O'Reilly Automotive 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. The company was founded in 1957 and is based in Springfield, Missouri.
ORLY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for O Reilly Automotive Inc. To summarize, we found that O Reilly Automotive Inc ranked in the 47th percentile in terms of potential gain offered. As for the metrics that stood out in our discounted cash flow analysis of O Reilly Automotive Inc, consider:
ORLY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 27.21% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), O Reilly Automotive Inc has a reliance on debt greater than only 17.73% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of O Reilly Automotive Inc? See SGA, UFI, LCII, MYE, and UONE.
(Pexels) Of all the companies I've research, AutoZone (AZO) is among the most stable. The auto parts company has nearly constant margins, constant leverage, and almost always trades at the same valuation. This has made it very attractive to many investors, particularly with its slow but steady revenue growth over...
Harrison Schwartz on Seeking Alpha | September 18, 2020
The auto parts retailers have been hot for a long time. None have been hotter than O’Reilly (ORLY), which has proven time and again it is the best of the group that also includes Advance Auto Parts (AAP) and AutoZone (AZO), as well as conglomerate Genuine Parts (GPC). O’Reilly has...
O'Reilly Automotive broke out on the upside Thursday on the heels of their earnings beat. In this daily bar chart of ORLY, below, we can see that prices made a "V" bottom in late March followed by a very brief retest before prices raced higher. Prices rallied up into June and then traded sideways for a few weeks before their recent upside breakout to new highs.
At this time, I'd like to introduce Greg Johnson. Participating on the call with me this morning are Jeff Shaw, our Chief Operating Officer and Co-President and Tom McFall, our Chief Financial Officer.
O'Reilly Automotive (NASDAQ: ORLY) posted a 7.24% decrease in earnings from Q1. Sales, however, increased by 24.88% over the previous quarter to $3.09 billion. Despite the increase in sales this quarter, the decrease in earnings may suggest O'Reilly Automotive is not utilizing their capital as effectively as possible. O'Reilly Automotive earned $409.31 million and $2.48 billion in sales in Q1.What Is Return On Capital Employed? Changes in earnings and sales indicate shifts in O'Reilly Automotive's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed in a business. Generally, a higher ROCE suggests successful growth in a company and is a sign of higher earnings per share for shareholders in the future. In Q2, O'Reilly Automot...