Morningstar Rating

Stock Research and Analysis

by Liang Feng

Bulls Say

Improved operational efficiency at former CSK stores should drive strong same-store sales and margin expansion.
O'Reilly's extensive experience in the commercial business positions the firm particularly well to benefit from strong commercial growth trends.
O'Reilly can more cheaply and effectively service commercial customers with its extensive distribution infrastructure. Read more 

Bears Say

Pent-up demand for newer vehicles could 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 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 may be cannibalized if scrappage rates accelerate. Read more 

Management

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 

Profile

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 

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