Morningstar Rating
Stock XNAS Rating as of
$1,115.89 −13.33(1.18%)
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Company Report
Company Report
O'Reilly Looks Well-Positioned to Gain Market Share in Fragmented Aftermarket Auto Parts Industry
Noah Rohr
With over 6,000 stores across the United States, O’Reilly boasts a resounding presence in the highly fragmented automotive aftermarket. The retailer greatly expanded its footprint in the do-it-yourself subset of the aftermarket via its acquisition of CSK in 2008, and we estimate the firm currently holds a low-double-digit percentage share of the DIY market, second only to AutoZone. Despite facing copious competition from online channels and diversified retailers, O’Reilly’s value proposition is predicated in its knowledgeable staff and ample product availability. Contrary to most non-pure-play auto parts retailers, O’Reilly’s staff assists customers with vehicle diagnosis, the ordering of parts for a specific vehicle’s make and model, and testing the functionality of parts. Given auto repairs are often nondiscretionary and, in some instances, time sensitive, we surmise consumers value the level of expertise provided by O’Reilly’s staff. Furthermore, the firm’s hub-and-spoke supply chain model and favorable supplier relationships provide it with significant localized distribution capacity. As such, the firm is able to quickly distribute products across its local store base to meet time-sensitive consumer demand. We view the firm’s levels of customer service and convenience as difficult to replicate and valuable to customers, allowing O’Reilly to consistently deliver a gross margin in excess of 50%.
Price vs Fair Value
Price vs Fair Value
ORLY is trading at a 119% premium.
Price
$1,115.64
Fair Value
$562.00
Uncertainty
Medium
- 1-Star Price
- $7,894.00
- 5-Star Price
- $973.00
- Economic Moat
- Xfgq
- Capital Allocation
- Rtqplnwqs
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.
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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
- $1,129.22
- Day Range
$1,106.23–1,140.00
- 52-Week Range
$860.10–1,169.11
- Bid/Ask
- $1,001.00/$1,200.00
- Market Cap
- $64.73 Bil
- Volume/Avg
- 338,237/423,604
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 28.08
- Price/Sales
- 4.09
- Dividend Yield (Trailing)
- —
- Dividend Yield (Forward)
- —
- Total Yield
- 3.57%
Company Profile
Company Profile
O’Reilly is an aftermarket automotive parts retailer in the United States and Mexico with about $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 Growth
- 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) | 28.08 | 17.22 | 21.31 |
Price/Book Value | — | 1.45 | — |
Price/Sales | 4.09 | 0.33 | 3.19 |
Price/Cash Flow | 22.92 | 11.79 | 17.96 |
Price/Earnings
ORLY
AAP
AZO
Financial Strength
Financial Strength
| Metric | ORLY | AAP | AZO |
|---|---|---|---|
Quick Ratio | 0.09 | 0.24 | 0.09 |
Current Ratio | 0.70 | 1.22 | 0.79 |
Interest Coverage | 14.78 | 1.21 | 8.86 |
Quick Ratio
ORLY
AAP
AZO
Profitability
Profitability
| Metric | ORLY | AAP | AZO |
|---|---|---|---|
Return on Assets (Normalized) | 17.27% | — | 16.56% |
Return on Equity (Normalized) | — | — | — |
Return on Invested Capital (Normalized) | 43.33% | — | 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 | Tvkcwsdzm | Txwr | $54.1 Bil | |||
| Tractor Supply Co TSCO | Kmklhjyrd | Lkgyg | $28.4 Bil | |||
| Dick's Sporting Goods Inc DKS | Plbjlfwh | Dplm | $18.3 Bil | |||
| Williams-Sonoma Inc WSM | Sypzzspg | Knw | $18.1 Bil | |||
| Best Buy Co Inc BBY | Xzvgyyvx | Dlqhgr | $18.1 Bil | |||
| Ulta Beauty Inc ULTA | Htlcbwldz | Wlkhtc | $17.5 Bil | |||
| Casey's General Stores Inc CASY | Kznnfvrp | Cxrgj | $14.0 Bil | |||
| Murphy USA Inc MUSA | Kbjynqdw | Wnqgw | $10.3 Bil | |||
| BBWI | Wjjynnykv | Ccwjld | $7.3 Bil |
