The Compounding Tortoise

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The Compounding Tortoise
O'Reilly Automotive's 2024 Analyst Day

O'Reilly Automotive's 2024 Analyst Day

Commentary on Team O'Reilly's culture, focus on quality growth, and long-term prospects

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The Compounding Tortoise
Aug 21, 2024
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The Compounding Tortoise
O'Reilly Automotive's 2024 Analyst Day
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Next week, we’ll release our in-depth analysis of O'Reilly Automotive (ORLY). In March, we provided an overview of the key factors driving success—ROIIC, margin profile, and growth opportunities—along with a recent performance review of another industry leader in the auto parts aftermarket, AutoZone. That report offers a preview of the core principles that enable seemingly "boring" companies to achieve long-term growth and become enduring compounders.

Deep Dive - AutoZone

Deep Dive - AutoZone

The CT
·
March 28, 2024
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Having followed ORLY for many years, we’ll cover considerably more ground on its track record, capital allocation priorities, importance of management and highly motivated and trained professional parts people, and other qualitative aspects that have led to its to-date triumphs.

Additionally, we’ll go over the competitive landscape, i.e. peers’ recent financial performance, cover the differences between AZO, ORLY and AAP (Advance Auto Parts), and the impact of technological advancements on the auto parts’ demand.

Today, O’Reilly Automotive hosted its bi-annual analyst day.

It’s always fruitful to look back and see what the share price performance has been since. Pretty good with a total return of +62.6% or a CAGR of 27.5%, far ahead of the Nasdaq, S&P-500, and the entire retail sector.

Brad Beckham, ORLY’s CEO, emphasizes the importance of balancing pride in the company's long-term achievements with the need for daily efforts to capture market share and secure lasting customer loyalty. He oftentimes says: “We have our pride about our long-term performance, but we must continue to make sure we’re taking market share every day and win our customer’s long-term business.”

So, without further ado: let’s jump into the Analyst Day presentation and commentary.

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