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AutoZone, Inc. Message Board

  • value529 value529 Dec 8, 2004 8:30 AM Flag

    P/E is 12.0

    AZO's P/E with dilution is now 12.0 ...

    EPS = (209.4+143.4+91.7+123.0)/(80.6) = $7.04 per share

    P/E = 84.67/7.04 = 12.0

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    • Value:
      I am trying to understand the Q1 report. I believe the key to this company is in the buy back. So here is what is says:

      "Under its ongoing share repurchase program, AutoZone repurchased 0.4 million shares of its common stock for $30 million during the first quarter, at an average price of $84 per share. Since 1998, cumulative share repurchases have totaled $3.7 billion, or 82.6 million shares at an average price of $45 per share."

      How can you buy back 400K shares at $84 per share and spend only 30M? shouldn't it be $75 per share?

      Also, why is there only 400K shares this Q? At the rate of 82.6M shares over 5 years (20 Quaters), 0.4M shares represent a 90% reduction in the effort to buy back:

      100%-(0.4M/(82.6M/20))=90.2%

      Are they hiding the cash to do more buy back in the future? Why not now, unless they expect AZO prices to go lower soon? Hope not.

 
AZO
765.75-1.63(-0.21%)May 27 4:00 PMEDT