Business Analysis of O'Reilly Automotive

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of O'Reilly Automotive

O'REILLY AUTOMOTIVE

Business Overview

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 provides new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis parts, driveline parts, and engine parts; maintenance items comprising oil, antifreeze products, fluids, filters, wiper blades, lighting products, engine additives, and appearance products; and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also offer enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; professional paint shop mixing and related materials; and machine shops. Its stores provide do-it-yourself and professional service provider customers a selection of brand name, house brands, and private label products for domestic and imported automobiles, vans, and trucks. As of December 31, 2016, the company operated 4,829 stores in 47 states. O'Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.

O'Reilly Automotive

O'Reilly Automotive


R&P Rank: 329
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Missouri
Website: www.oreillyauto.com
Company Address:
233 S PATTERSON AVE, SPRINGFIELD MO 65802
Ph:417-829-5878

Business Analysis of O'Reilly Automotive

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how O'Reilly Automotive compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by O'Reilly Automotive to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of O'Reilly Automotive with an interactive chart.

  1. Revenue Growth: O'Reilly Automotive reported a revenue growth of 7.9% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, O'Reilly Automotive spent 47.5% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: O'Reilly Automotive R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, O'Reilly Automotive spent 32.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, O'Reilly Automotive spent 32.3% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, O'Reilly Automotive invested 34.2% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, O'Reilly Automotive invested 3.3% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, O'Reilly Automotive invested 36.3% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: As a percentage of revenue, O'Reilly Automotive invested 9.1% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
  10. Net Margins: O'Reilly Automotive Net Margins in the year 2016 were 12.1%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of O'Reilly Automotive

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

O'Reilly Automotive is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of O'Reilly Automotive

With $8.6 billion revenues, O'Reilly Automotive ranked number 11 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Auto Parts industry by revenues during 2016 were:

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of O'Reilly Automotiveand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of oreilly-automotive

Advance Auto Parts (AAP) Business Analysis – Analyze Historical Performance, Strategic...

Advance Auto Parts Inc with $10 billion revenues in the year 2016 was the number 8 Auto Parts company. Read this report to know the top competitors of Advance Auto Parts and identify growth and cost optimization opportunities of Advance Auto Parts

BorgWarner (BWA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Borgwarner Inc with $9 billion revenues in the year 2016 was the number 9 Auto Parts company. Read this report to know the top competitors of BorgWarner and identify growth and cost optimization opportunities of BorgWarner

Tenneco (TEN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tenneco Inc with $9 billion revenues in the year 2016 was the number 10 Auto Parts company. Read this report to know the top competitors of Tenneco and identify growth and cost optimization opportunities of Tenneco

LKQ (LKQ) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

LKQ Corp with $9 billion revenues in the year 2016 was the number 12 Auto Parts company. Read this report to know the top competitors of LKQ and identify growth and cost optimization opportunities of LKQ

Dana (DAN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dana Inc with $6 billion revenues in the year 2016 was the number 13 Auto Parts company. Read this report to know the top competitors of Dana and identify growth and cost optimization opportunities of Dana

American Axle & Manufacturing (AXL) Business Analysis – Analyze Historical Performance,...

American Axle & Manufacturing Holdings Inc with $4 billion revenues in the year 2016 was the number 14 Auto Parts company. Read this report to know the top competitors of American Axle & Manufacturing and identify growth and cost optimization opportunities of American Axle & Manufacturing

Revenues Analysis

O’Reilly Automotive (ORLY) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of O'Reilly Automotive Inc (ORLY) from 2012 to 2016. O'Reilly Automotive generated a total of $8.6 billion revenues during 2016. O'Reilly Automotive reported a revenue growth of 7.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

O’Reilly Automotive (ORLY) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of O'Reilly Automotive Inc (ORLY) from 2002 to 2016. O'Reilly Automotive generated a total of $8.6 billion revenues during 2016. O'Reilly Automotive reported a revenue growth of 7.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

O’Reilly Automotive (ORLY) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of O'Reilly Automotive Inc (ORLY) revenue growth with Auto Parts industry growth during the last five years from 2012 to 2016. O'Reilly Automotive reported a revenue growth of 7.9% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. O'Reilly Automotive growth was faster than the industry during 2016.

Profit Analysis