u/Ok-Line2658

AutoZone spent $18B at 14x EV/EBIT but grew revenue 8% annually, making its buyback program a success. The author’s screening suggests AZO is an exemplar of buybacks that work—sustained top-line growth validates the strategy and supports further capital returns. Long AZO as a quality compounder that uses buybacks effectively; the post reinforces its superior capital allocation track record. Cyclical auto parts demand slowdown, margin compression from inflation, or a shift in consumer behavior (e.g., more new car sales).

Intel spent $23B on buybacks at a ~10x EV/EBIT while revenue declined 20% over the period—a textbook value-destroying repurchase. The post implies that continued lack of revenue growth will persist, making future buybacks equally destructive and likely pressuring the stock. Short INTC as a bet that its buyback-driven capital allocation continues to erode intrinsic value, lagging the broader market. Cyclical recovery in semis, new product cycle (e.g., foundry success), or activist intervention could reverse revenue trends.