Price to Operating Profit (P/OP)
since 2005
Calculation
O’Reilly Automotive Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2022 | 14.82 | = | 649.24 | ÷ | 43.80 | 43.80 | = | 2,917,168 | ÷ | 66,600,918 | |
| Feb 26, 2021 | 12.98 | = | 447.33 | ÷ | 34.46 | 34.46 | = | 2,419,336 | ÷ | 70,206,669 | |
| Feb 28, 2020 | 14.38 | = | 368.72 | ÷ | 25.64 | 25.64 | = | 1,920,726 | ÷ | 74,897,080 | |
| Feb 27, 2019 | 15.89 | = | 367.96 | ÷ | 23.16 | 23.16 | = | 1,815,184 | ÷ | 78,375,610 | |
| Feb 28, 2018 | 11.84 | = | 244.19 | ÷ | 20.62 | 20.62 | = | 1,725,400 | ÷ | 83,670,900 | |
| Feb 28, 2017 | 14.65 | = | 271.71 | ÷ | 18.54 | 18.54 | = | 1,699,206 | ÷ | 91,639,693 | |
| Feb 26, 2016 | 16.88 | = | 262.93 | ÷ | 15.58 | 15.58 | = | 1,514,021 | ÷ | 97,189,417 | |
| Feb 27, 2015 | 16.65 | = | 208.13 | ÷ | 12.50 | 12.50 | = | 1,270,374 | ÷ | 101,648,745 | |
| Feb 28, 2014 | 14.54 | = | 150.85 | ÷ | 10.37 | 10.37 | = | 1,103,485 | ÷ | 106,364,924 | |
| Feb 28, 2013 | 11.59 | = | 101.79 | ÷ | 8.78 | 8.78 | = | 977,393 | ÷ | 111,304,878 | |
| Feb 28, 2012 | 12.83 | = | 87.34 | ÷ | 6.81 | 6.81 | = | 866,766 | ÷ | 127,315,291 | |
| Feb 28, 2011 | 11.00 | = | 55.58 | ÷ | 5.05 | 5.05 | = | 712,776 | ÷ | 141,128,889 | |
| Feb 26, 2010 | 10.06 | = | 39.30 | ÷ | 3.91 | 3.91 | = | 537,619 | ÷ | 137,566,704 | |
| Mar 2, 2009 | 12.96 | = | 32.23 | ÷ | 2.49 | 2.49 | = | 335,617 | ÷ | 134,952,674 | |
| Mar 3, 2008 | 10.31 | = | 27.26 | ÷ | 2.64 | 2.64 | = | 305,151 | ÷ | 115,390,026 | |
| Mar 1, 2007 | 13.74 | = | 34.02 | ÷ | 2.48 | 2.48 | = | 282,315 | ÷ | 113,981,927 | |
| Mar 15, 2006 | 15.90 | = | 35.71 | ÷ | 2.25 | 2.25 | = | 252,524 | ÷ | 112,425,511 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of O’Reilly Automotive Inc. Annual Report.
The financial data reveals several notable trends concerning the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the period from 2006 to 2022.
- Share Price
- The share price demonstrates an overall upward trajectory, increasing from $35.71 in 2006 to $649.24 in 2022. There are fluctuations throughout, with moderate declines or slower growth periods, such as the drop from $271.71 in 2017 to $244.19 in 2018. However, the general pattern is one of substantial appreciation, especially accelerating from 2014 onwards.
- Operating Profit per Share
- Operating profit per share shows consistent growth across the timeframe, rising from $2.25 in 2006 to $43.80 in 2022. The growth is steady and notable each year with some acceleration visible in later years, particularly from 2018 onward, suggesting improving operational efficiency or profitability on a per-share basis.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio fluctuates between approximately 10 and 17, without a clear upward or downward trend. Early years show a low point around 10.06 in 2010, followed by oscillations. Ratios tend to increase after 2014, peaking at 16.88 in 2016, then moderating to around 14-15 in the latest years. This pattern suggests changing market valuation multiples relative to operating profits, reflecting varying investor sentiment or risk perceptions over time.
In summary, the data indicates strong growth in both share price and operating profit per share, with the market valuation multiple as represented by the P/OP ratio showing cyclical behavior without a persistent trend. The company's financial performance appears robust with increasing operating profit driving share price appreciation, while valuation multiples have adjusted in response to market conditions or company-specific factors.
Comparison to Competitors
O’Reilly Automotive Inc., P/OP, long-term trends, comparison to competitors
| O’Reilly Automotive Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Feb 28, 2022 | 14.82 | 64.48 | 17.25 | 13.52 |
| Feb 26, 2021 | 12.98 | 72.85 | 12.33 | 8.11 |
| Feb 28, 2020 | 14.38 | 68.77 | 13.51 | 21.77 |
| Feb 27, 2019 | 15.89 | 64.31 | 13.82 | 10.61 |
| Feb 28, 2018 | 11.84 | 168.60 | 13.26 | 11.97 |
| Feb 28, 2017 | 14.65 | 94.32 | 13.88 | 13.66 |
| Feb 26, 2016 | 16.88 | 123.77 | 14.03 | 14.77 |
| Feb 27, 2015 | 16.65 | 925.12 | 11.86 | — |
| Feb 28, 2014 | 14.54 | 221.06 | 13.35 | — |
| Feb 28, 2013 | 11.59 | 183.43 | 11.36 | — |
| Feb 28, 2012 | 12.83 | 94.71 | 10.38 | — |
| Feb 28, 2011 | 11.00 | 54.92 | 11.50 | — |
| Feb 26, 2010 | 10.06 | 49.38 | 9.64 | — |
| Mar 2, 2009 | 12.96 | 29.93 | 6.82 | — |
| Mar 3, 2008 | 10.31 | 47.85 | 7.50 | — |
| Mar 1, 2007 | 13.74 | 43.07 | 9.71 | — |
| Mar 15, 2006 | 15.90 | 37.83 | 10.28 | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).