Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts retailer AutoZone (NYSE:AZO) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at AutoZone's business, and see what CAPS investors are saying about the stock right now.

AutoZone facts

Headquarters (founded)

Memphis, Tenn. (1979)

Market Cap

$7.80 billion


Automotive retail

TTM Revenue

$6.79 billion


CEO William Rhodes, III (since 2005)
CFO William Giles (since 2006)

Compound Annual Revenue and Net Income Growth (over last five years)

3.8% and 3.3%

Cash / Debt

$94.3 million / $2.4 billion


Genuine Parts (NYSE:GPC)
O'Reilly Automotive (NASDAQ:ORLY)

CAPS members bearish on AZO also bearish on


CAPS members bullish on AZO also bullish on

Johnson & Johnson (NYSE:JNJ)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 212 of the 499 members who have rated AutoZone -- 42% -- believe the stock will underperform the S&P 500 going forward. These bears include All-Stars Junkyardhawg1985 and bullishbabo, both of whom are ranked in the top 4% of our community.

Just three days ago, Junkyardhawg1985 urged Fools to steer clear:

AutoZone should benefit from the reduction in new car sales causing more car repairs. This near term performance is already built into the stock price. At the end of the day though, AutoZone is a retailer.

In a pitch from last month, bullishbabo expands on why the stock is unsafe at its current speed. An excerpt follows, but be sure to check out the entire bear case:

[AutoZone] is currently overvalued. It was a great buy a year or two ago, but it's one of few stocks that has gone up since late 2007. Based on its 5 year and 10 year earnings, it's overvalued. Based on its negative book value, it's overvalued. ...

Look up the shares outstanding, and it's decreasing steadily. They take buying back shares rather seriously. So seriously, in fact, that they'd rather buy back their overvalued shares than pay down their debt. … They should be issuing stock right now, not buying it back. ...

AutoZone is a great recession stock earning decent money because people won't buy cars, but it's WAY too late to get in on this stock. I don't see how people still buy this thing. It's overvalued and management has been doing the wrong things for many years now. Their ballooning debt load will eventually catch up to them.

What do you think about AutoZone, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Amazon is a Motley Fool Stock Advisor pick, Google is a Rule Breakers recommendation, and Johnson & Johnson and Genuine Parts are choices of Income Investor. The Fool's disclosure policy always gets a perfect score.