Why O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) qualifies as a quality stock.

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.

Exploring Why ORLY Holds Appeal 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 44.8%, 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.
• ORLY maintains a healthy Debt/Free Cash Flow Ratio of 2.77, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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.
• ORLY has consistently achieved strong EBIT growth over the past 5 years, with a 11.1% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• ORLY has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of ORLY telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to ORLY. ORLY was compared to 121 industry peers in the Specialty Retail industry. While ORLY has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, ORLY is valued expensive at the moment.

Our latest full fundamental report of ORLY contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.