Morningstar Rating
Stock XNAS Rating as of
$1,118.19 +7.88(0.71%)
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Company Report
Company Report
O’Reilly Earnings: Top-Line Growth Slows but Professional Market Share Gains Look Persistent
Noah Rohr
Wide-moat O'Reilly's second-quarter results lagged our estimates, as comparable store sales growth of 2.3% landed below our forecast for a 4% gain, and operating margin of 20.2% represented an 80-basis-point decline. In light of a softer demand environment, management trimmed its top-line guidance for the full year to 2%-4% comp growth (from 3%-5% previously), but its operating margin target of about 20% remained largely intact. Despite underperforming expectations, the stock popped by a mid-single-digit percentage. We share in the market's positive sentiment because weak demand for aftermarket auto parts appears pervasive across the fragmented industry, and we think O'Reilly continues to gain market share, which should prove favorable longer term. For instance, O'Reilly's low-single-digit comp growth again outpaced its close competitor, narrow-moat Genuine Parts (owner of the NAPA brand), which reported a 1.5% decline in domestic automotive comp sales. We plan to raise our $810 fair value estimate by a low- to mid-single-digit percentage due to the time value of money and a slight upward adjustment to our long-term comp growth forecast.
Price vs Fair Value
See AlsoInvesteren in O`Reilly Automotive aandelen in 2024?O'Reilly Automotive, Inc. (ORLY) Stock Price, News, Quote & History - Yahoo FinanceO'Reilly Automotive, Inc. (ORLY) Interactive Stock Chart - Yahoo FinanceAandeel O Reilly Automotive ᐅ Laatste nieuws, koers & grafieken | Analyses & prognoses
Price vs Fair Value
ORLY is trading at a 478% premium.
Price
$1,118.19
Fair Value
$994.00
Uncertainty
Medium
- 1-Star Price
- $7,325.40
- 5-Star Price
- $716.00
- Economic Moat
- Hwkjt
- Capital Allocation
- Syfgwqvh
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
O’Reilly’s distribution network and supplier relationships are difficult to replicate and give the firm a durable edge as it pertains to product availability.
Bears
Competing online channels often have less expense overhead than pure-play auto parts retailers and thus may be able to price items below O’Reilly.
Is it the right time to buy, sell, or hold?
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News
News
- O’Reilly Automotive, Inc. Reports Second Quarter 2024 Results
- O’Reilly Automotive, Inc. Announces Dates for Its Second Quarter 2024 Earnings Release and Conference Call
- Mario Gabelli reveals his market-beating secrets and offers some favorite stock picks
Trading Information
Trading Information
- Previous Close Price
- $1,110.31
- Day Range
$1,104.91–1,121.54
- 52-Week Range
$860.10–1,169.11
- Bid/Ask
- $930.00/$1,199.98
- Market Cap
- $64.90 Bil
- Volume/Avg
- 325,870/430,911
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 28.38
- Price/Sales
- 4.10
- Dividend Yield (Trailing)
- —
- Dividend Yield (Forward)
- —
- Total Yield
- 3.55%
Company Profile
Company Profile
O’Reilly is an aftermarket automotive parts retailer in the United States and Mexico with nearly $16 billion in annual sales. The company operates over 6,000 domestic stores and serves both the do-it-yourself (about 55% of sales) and professional (45% of sales) end markets. Despite operating amid a highly fragmented industry, O’Reilly differentiates itself by providing quality service to its customers throughout the entirety of the vehicle diagnosis and purchasing process. Furthermore, the firm boasts an impressive hub-and-spoke distribution network designed to provide its localized store base with ample aftermarket product availability across a variety of vehicle makes and models.
- Sector
- Consumer Cyclical
- Industry
- Specialty Retail
- Stock Style Box
- Large Core
- Total Number of Employees
- 90,302
- Website
- https://www.oreillyauto.com
Competitors
Competitors
- Advance Auto Parts Inc AAP
- AutoZone Inc AZO
- Genuine Parts Co GPC
Valuation
Valuation
| Metric | ORLY | AAP | AZO |
|---|---|---|---|
Price/Earnings (Normalized) | 28.38 | 16.83 | 20.66 |
Price/Book Value | — | 1.42 | — |
Price/Sales | 4.10 | 0.32 | 3.09 |
Price/Cash Flow | 22.97 | 11.52 | 17.41 |
Price/Earnings
ORLY
AAP
AZO
Financial Strength
Financial Strength
| Metric | ORLY | AAP | AZO |
|---|---|---|---|
Quick Ratio | 0.08 | 0.24 | 0.09 |
Current Ratio | 0.71 | 1.22 | 0.79 |
Interest Coverage | 15.11 | 1.21 | 8.86 |
Quick Ratio
ORLY
AAP
AZO
Profitability
Profitability
| Metric | ORLY | AAP | AZO |
|---|---|---|---|
Return on Assets (Normalized) | 17.66% | — | 16.56% |
Return on Equity (Normalized) | — | — | — |
Return on Invested Capital (Normalized) | 44.24% | — | 44.88% |
Return on Assets
ORLY
AAP
AZO
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Specialty Retail Industry Comparables
Specialty Retail Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| AutoZone Inc AZO | Tctbmdhxp | Zmnn | $52.5 Bil | |||
| Tractor Supply Co TSCO | Ptbywlgf | Flsm | $28.6 Bil | |||
| Williams-Sonoma Inc WSM | Vngtwrmhm | Nhqz | $19.8 Bil | |||
| Best Buy Co Inc BBY | Cbzgdskp | Nbwvs | $18.4 Bil | |||
| Ulta Beauty Inc ULTA | Xdcqzxrly | Sqxbl | $17.5 Bil | |||
| Dick's Sporting Goods Inc DKS | Cqwrgpwjb | Rnjw | $16.9 Bil | |||
| Casey's General Stores Inc CASY | Wbdwwngp | Rtjtgp | $14.4 Bil | |||
| Murphy USA Inc MUSA | Grmlnpxp | Dmvwj | $10.4 Bil | |||
| BBWI | Bhbdvlj | Zljylyy | $7.8 Bil |
