Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+ . The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- O'REILLY AUTOMOTIVE INC has improved earnings per share by 19.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, O'REILLY AUTOMOTIVE INC increased its bottom line by earning $3.72 versus $2.97 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $3.72).
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market, O'REILLY AUTOMOTIVE INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for O'REILLY AUTOMOTIVE INC is rather high; currently it is at 52.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.30% is above that of the industry average.
- Net operating cash flow has slightly increased to $276.93 million or 3.58% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.89%.
O'Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company has a P/E ratio of 19.2, below the average retail industry P/E ratio of 19.4 and above the S&P 500 P/E ratio of 17.7. O'Reilly Automotive has a market cap of $10 billion and is part of the
industry. Shares are up 5.2% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
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