O`Reilly Automotive Inc
Exchange: NASDAQSector: Consumer CyclicalIndustry: Specialty Retail
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets.
Did you know?
Net income compounded at 10.5% annually over 6 years.
Current Price
$96.67
-2.75%GoodMoat Value
$92.26
4.6% overvaluedProfile
Valuation (TTM)
Market Cap$81.60B
P/E32.15
EV$83.17B
P/B—
Shares Out844.10M
P/Sales4.59
Revenue$17.78B
EV/EBITDA22.55
O`Reilly Automotive Inc (ORLY) Stock Analysis
GoodMoat Analysis
O'Reilly Automotive is a specialty auto parts retailer with a strong, asset-light business model, but its current valuation appears full. The company's scale and distribution network provide a competitive moat, yet its price offers a minimal margin of safety against our estimated intrinsic value.
Read full analysis
O'Reilly Automotive operates a leading chain of retail stores and distribution centers for automotive aftermarket parts, tools, and accessories. Applying the GoodMoat framework, the company demonstrates a solid, if not spectacular, competitive position. Its primary moat likely stems from scale privilege and niche dominance, as its vast network of stores and efficient distribution system creates significant logistical advantages and makes it a mission-critical supplier for professional installers. This is supported by a high operating margin of 19.5% and a healthy profit margin of 14.3%. However, with a Moat Score likely in the 5-6 range, it qualifies for further analysis but is not a top-tier moat candidate.
Proceeding to the Decision Framework, the valuation assessment is critical. The stock trades at a P/E of 30.3x, which is high for a company with 7.8% YoY revenue growth. The GoodMoat Target price is $92.26, just 1.2% above the current price of $91.16, indicating a marginal margin of safety that falls within the '10–20% = Marginal' band. This suggests the price is fair but offers little room for error. The low Free Cash Flow Yield of 2.1% further supports a view of full valuation. For a value investor, O'Reilly is a high-quality business with a durable model, but the current price does not present a compelling opportunity, placing it in the 'WITH CAUTION' category of the framework, warranting further investigation only if a more attractive entry point emerges.
Analysis based on data as of 2024-05-15.
Market Cap$81.60B
Current Price$96.67
P/E Ratio32.15
Forward P/E—
PEG Ratio2.57
EPS$2.97
Book Value$-0.90
P/B Ratio—
ORLY Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 6.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 8.3B
Revenue
10.1B
FY19
11.6B
FY20
13.3B
FY21
14.4B
FY22
15.8B
FY23
16.7B
FY24
17.8B
FY25
Net Income
1.4B
FY19
1.8B
FY20
2.2B
FY21
2.2B
FY22
2.3B
FY23
2.4B
FY24
2.5B
FY25
ORLY 52-Week Range
$87.30
$107.82
50-Day MA: $92.62200-Day MA: $97.26
Did you know?
ORLY's revenue grew at a 9.8% CAGR over the last 6 years.
O`Reilly Automotive Inc (ORLY) Financial Summary
O`Reilly Automotive Inc (ORLY) is a Consumer Cyclical company in the Specialty Retail industry, listed on NASDAQ. The stock currently trades at $96.67 with a market capitalization of $81.60B.
Key valuation metrics include a P/E ratio of 32.15, and EPS of $2.97. The company reports a profit margin of 14.3%.
ORLY Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $81.60B |
| P/E Ratio | 32.15 |
| EPS | $2.97 |
| P/S Ratio | 4.59 |
| EV/EBITDA | 22.55 |
| Profit Margin | 14.3% |
ORLY Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $10.15B | $1.39B |
| FY20 | $11.60B | $1.75B |
| FY21 | $13.33B | $2.16B |
| FY22 | $14.41B | $2.17B |
| FY23 | $15.81B | $2.35B |
| FY24 | $16.71B | $2.39B |
| FY25 | $17.78B | $2.54B |
O`Reilly Automotive Inc (ORLY) Valuation
Based on GoodMoat's DCF model, O`Reilly Automotive Inc has a fair value estimate of $92.26. At the current price of $96.67, the stock appears 4.8% overvalued relative to our intrinsic value estimate.
ORLY Quality Indicators
O`Reilly Automotive Inc maintains a profit margin of 14.3% and an operating margin of 19.5%. The current ratio is 0.77.
About O`Reilly Automotive Inc
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets.
ORLY Free Cash Flow
O`Reilly Automotive Inc generated $1.62B in trailing twelve-month free cash flow, representing an FCF yield of 1.99%. This low FCF yield may reflect heavy reinvestment or growth spending.
ORLY Shares Outstanding
O`Reilly Automotive Inc has 0.84 billion shares outstanding at a share price of $96.67, giving it a market capitalization of $81.60B.
ORLY Recent Insider Trades
Recent insider transactions at O`Reilly Automotive Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| SASTRE MARIA (Director) | SELL | 1,000 | $92681.00 |