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 $1,036.09, O'Reilly Automotive Inc has witnessed a daily gain of 0.78%, marked against a three-month change of 14.48%. 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: 5/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in profitability, growth, and momentum, and moderate ranks in financial strength and GF Value, GuruFocus assigned O'Reilly Automotive Inc the GF Score of 95 out of 100, which signals the highest outperformance potential.
Understanding O'Reilly Automotive Inc's Business
O'Reilly Automotive Inc is a leading player in the aftermarket automotive parts industry, boasting a market cap of $61.30 billion and sales of $15.62 billion. With an operating margin of 20.16%, the company demonstrates strong profitability. O'Reilly Automotive serves both professional and DIY customers, with a nearly even split in sales between these two segments. The company's product mix includes branded and own-label products, the latter making up about half of its sales. As of the end of 2022, O'Reilly Automotive operated 5,971 stores across 47 U.S. states and 42 stores in Mexico. The firm's expansive reach is further bolstered by approximately 725 sales personnel dedicated to commercial buyers.
Profitability Rank Breakdown
The Profitability Rank of O'Reilly Automotive Inc reflects its exceptional ability to generate profits compared to its peers. This is further reinforced by the company's Predictability Rank of 5.0 stars out of five, highlighting its consistent operational performance and providing investors with a high level of confidence in its financial stability.
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 19.3% outperforms 81.6% of companies in the Retail - Cyclical industry. Additionally, O'Reilly Automotive Inc has experienced a significant increase in its EBITDA over the past few years, with a three-year growth rate of 21.7 and a five-year rate of 19.9. This consistent growth trajectory highlights the company's ability to drive profitability and expand its market presence.
Conclusion: O'Reilly Automotive Inc's Position for Outperformance
Considering O'Reilly Automotive Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic focus on expanding its product offerings and store footprint, combined with its ability to consistently generate profits, positions it favorably for future growth. Investors looking for companies with similar potential can explore more options using the GF Score Screen provided by GuruFocus Premium membership.
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.
