O'Reilly Automotive (ORLY)
Consumer · NASDAQ · US
Fundamentals
Valuation and ratings
O'Reilly Automotive trades at $86.25, which is 16% below the $100.24 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 55 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 28.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About O'Reilly Automotive
O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, Mexico, and Canada. The company offers new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also provides auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company offers enhanced services and programs consisting of used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; referrals to trusted local repair shops; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. It offers its products to do-it-yourself and professional service providers for domestic and imported automobiles, vans, and trucks. It offers its products under the BesTest, BrakeBest, Cartek, Import Direct, MasterPro, MicroGard, Murray, Omnispark, O'Reilly Auto Parts, Precision, PowerTorque, SuperStart, Syntec, and Ultima brand names. O'Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.
ORLY passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
18 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$712.78M · 0.4% of book
- Ken Griffin, CITADEL ADVISORS LLC$447.82M · 0.1% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$410.29M · 0.3% of book
- Chuck Akre, AKRE CAPITAL MANAGEMENT LLC$358.70M · 5.8% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$263.19M · 0.2% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is O'Reilly Automotive (ORLY) undervalued?
Against our discounted cash flow estimate of $100.24, ORLY at $86.25 is 16% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ORLY?
18 of the institutions we track reported a position in ORLY in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ORLY's P/E ratio?
ORLY trades at 28.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ORLY, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.