Price to Sales (P/S)
since 2005
Calculation
O’Reilly Automotive Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2022 | 3.24 | = | 649.24 | ÷ | 200.11 | 200.11 | = | 13,327,563 | ÷ | 66,600,918 | |
| Feb 26, 2021 | 2.71 | = | 447.33 | ÷ | 165.29 | 165.29 | = | 11,604,493 | ÷ | 70,206,669 | |
| Feb 28, 2020 | 2.72 | = | 368.72 | ÷ | 135.52 | 135.52 | = | 10,149,985 | ÷ | 74,897,080 | |
| Feb 27, 2019 | 3.02 | = | 367.96 | ÷ | 121.68 | 121.68 | = | 9,536,428 | ÷ | 78,375,610 | |
| Feb 28, 2018 | 2.28 | = | 244.19 | ÷ | 107.30 | 107.30 | = | 8,977,726 | ÷ | 83,670,900 | |
| Feb 28, 2017 | 2.90 | = | 271.71 | ÷ | 93.77 | 93.77 | = | 8,593,096 | ÷ | 91,639,693 | |
| Feb 26, 2016 | 3.21 | = | 262.93 | ÷ | 81.97 | 81.97 | = | 7,966,674 | ÷ | 97,189,417 | |
| Feb 27, 2015 | 2.93 | = | 208.13 | ÷ | 70.99 | 70.99 | = | 7,216,081 | ÷ | 101,648,745 | |
| Feb 28, 2014 | 2.41 | = | 150.85 | ÷ | 62.51 | 62.51 | = | 6,649,237 | ÷ | 106,364,924 | |
| Feb 28, 2013 | 1.83 | = | 101.79 | ÷ | 55.54 | 55.54 | = | 6,182,184 | ÷ | 111,304,878 | |
| Feb 28, 2012 | 1.92 | = | 87.34 | ÷ | 45.47 | 45.47 | = | 5,788,816 | ÷ | 127,315,291 | |
| Feb 28, 2011 | 1.45 | = | 55.58 | ÷ | 38.25 | 38.25 | = | 5,397,525 | ÷ | 141,128,889 | |
| Feb 26, 2010 | 1.12 | = | 39.30 | ÷ | 35.23 | 35.23 | = | 4,847,062 | ÷ | 137,566,704 | |
| Mar 2, 2009 | 1.22 | = | 32.23 | ÷ | 26.50 | 26.50 | = | 3,576,553 | ÷ | 134,952,674 | |
| Mar 3, 2008 | 1.25 | = | 27.26 | ÷ | 21.86 | 21.86 | = | 2,522,319 | ÷ | 115,390,026 | |
| Mar 1, 2007 | 1.70 | = | 34.02 | ÷ | 20.03 | 20.03 | = | 2,283,222 | ÷ | 113,981,927 | |
| Mar 15, 2006 | 1.96 | = | 35.71 | ÷ | 18.19 | 18.19 | = | 2,045,318 | ÷ | 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 trajectory from 2006 to 2022 is characterized by substantial growth in both nominal share value and revenue generation per share, accompanied by fluctuating market valuation multiples.
- Revenue Growth Performance
- Sales per share exhibited an uninterrupted upward trend throughout the entire period, rising from 18.19 US$ in 2006 to 200.11 US$ by 2022. This consistent year-over-year increase indicates a strong and steady growth in operational scale and revenue efficiency per outstanding share.
- Share Price Evolution
- The share price experienced significant long-term appreciation, growing from 35.71 US$ in 2006 to 649.24 US$ in 2022. While the overall trend was positive, the growth was not linear, with a notable dip occurring between 2007 and 2008 before entering a period of sustained acceleration.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio reveals three distinct valuation phases. First, a period of contraction occurred between 2006 and 2010, where the ratio declined from 1.96 to a low of 1.12, suggesting that share price growth lagged behind revenue growth. Second, a phase of valuation expansion took place from 2011 to 2016, with the ratio peaking at 3.21, reflecting increased market confidence and a higher premium attributed to each dollar of sales. Third, a period of volatility and stabilization followed from 2017 to 2022, with the ratio fluctuating between 2.28 and 3.24.
- Valuation Correlation
- The divergence between the linear growth of sales per share and the non-linear movement of the share price is captured in the P/S ratio. The increase in the ratio from 2011 onward indicates that the market began valuing the company's revenue streams more aggressively, shifting from a valuation multiple of approximately 1.1x to over 3.2x sales by the end of the analyzed period.
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Comparison to Competitors
O’Reilly Automotive Inc., P/S, long-term trends, comparison to competitors
| O’Reilly Automotive Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Feb 28, 2022 | 3.24 | 3.41 | 2.39 | 1.46 | 2.48 |
| Feb 26, 2021 | 2.71 | 4.32 | 1.77 | 0.71 | 1.34 |
| Feb 28, 2020 | 2.72 | 3.56 | 1.94 | 1.23 | 1.66 |
| Feb 27, 2019 | 3.02 | 3.43 | 2.01 | 1.02 | 1.47 |
| Feb 28, 2018 | 2.28 | 3.89 | 1.88 | 1.08 | 1.53 |
| Feb 28, 2017 | 2.90 | 2.90 | 1.85 | 1.15 | 1.68 |
| Feb 26, 2016 | 3.21 | 2.58 | 1.77 | 1.26 | 1.65 |
| Feb 27, 2015 | 2.93 | 1.85 | 1.38 | 0.93 | 1.57 |
| Feb 28, 2014 | 2.41 | 2.21 | 1.39 | 0.82 | 1.33 |
| Feb 28, 2013 | 1.83 | 2.03 | 1.08 | 0.75 | 1.27 |
| Feb 28, 2012 | 1.92 | 1.70 | 0.89 | 0.73 | 0.89 |
| Feb 28, 2011 | 1.45 | 2.26 | 0.83 | 0.74 | 0.87 |
| Feb 26, 2010 | 1.12 | 2.27 | 0.59 | 0.56 | 0.56 |
| Mar 2, 2009 | 1.22 | 1.31 | 0.64 | 0.74 | 0.77 |
| Mar 3, 2008 | 1.25 | 2.11 | 0.80 | 1.02 | 0.69 |
| Mar 1, 2007 | 1.70 | 1.56 | 1.11 | 1.17 | 0.73 |
| Mar 15, 2006 | 1.96 | 1.93 | 1.11 | 1.14 | 0.79 |
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).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
O’Reilly Automotive Inc., P/S, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| O’Reilly Automotive Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Feb 28, 2022 | 3.24 | 2.94 |
| Feb 26, 2021 | 2.71 | 3.23 |
| Feb 28, 2020 | 2.72 | 2.73 |
| Feb 27, 2019 | 3.02 | 2.56 |
| Feb 28, 2018 | 2.28 | 2.67 |
| Feb 28, 2017 | 2.90 | 2.16 |
| Feb 26, 2016 | 3.21 | 1.97 |
| Feb 27, 2015 | 2.93 | 1.47 |
| Feb 28, 2014 | 2.41 | 1.52 |
| Feb 28, 2013 | 1.83 | 1.30 |
| Feb 28, 2012 | 1.92 | 1.06 |
| Feb 28, 2011 | 1.45 | 1.10 |
| Feb 26, 2010 | 1.12 | 0.83 |
| Mar 2, 2009 | 1.22 | 0.76 |
| Mar 3, 2008 | 1.25 | 0.96 |
| Mar 1, 2007 | 1.70 | 1.12 |
| Mar 15, 2006 | 1.96 | 1.14 |
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).
Comparison to Industry (Consumer Discretionary)
O’Reilly Automotive Inc., P/S, long-term trends, comparison to industry (consumer discretionary)
| O’Reilly Automotive Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 28, 2022 | 3.24 | 3.58 |
| Feb 26, 2021 | 2.71 | 3.81 |
| Feb 28, 2020 | 2.72 | 2.33 |
| Feb 27, 2019 | 3.02 | 2.05 |
| Feb 28, 2018 | 2.28 | 2.06 |
| Feb 28, 2017 | 2.90 | 1.68 |
| Feb 26, 2016 | 3.21 | 1.57 |
| Feb 27, 2015 | 2.93 | 1.32 |
| Feb 28, 2014 | 2.41 | 1.33 |
| Feb 28, 2013 | 1.83 | 1.06 |
| Feb 28, 2012 | 1.92 | 0.97 |
| Feb 28, 2011 | 1.45 | 0.96 |
| Feb 26, 2010 | 1.12 | 0.92 |
| Mar 2, 2009 | 1.22 | 0.66 |
| Mar 3, 2008 | 1.25 | 0.79 |
| Mar 1, 2007 | 1.70 | 0.86 |
| Mar 15, 2006 | 1.96 | 0.79 |
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).