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AutoZone Inc.
Brent Ozenbaugh Jennifer Pray Meredith Price Lindsey Price

April 27, 2004

You’re About To Enter…

The AutoZone
Fundamental Highlights • Offers diversification in our discretionary holdings through investment in the low volatility automotive industry. • Industry characterized by consistent demand and potential market share growth. • Top line growth drivers in place to meet management goals. Valuation Highlights • Highest operating margins and EBITDA margins among comparable companies. • PEG ratio of 1.15 is well below the comparable average of 1.66. • 21.1% undervalued on a DCF basis.
Exhibit 1

Financial Summary
(In Millions except for per share data)

Price: $83.26 Price Target: $105.53 52-Week Range: $103.53 -$73.80 Shares Outstanding: 88.71 Market Cap.: $7,386 Beta: 0.93 EPS (CFY): $5.83 EPS (NFY): $6.58 AZO v. Comparable Avg. PEG: 1.15 v. 1.66 5yr Growth in EPS: 57.4% v. 31.2% P/E Ratio (CFY): 14.72 v. 15.29 P/E Ratio (NFY): 13.21 v. 13.48 Gross Margin (LFY): 48.1% v. 33.8% EBITDA Margin: 20.8% v. 8.7% ROE: 138.5% v. 14.8% ROA: 27.9% v. 12.5%
Source: Value Line, Multex Investor

Company Profile____
Discretionary, Auto Parts AutoZone, Inc. (AZO) is a specialty retailer of automotive parts and accessories, with most of its sales to doit-yourself customers. As of August 30, 2003, the Company operated 3,219 domestic auto parts stores in 48 states and the District of Columbia and 49 auto parts stores in Mexico. AutoZone also sells parts and accessories online at Each of its stores carries a product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items and accessories. The Company also has a commercial sales program in the United States that...

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