NasdaqGS:ORLY

Stock Analysis Report

Executive Summary

O'Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.

Rewards

Earnings are forecast to grow 4.84% per year

Earnings have grown 11.3% per year over the past 5 years

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months



Snowflake Analysis

Limited growth with questionable track record.


Similar Companies

Share Price & News

How has O'Reilly Automotive's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ORLY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

ORLY

0.7%

US Specialty Retail

0.5%

US Market


1 Year Return

3.1%

ORLY

18.0%

US Specialty Retail

20.3%

US Market

Return vs Industry: ORLY underperformed the US Specialty Retail industry which returned 18% over the past year.

Return vs Market: ORLY underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

ORLYIndustryMarket
7 Day-0.1%0.7%0.5%
30 Day-11.0%1.3%2.0%
90 Day-10.5%5.6%9.4%
1 Year3.1%3.1%19.8%18.0%22.8%20.3%
3 Year47.5%47.5%46.7%39.7%50.1%40.4%
5 Year87.3%87.3%50.8%38.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is O'Reilly Automotive's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is O'Reilly Automotive undervalued compared to its fair value and its price relative to the market?

21.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORLY ($392.15) is trading above our estimate of fair value ($333.94)

Significantly Below Fair Value: ORLY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ORLY is poor value based on its PE Ratio (21.7x) compared to the Specialty Retail industry average (16.7x).

PE vs Market: ORLY is poor value based on its PE Ratio (21.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ORLY is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ORLY is overvalued based on its PB Ratio (74.6x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is O'Reilly Automotive forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORLY's forecast earnings growth (4.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ORLY's earnings (4.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ORLY's earnings are forecast to grow, but not significantly.

Revenue vs Market: ORLY's revenue (5.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ORLY's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORLY's Return on Equity is forecast to be very high in 3 years time (575.1%).


Next Steps

Past Performance

How has O'Reilly Automotive performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORLY has high quality earnings.

Growing Profit Margin: ORLY's current net profit margins (13.7%) are lower than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: ORLY's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: ORLY's earnings growth over the past year (5%) is below its 5-year average (11.3% per year).

Earnings vs Industry: ORLY earnings growth over the past year (5%) underperformed the Specialty Retail industry 6.4%.


Return on Equity

High ROE: Whilst ORLY's Return on Equity (350.09%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is O'Reilly Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: ORLY's short term assets ($3.8B) do not cover its short term liabilities ($4.5B).

Long Term Liabilities: ORLY's short term assets ($3.8B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: ORLY's debt to equity ratio (979.1%) is considered high.

Reducing Debt: ORLY's debt to equity ratio has increased from 68.7% to 979.1% over the past 5 years.

Debt Coverage: ORLY's debt is well covered by operating cash flow (43.9%).

Interest Coverage: ORLY's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

Inventory Level: ORLY has a high level of physical assets or inventory.

Debt Coverage by Assets: ORLY's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is O'Reilly Automotive's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ORLY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ORLY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ORLY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ORLY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ORLY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Greg Johnson (53yo)

1.8yrs

Tenure

US$4,866,262

Compensation

Mr. Gregory D. Johnson, also known as Greg, has been Co-President at O'Reilly Automotive Inc., since February 7, 2017 and its Chief Executive Officer since May 8, 2018. Mr. Johnson has been Executive Vice  ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD4.87M) is below average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David O'Reilly
Executive Chairman15yrsUS$1.09m0.81% $238.8m
Gregory Johnson
Co-President & CEO1.8yrsUS$4.87m0.0070% $2.1m
Gregory Henslee
Executive Vice Chairman1.8yrsUS$1.13m0.050% $14.8m
Jeff Shaw
Co-President & COO3yrsUS$3.38m0.039% $11.4m
Thomas McFall
Executive VP & CFO13.1yrsUS$2.45m0.0080% $2.4m
Jeffrey Groves
Senior VP of Legal & General Counsel4.1yrsno data0.00097% $286.9k
Brad Beckham
Executive Vice President of Store Operations & Sales2.1yrsno data0.0021% $612.2k
Jonathan Andrews
Senior Vice President of Human Resources & Training1.1yrsno data0.00076% $224.8k
Larry Ellis
Senior Vice President of Distribution Operations5.2yrsno data0.0055% $1.6m
Jeffrey Lauro
Senior Vice President of Information Technology4.7yrsno data0.0014% $428.8k

3.5yrs

Average Tenure

53yo

Average Age

Experienced Management: ORLY's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David O'Reilly
Executive Chairman15yrsUS$1.09m0.81% $238.8m
Gregory Henslee
Executive Vice Chairman1.8yrsUS$1.13m0.050% $14.8m
Thomas Hendrickson
Independent Director10.1yrsUS$229.09k0.0032% $952.3k
Lawrence O'Reilly
Vice Chairman15yrsUS$236.01k0.23% $66.6m
Rosalie O'Reilly-Wooten
Director40.1yrsUS$226.92k0.29% $85.2m
Jay Burchfield
Independent Director23.1yrsUS$230.97k0.022% $6.7m
Andrea Weiss
Independent Director0.8yrsno data0.00051% $150.8k
Dana Perlman
Independent Director2.3yrsUS$221.59k0.0016% $473.2k
John Murphy
Independent Director17.1yrsUS$228.72k0.0030% $881.3k

15.0yrs

Average Tenure

69yo

Average Age

Experienced Board: ORLY's board of directors are seasoned and experienced ( 15 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ORLY insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

O'Reilly Automotive, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: O'Reilly Automotive, Inc.
  • Ticker: ORLY
  • Exchange: NasdaqGS
  • Founded: 1957
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$29.575b
  • Shares outstanding: 75.42m
  • Website: https://www.oreillyauto.com

Number of Employees


Location

  • O'Reilly Automotive, Inc.
  • 233 South Patterson Avenue
  • Springfield
  • Missouri
  • 65802
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORLYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1993
OM6DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1993
ORLY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1993
ORLYWBAG (Wiener Boerse AG)YesCommon StockATEURApr 1993
0KABLSE (London Stock Exchange)YesCommon StockGBUSDApr 1993
OM6ETLX (Eurotlx)YesCommon StockITEURApr 1993
ORLY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.2 COM USD0.01BRBRLMay 2019

Biography

O'Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, and temperature control and water pumps; maintenance items comprising antifreeze and lighting products, appearance products, engine additives, filters, fluids, and oil and wiper blades; and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company’s stores also offer enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; professional paint shop mixing and related materials; and machine shops. Its stores provide do-it-yourself and professional service provider customers a selection of brand name, house brands, and private label products for domestic and imported automobiles, vans, and trucks. As of December 31, 2018, the company operated 5,219 stores. O'Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:14
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.