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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.1%

ORLY

3.9%

US Specialty Retail

1.8%

US Market


1 Year Return

20.3%

ORLY

7.1%

US Specialty Retail

7.3%

US Market

Return vs Industry: ORLY exceeded the US Specialty Retail industry which returned 7.1% over the past year.

Return vs Market: ORLY exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

ORLYIndustryMarket
7 Day2.1%3.9%1.8%
30 Day4.0%3.0%-0.7%
90 Day2.6%4.7%0.06%
1 Year20.3%20.3%8.9%7.1%9.7%7.3%
3 Year48.7%48.7%43.0%35.7%46.3%36.9%
5 Year143.2%143.2%57.7%43.8%64.5%46.5%

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?

24.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ORLY ($407.17) is trading above our estimate of fair value ($263.18)

Significantly Undervalued: 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 (24x) compared to the Specialty Retail industry average (15.2x).

PE vs Market: ORLY is poor value based on its PE Ratio (24x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ORLY is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: ORLY is overvalued based on its PB Ratio (215.8x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

How is O'Reilly Automotive forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORLY's forecast earnings growth (6% per year) is above the savings rate (2.7%).

Earnings vs Market: ORLY's earnings (6% per year) are forecast to grow slower than the US market (14.6% 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 (7.3% 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

High Future ROE: ORLY's Return on Equity is forecast to be very high in 3 years time (867.5%).


Next Steps

Past Performance

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

12.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORLY's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: ORLY's earnings growth over the past year (7.8%) is below its 5-year average (12.3% per year).

Earnings vs Industry: ORLY earnings growth over the past year (7.8%) underperformed the Specialty Retail industry 8.3%.


Return on Equity

High ROE: Whilst ORLY's Return on Equity (927.1%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ORLY has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: ORLY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is O'Reilly Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: ORLY's short term assets ($3.7B) do not cover its short term liabilities ($4.4B)

Long Term Liabilities: ORLY's short term assets (3.7B) do not cover its long term liabilities (5.7B)


Debt to Equity History and Analysis

Debt Level: ORLY's debt to equity ratio (2615.2%) is considered high

Reducing Debt: ORLY's debt to equity ratio has increased from 66% to 2615.2% over the past 5 years.

Debt Coverage: ORLY's debt is well covered by operating cash flow (44.9%).

Interest Coverage: ORLY's interest payments on its debt are well covered by EBIT (14.4x 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%1.5%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of O'Reilly Automotive's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Greg Johnson (53yo)

1.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: ORLY's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

14.7yrs

Average Tenure

69yo

Average Age

Experienced Board: ORLY's board of directors are seasoned and experienced ( 14.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$381,07920 Aug 19
Jay Burchfield
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$381.08
BuyUS$55,25005 Aug 19
Jeffrey Lauro
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Information Technology
Shares150
Max PriceUS$372.50
BuyUS$19,00001 Aug 19
Jeffrey Lauro
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Information Technology
Shares50
Max PriceUS$380.00
SellUS$47,08201 Aug 19
John Murphy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares122
Max PriceUS$385.92
SellUS$190,63423 May 19
John Murphy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares528
Max PriceUS$361.05
SellUS$12,766,32022 Mar 19
David O'Reilly
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares34,000
Max PriceUS$375.48
SellUS$2,102,68822 Mar 19
Lawrence O'Reilly
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,600
Max PriceUS$375.48
SellUS$1,703,68428 Feb 19
Lawrence O'Reilly
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares4,500
Max PriceUS$378.85
SellUS$3,873,50019 Feb 19
Rosalie O'Reilly-Wooten
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$387.35
SellUS$14,884,90814 Feb 19
David O'Reilly
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceUS$372.12
SellUS$563,88014 Feb 19
Jay Burchfield
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$375.92

Ownership Breakdown


Management Team

  • David O'Reilly (69yo)

    Executive Chairman

    • Tenure: 14.7yrs
    • Compensation: US$1.09m
  • Greg Henslee (58yo)

    Executive Vice Chairman

    • Tenure: 1.4yrs
    • Compensation: US$1.13m
  • Larry Ellis (64yo)

    Senior Vice President of Distribution Operations

    • Tenure: 4.8yrs
  • Jeff Shaw (57yo)

    Co-President & COO

    • Tenure: 2.7yrs
    • Compensation: US$3.38m
  • Tom McFall (49yo)

    Executive VP & CFO

    • Tenure: 12.8yrs
    • Compensation: US$2.45m
  • Greg Johnson (53yo)

    Co-President & CEO

    • Tenure: 1.4yrs
    • Compensation: US$4.87m
  • Jeff Groves (53yo)

    Senior VP of Legal & General Counsel

    • Tenure: 3.8yrs
  • Brad Beckham (40yo)

    Executive Vice President of Store Operations & Sales

    • Tenure: 1.8yrs
  • Jeff Lauro (53yo)

    Senior Vice President of Information Technology

    • Tenure: 4.3yrs
  • Jonathan Andrews (51yo)

    Senior Vice President of Human Resources & Training

    • Tenure: 0.8yrs

Board Members

  • Tom Hendrickson (64yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$229.09k
  • David O'Reilly (69yo)

    Executive Chairman

    • Tenure: 14.7yrs
    • Compensation: US$1.09m
  • Larry O'Reilly (72yo)

    Vice Chairman

    • Tenure: 14.7yrs
    • Compensation: US$236.01k
  • Greg Henslee (58yo)

    Executive Vice Chairman

    • Tenure: 1.4yrs
    • Compensation: US$1.13m
  • Rosalie O'Reilly-Wooten (77yo)

    Director

    • Tenure: 39.8yrs
    • Compensation: US$226.92k
  • Jay Burchfield (73yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$230.97k
  • Andrea Weiss (63yo)

    Independent Director

    • Tenure: 0.4yrs
  • Dana Perlman (39yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$221.59k
  • John Murphy (69yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$228.72k

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$31.154b
  • Shares outstanding: 76.51m
  • 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
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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:40
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.