Share buybacks effect on Autozone ($AZO) EPS
Share buybacks usually don't get the same attention as dividends, but the results in the long-term can be amazing. As an example, take a look at Autozone ($AZO). That's a good company, with a net income CAGR of 10.43% since 2009, that looks solid, but not spectacular. But when you look at the shares outstanding, $AZO has reduced by over 60% in the same period, that resulted in an amazing 18.95% EPS CAGR.

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Autozone shares outstanding since 2009

That's a lot for any standard you want to use, especially for a relatively common business. Sometimes we found great results in companies that don't look that attractive in a first glance. Ordinary business can deliver surprising results when they are consistent in the long run.

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$AZO returns since 2009 compared to SP500.
Jose Tannus's avatar
Boa noite Professor, ainda eu aprendo usar esta rede social
Mako's avatar
Amazing insight as always!
Danilo Pereira's avatar
Straightforward explanation as I prefer.