ORLY (O'REILLY AUTOMOTIVE
PARTS)
- P/E: 16.3
- GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER:
- ASSETS-LIABILITIES: 2.06
- SECTOR: RETAIL TRADE
- DIVIDEND: none
ORLY is a chain of Auto
Parts stores. The company's share price plunged almost 19% 7/5/17,
after reporting a decline in its same-store sales numbers. A rapidly
expanding company, ORLY has a disproportionate amount of debt on its
balance sheet.
In the last quarter,
O'Reilly increased sales by almost 3%, while operating income
decreased by almost 4%. However, the company did post an increase in
EPS on a year-over-year basis by virtue of decreased taxation.
Autozone has only 1% of the amount of cash as it does long-term debt.
The company also reports that it has roughly twice as much assets as
it does liabilities, with the majority of these holdings in inventory
and property. Cash decreased from 4Q '16 to 1Q '17, coinciding with
the rise in inventory, and property.
O'Reilly trades at a 33%
premium to its closest competitor, AZO. Both companies have fallen
approximately 35% in share price since the beginning of the year.
AZO posts higher revenues, while both companies have increased
revenue over the past consecutive 4 years. ORLY's growth rate is
nearly twice AZO's. ORLY missed both the expectations of Wall Street
and itself in the last quarter.
Founded as a family business
in 1957, O'Reilly came public in 1993, and several members of the
O'Reilly family serve on the company board. The last major insider
purchase was made by Daniel O'Reilly, the chairman, in August of
2016. Gregory Henslee is the company's CEO. He joined the company
in 1984 as a store employee, and has been CEO since 2013. Henslee
has declared that the specialist advice offered in O'Reilly stores
trumps Amazon services, as people require assistance in selecting
automotive parts.
The company is estimated to
report in late July, and will look to reverse the trend of missing
expectations with its sales figures, and revenue growth. While the
company's sales have grown exponentially, so has its share price, and
the expectations of Wall Street. The price-to-earnings multiple is
still below the average S&P stock.
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