O’reilly Automotive Intrinsic Value Calculation – O’Reilly Automotive Enjoys Success Through Buybacks and Market Share Growth
December 16, 2023
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O’REILLY ($NASDAQ:ORLY): O’Reilly Automotive is a leading automotive parts and accessories retailer in the United States. The company has enjoyed immense success over the years, thanks in large part to its strategic focus on stock buybacks and market share growth. This has enabled it to return money to its shareholders while also increasing earnings per share.
In addition, it has used the excess cash from the buybacks to invest in higher quality product lines, expand its store base, and offer competitive prices. This has resulted in a steady rise in the company’s market share over the past few years. Another key factor in O’Reilly Automotive’s success has been its ability to leverage its strong customer base. The company has made a strategic effort to focus on customer loyalty, offering a wide variety of promotions, coupons, and loyalty programs to its customers. This has enabled it to build a strong base of repeat customers and increase customer satisfaction. By combining stock buybacks with market share growth, O’Reilly Automotive has been able to establish itself as one of the most successful automotive parts retailers in the United States. Its strategy of leveraging customer loyalty and offering competitive prices has allowed it to enjoy tremendous success over the past decade.
Share Price
On Thursday, O’REILLY AUTOMOTIVE experienced success in the stock market as its share price opened at $983.7 and closed at $951.1, a 3.3% drop from the previous closing price of $983.4. This success can be attributed to the company’s substantial stock buybacks and market share growth. This steady increase in market share has also helped to drive the company’s stock price higher. 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 |
| 15.62k | 2.32k | 14.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for O’reilly Automotive. More…
| Operations | Investing | Financing |
| 3.31k | -1.11k | -2.19k |
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 |
| 13.55k | 15.31k | -29.53 |
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 |
| 11.5% | 10.6% | 20.3% |
| FCF Margin | ROE | ROA |
| 15.3% | -116.9% | 14.6% |
Analysis – O’reilly Automotive Intrinsic Value Calculation
GoodWhale has conducted an analysis of the wellbeing of O’REILLY AUTOMOTIVE. After careful evaluation, we have concluded that the fair value of O’REILLY AUTOMOTIVE share is around $867.8. This calculation was made using our proprietary Valuation Line. More…
Peers
O’Reilly Automotive Inc is an American automotive parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Headquartered in Springfield, Missouri, it has over 5,000 stores in 47 states. O’Reilly Automotive Inc operates under the O’Reilly Auto Parts, Chattersnap Auto Parts, and CSK Auto Inc names.
Its main competitors are AutoZone Inc, Five Below Inc, Advance Auto Parts Inc.
– AutoZone Inc ($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 Inc. is a leading American automotive parts retailer. Recently, the company has been implementing a buyback program combined with a strategy of increased market share growth. This strategy has resulted in the company’s stock price moving down the same day. Despite the immediate stock movements, analysts have been optimistic about the long-term potential of this strategy, noting that it could help increase the company’s profits and reduce its share count.
Additionally, the company’s strong market position and diverse product offerings are seen as beneficial for investors. Ultimately, whether this strategy will pay off in the long run remains to be seen, but it could be a positive move for O’Reilly Automotive in the future.
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