O'Reilly Automotive Inc (ORLY, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $1,115.16, O'Reilly Automotive Inc has witnessed a daily loss of 0.16%, marked against a three-month change of 17.21%. A thorough analysis, underlined by the GF Score, suggests that O'Reilly Automotive Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Considering the individual ranks, O'Reilly Automotive Inc's profitability and growth are particularly impressive, while its GF Value rank is modest. GuruFocus assigned O'Reilly Automotive Inc a GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding O'Reilly Automotive Inc's Business
O'Reilly Automotive Inc is a leading aftermarket automotive parts retailer in the United States and Mexico, boasting a market cap of $65.84 billion and annual sales of $15.81 billion. With an operating margin of 20.15%, the company operates over 6,000 domestic stores and caters to both do-it-yourself (about 55% of sales) and professional (45% of sales) end markets. Despite the highly fragmented industry, O'Reilly Automotive Inc distinguishes itself by offering quality service throughout the vehicle diagnosis and purchasing process. Its hub-and-spoke distribution network is designed to provide localized stores with a wide range of aftermarket products for various vehicle makes and models.
Profitability Rank Breakdown
The Profitability Rank reflects O'Reilly Automotive Inc's superior ability to generate profits compared to its peers. The company's Operating Margin has seen a steady increase over the past five years, with figures such as 18.92% in 2019 and 20.15% in 2023. This trend demonstrates the company's efficiency in managing its operations and maintaining profitability.
The Piotroski F-Score further confirms O'Reilly Automotive Inc's solid financial situation, while the Predictability Rank of 5.0 stars out of five highlights its consistent operational performance, instilling investor confidence.
Growth Rank Breakdown
O'Reilly Automotive Inc's high Growth Rank underscores its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 18.5% surpasses 79.65% of companies in the Retail - Cyclical industry. Additionally, O'Reilly Automotive Inc has experienced a significant increase in EBITDA over the past few years, with a three-year growth rate of 17.2 and a five-year rate of 19.7, indicating the company's sustained growth capabilities.
Next Steps
Considering O'Reilly Automotive Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. With its proven track record and strategic market positioning, O'Reilly Automotive Inc stands as a compelling investment for those seeking growth and stability in the dynamic automotive aftermarket industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
