O'Reilly Automotive (ORLY) - The growth story that never ends
- Historic growth:
- Since its IPO in 1993,$ORLY+0.1% 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+0.1% 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+0.1% 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! 🚗🔧
Very good and interesting company. Super discovery. The current hammered price could provide a super opportunity to get into the stock as well as for traders. Do you have this company in your portfolio? I'm going to look into it more :)