Improved operational efficiency at former CSK stores will likely drive strong same-store sales and margin expansion.
O'Reilly's considerable experience in the commercial business positions the firm particularly well to benefit from strong commercial growth trends.
O'Reilly can service commercial customers more cheaply and effectively with its extensive distribution infrastructure. Read more
Pent-up demand for newer vehicles might result in elevated new-car sales over the next few years, which would raise vehicle scrappage rates and decrease demand for aftermarket auto parts.
O'Reilly's distribution network advantage will likely narrow over time, as rival retailers build out their own networks.
Revenue and profit gains have recently been driven by hard-part sales, which are infrequent purchases that could be cannibalized if scrappage rates accelerate. Read more
We assign O'Reilly an Exemplary stewardship rating. Through a series of well-executed acquisitions, management has transformed the company from a regional entity into a top-three national player. We believe management has proved itself to be highly Read more
With more than 4,000 stores, O'Reilly is the second-largest auto-parts retailer in the United States. After acquiring more than 1,300 CSK Auto stores in 2008, O'Reilly gained Read more