Reasonable Growth, Debt Levels, and a High ROIC Make O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) Appealing to Quality Investors.

In this article we will dive into O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) as a possible candidate for quality investing. Investors should always do their own research, but we noticed O'REILLY AUTOMOTIVE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• ORLY has achieved substantial revenue growth over the past 5 years, with a 10.48% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of ORLY stands at 45.83%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 2.72, ORLY showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• ORLY exhibits impressive Profit Quality (5-year) with a 111.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• With a robust 5-year EBIT growth of 11.1%, ORLY showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of ORLY has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of ORLY

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

ORLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. ORLY scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ORLY is valued expensive at the moment.

For an up to date full fundamental analysis you can check the fundamental report of ORLY

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.