Entering text into the input field will update the search result below

O'Reilly Automotive: Valuation Seems Too High To Enter Now

Heinsite Capital profile picture
Heinsite Capital


  • ORLY is well-positioned to benefit from the increasing number of miles traveled, inflation-driven pricing increases, and increased demand for used car parts.
  • 1Q23 results showed strong sales growth, particularly within the DIFM segment, and the company's execution and distribution capabilities continue to position it well in the market.
  • ORLY's current valuation at 24x forward earnings which is trading 1 stdev above its historical average is difficult to justify.

Automotive parts isolated on white background 3D

Grassetto/iStock via Getty Images


O'Reilly Automotive (NASDAQ:ORLY) retails and supplies automotive aftermarket parts, and related tools to a range of customers from do-it-yourself [DIY] to professional mechanics and technicians. I have a positive view on the business as I see ORLY

This article was written by

Heinsite Capital profile picture
I am an investment analyst in a small boutique firm, covering companies across APAC and US.With over 5 years of dissecting businesses and what makes them tick, I look for opportunities in the markets and am not confined to a particular strategy. I look for strong companies with superior moats, but also believe strongly in managing risks to survive to fight another day.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (3)

Well…there’s 60 million shares outstanding. The O’Reilly brothers have indeed done a remarkable job in reducing that share count !
In another couple of years…they’ll easily be able to take the company private. Then presumably sell it to private equity for 100 billion dollars!
Choosh profile picture
@jjpcapitalmanagement Just looked the founders up - a great classical American story. Father getting forced into retirement at 72 starts very small company with his son in 1957. Love it.
Choosh profile picture
Couldn't agree more and have been selling and rolling calls for 2 years. Heard the one about the market remaining irrational longer than one can remain liquid?
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About ORLY

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ORLY

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.