O’reilly Automotive Intrinsic Value Calculation – O’REILLY AUTOMOTIVE Reports Q2 2023 Financial Results
July 28, 2023
🌥️Earnings Overview
On July 26, 2023, O’REILLY AUTOMOTIVE ($NASDAQ:ORLY) revealed its financial results for the quarter ended June 30, 2023. Total revenue for Q2 FY2023 was reported as USD 4069.0 million, representing an increase of 10.8% from the same quarter of the prior year. Furthermore, net income for the period increased by 8.8% year-on-year to USD 627.4 million.
Share Price
On Wednesday, O’REILLY AUTOMOTIVE, one of the leading automotive parts retailers in the U.S., reported its second quarter financial results. The company’s stock opened at $963.1 and closed at $965.6, showing a slight uptick of 0.1% from its previous closing price of $964.3. O’REILLY AUTOMOTIVE attributed much of the improvement in net income to increased sales, lower operating expenses, and favorable foreign currency impacts.
Overall, the financial results reported by O’REILLY AUTOMOTIVE indicate a strong and prosperous outlook for the company. The company’s stock had closed slightly higher on Wednesday, reflecting investors’ confidence in the company’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for O’reilly Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 15.22k | 2.26k | 14.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for O’reilly Automotive. More…
| Operations | Investing | Financing |
| 3.41k | -975.13 | -2.63k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for O’reilly Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.28k | 14.9k | -26.94 |
Key Ratios Snapshot
Some of the financial key ratios for O’reilly Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | 12.7% | 20.2% |
| FCF Margin | ROE | ROA |
| 17.2% | -118.2% | 14.5% |
Analysis – O’reilly Automotive Intrinsic Value Calculation
At GoodWhale, we believe in using fundamental analysis to evaluate stocks. That’s why we’ve looked into O’REILLY AUTOMOTIVE‘s numbers and come up with an intrinsic value for their shares. Our proprietary Valuation Line suggests that the intrinsic value of O’REILLY AUTOMOTIVE share is around $787.2. However, at the time of writing, the stock is being traded at $965.6, indicating an overvaluation of 22.7%. This means that the company may be a risky investment at this time, as the share price may not be backed up by its fundamentals. More…
Peers
O’Reilly Automotive Inc is an American automotive parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Headquartered in Springfield, Missouri, it has over 5,000 stores in 47 states. O’Reilly Automotive Inc operates under the O’Reilly Auto Parts, Chattersnap Auto Parts, and CSK Auto Inc names.
Its main competitors are AutoZone Inc, Five Below Inc, Advance Auto Parts Inc.
– AutoZone Inc ($NYSE:AZO)
AutoZone Inc is an American retailer of automotive parts and accessories, with over 6,000 stores across the United States. The company has a market cap of $43.79B as of 2022 and a Return on Equity of -61.62%. AutoZone is the largest retailer of automotive parts and accessories in the United States, with over 6,000 stores across the country. The company offers a wide variety of products and services for both do-it-yourselfers and professional mechanics. AutoZone is a publicly traded company on the New York Stock Exchange under the ticker symbol AZO.
– Five Below Inc ($NASDAQ:FIVE)
Five Below Inc is a publicly traded company with a market cap of 7.51B as of 2022. The company has a Return on Equity of 18.02%. Five Below Inc is a specialty retailer that offers a variety of products, including cosmetics, apparel, accessories, and more, all priced at $5 or less. The company has over 700 stores across the United States and plans to continue expanding its brick-and-mortar footprint. Five Below Inc is headquartered in Philadelphia, Pennsylvania.
– Advance Auto Parts Inc ($NYSE:AAP)
Advance Auto Parts is a leading retailer of automotive parts, accessories and maintenance items in the United States. The company operates over 5,000 stores and serves both professional and do-it-yourself customers. Advance Auto Parts has a market cap of 10.3B as of 2022 and a Return on Equity of 16.16%. The company’s strong financial performance and solid market position make it a compelling investment option for investors looking for exposure to the automotive sector.
Summary
O’REILLY AUTOMOTIVE delivered positive financial results for the quarter ending June 30, 2023, with total revenue increasing by 10.8% and net income by 8.8% year-over-year. This performance bodes well for investors, as it suggests that O’REILLY AUTOMOTIVE is in a strong financial position and is well-positioned for future growth. Investors may want to consider investing in the company given its positive financial outlook, as well as its record of delivering consistent returns over the past quarter.
