O'Reilly Automotive (ORLY) - The growth story that never ends

- Historic growth:

- Since its IPO in 1993,$ORLY has increased sales 117 times.

- A $2,500 investment at IPO would be worth over $1 million today.

- Current Situation:

- After the stock's recent plunge, now is a good time to buy.

-$ORLY has 6,217 stores and is still expanding.

- Sales Segments:

- The even split of sales between DIY and professional mechanics allows for expansion into different markets.

- Constant opening of new stores since 2005.

- Rapid expansion in states such as New York and the Northeast, where there is still great potential for growth.

- International expansion into Canada and Mexico.

- Financial health:

- Increased gross margins due to reduced product and shipping costs.

- Reduce adjusted SG&A expenses by 5% in Q4 and 2% for full year 2024.

- Inventories decreased 19% to $958 million.

- Strong position:

- $859 million in cash, net of outstanding debt.

- New $500 million share repurchase program.

-$ORLY ranks fourth in the S&P 500 index by ROIC.

- Share repurchases:

- The company has repurchased 6% of its shares each year for the past ten years.

- A 44% reduction in the number of shares has led to a nearly six-fold increase in earnings per share (EPS).

- The stock is trading at 25 times earnings, comparable to the average of the S&P 500 index.

- The stock is 15% below its 2024 highs, making it an attractive investment.

🌟 O'Reilly Automotive represents an excellent opportunity for long-term investors due to its growth history, financial stability, and ambitious expansion plans! 🚗🔧