17, 2012, AutoZone expanded into their 49th state Alaska by opening their 5,000th store in Wasilla, Alaska. Compare
AZO’s prtrend customer reviews 2021 historical performance
against its industry peers and the overall market. Seth Basham, Wedbush Securities Managing Director of Equity Research, joins Yahoo Finance Live anchors Brad Smith and Seana Smith to discuss AutoZone’s Q4 earnings which disappointmented on same-store…
AutoZone color codes
In this way the company was able to offer less expensive products to its customers. On this level Auto Shack was structured like a vertically integrated business, although it had not taken on the complications of a manufacturing operation. The company’s multiple time frame analysis supply lines were directed by product managers, who visited factories and worked closely with suppliers to ensure quality control on various parts. The company’s high volume of sales made it possible for specialized efforts like this to be efficient.
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In addition, Auto Shack’s advertising department participated in the effort to define and upgrade products and then attempted to win new customers for them. Despite its new corporate status, Auto Shack continued to grow at a dramatic rate. In 1985 the company opened an additional 68 stores and moved into North Carolina. Along with its standard format, Auto Shack also inaugurated an Express Parts Service that rushed auto parts to customers who called in over a toll-free service line. In this way the company was able to offer services to parts of the country that were not yet served by an Auto Shack store.
Unlocking Intrinsic Value: A Deep Dive into AutoZone Inc
So in saying goodbye to parent company Malone & Hyde, Hyde decided to change its name to AutoZone and its logo. The left part of the logo is complemented by an orange rectangle, which right part is cut diagonally and features several white lines of different thickness. The logo from the 1970s is definitely a prototype of the one we all know today.
Net income had risen to $44 million, an increase of 89 percent. 52 week low is the lowest price of a stock in the past 52 weeks, or one year. Autozone Inc. 52 week low is $2,165.05 as of October 03, 2023. 52 week high is the highest price of a stock in the past 52 weeks, or one year. Autozone Inc. 52 week high is $2,750.00 as of October 03, 2023.
Morningstar‘s Stock Analysis AZO
In 1992 the company upped its number of stores to 678 and made its first move into Wisconsin. Company sales topped $1 billion for the first time, allowing the company to continue its string of store openings without going into debt. More openings were made in another Midwest state, Michigan, in 1993.
The purchase allowed AutoZone to move easily into a new market, and within a year all Auto Palace shops had been converted to AutoZone stores. In May the company purchased TruckPro L.P., an independent U.S. distributor of heavy-duty truck parts that had 43 stores in 14 states. The acquisition provided AutoZone with a doorway into the truck parts business, a fragmented industry with no clear leader and thus similar to the auto parts industry when AutoZone had first begun.
AZO holds a better value than 76% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets. We anticipate raising our $2,070 fair value estimate for narrow-moat AutoZone by a low- to mid-single-digit percentage, mostly due to the time value of money. But with the shares trading in 2-star territory, we think the current price is predicated on loftier expectations that might prove difficult to achieve. According to 15 analysts, the average rating for AZO stock is “Buy.” The 12-month stock price forecast is $2,810.57, which is an increase of 13.04% from the latest price.
The company also intended to continue seeking out new opportunities, particularly in international markets. Research by AutoZone pointed to international demand, and the company believed that international markets could support AutoZone stores comparable in number to those in the United States. As AutoZone continued its rapid and aggressive expansion, its revenues continued to rise as well. Total revenues increased from $535.8 million in 1989 to $1.216 billion in 1993, and they showed no signs of slowing down.
The emblem encodes the markings of the roadway and traffic lights. Thanks to its products, broken cars can continue on their way. The style is kept, along with the main elements of the typeface. As for the color palette, of course, today it is more intense and bright, reflecting the company’s growth and energy. In December 1991 AutoZone held its first shareholders’ meeting, at which the company was able to announce that gross revenues had increased more than 20 percent in the previous year to reach $818 million.