O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
USA - NASDAQ:ORLY - US67103H1077 - Common Stock
102.15 USD
+2.43 (+2.44%)
102.64 USD
+0.49 (+0.48%)
Overall ORLY gets a fundamental rating of 5 out of 10. We evaluated ORLY against 120 industry peers in the Specialty Retail industry. ORLY has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, ORLY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ORLY was profitable.
ORLY had a positive operating cash flow in the past year.
ORLY had positive earnings in each of the past 5 years.
Each year in the past 5 years ORLY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.32%, ORLY belongs to the top of the industry, outperforming 92.62% of the companies in the same industry.
With an excellent Return On Invested Capital value of 36.27%, ORLY belongs to the best of the industry, outperforming 99.18% of the companies in the same industry.
ORLY had an Average Return On Invested Capital over the past 3 years of 40.10%. This is significantly above the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | N/A | ||
| ROIC | 36.27% |
ROA(3y)16.72%
ROA(5y)16.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.1%
ROIC(5y)37.89%
1.3 Margins
The Profit Margin of ORLY (14.16%) is better than 95.08% of its industry peers.
In the last couple of years the Profit Margin of ORLY has remained more or less at the same level.
ORLY's Operating Margin of 19.22% is amongst the best of the industry. ORLY outperforms 96.72% of its industry peers.
In the last couple of years the Operating Margin of ORLY has remained more or less at the same level.
ORLY's Gross Margin of 51.40% is amongst the best of the industry. ORLY outperforms 80.33% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.22% | ||
| PM (TTM) | 14.16% | ||
| GM | 51.4% |
OM growth 3Y-3.98%
OM growth 5Y0.56%
PM growth 3Y-4.2%
PM growth 5Y0.83%
GM growth 3Y-0.94%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ORLY is creating value.
ORLY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ORLY has been reduced compared to 5 years ago.
Compared to 1 year ago, ORLY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.39 indicates that ORLY is not in any danger for bankruptcy at the moment.
The Altman-Z score of ORLY (4.39) is better than 83.61% of its industry peers.
ORLY has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as ORLY would need 3.29 years to pay back of all of its debts.
The Debt to FCF ratio of ORLY (3.29) is better than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.39 |
ROIC/WACC3.94
WACC9.2%
2.3 Liquidity
A Current Ratio of 0.72 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a Current ratio of 0.72. This is amonst the worse of the industry: ORLY underperforms 88.52% of its industry peers.
ORLY has a Quick Ratio of 0.72. This is a bad value and indicates that ORLY is not financially healthy enough and could expect problems in meeting its short term obligations.
ORLY's Quick ratio of 0.11 is on the low side compared to the rest of the industry. ORLY is outperformed by 94.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.60% over the past year.
ORLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.85% yearly.
Looking at the last year, ORLY shows a small growth in Revenue. The Revenue has grown by 5.15% in the last year.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
EPS 1Y (TTM)5.6%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%10.9%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%5.92%
3.2 Future
Based on estimates for the next years, ORLY will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.90% on average per year.
Based on estimates for the next years, ORLY will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y10.86%
EPS Next 2Y11.56%
EPS Next 3Y11.15%
EPS Next 5Y9.9%
Revenue Next Year6.36%
Revenue Next 2Y6.45%
Revenue Next 3Y6.34%
Revenue Next 5Y5.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 36.48 indicates a quite expensive valuation of ORLY.
The rest of the industry has a similar Price/Earnings ratio as ORLY.
The average S&P500 Price/Earnings ratio is at 27.02. ORLY is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 30.28 indicates a quite expensive valuation of ORLY.
ORLY's Price/Forward Earnings is on the same level as the industry average.
ORLY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.48 | ||
| Fwd PE | 30.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORLY indicates a slightly more expensive valuation: ORLY is more expensive than 60.66% of the companies listed in the same industry.
ORLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.91 | ||
| EV/EBITDA | 24.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORLY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ORLY may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)2.04
EPS Next 2Y11.56%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.15
+2.43 (+2.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change0.31%
Ins Owners0.47%
Ins Owner Change-0.84%
Market Cap86.67B
Analysts80.54
Price Target109.82 (7.51%)
Short Float %1.56%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.51%
Min EPS beat(2)-7.04%
Max EPS beat(2)-1.97%
EPS beat(4)0
Avg EPS beat(4)-4.15%
Min EPS beat(4)-7.04%
Max EPS beat(4)-1.97%
EPS beat(8)1
Avg EPS beat(8)-3.13%
EPS beat(12)4
Avg EPS beat(12)-1.05%
EPS beat(16)6
Avg EPS beat(16)0.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.12%
Revenue beat(4)0
Avg Revenue beat(4)-2.27%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-2.03%
Revenue beat(12)4
Avg Revenue beat(12)-1.07%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)1.28%
PT rev (3m)9.14%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.48 | ||
| Fwd PE | 30.28 | ||
| P/S | 5.06 | ||
| P/FCF | 48.91 | ||
| P/OCF | 29.8 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.43 |
EPS(TTM)2.8
EY2.74%
EPS(NY)3.37
Fwd EY3.3%
FCF(TTM)2.09
FCFY2.04%
OCF(TTM)3.43
OCFY3.36%
SpS20.18
BVpS-1.45
TBVpS-2.56
PEG (NY)3.36
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | N/A | ||
| ROCE | 46.36% | ||
| ROIC | 36.27% | ||
| ROICexc | 37.32% | ||
| ROICexgc | 43.23% | ||
| OM | 19.22% | ||
| PM (TTM) | 14.16% | ||
| GM | 51.4% | ||
| FCFM | 10.35% |
ROA(3y)16.72%
ROA(5y)16.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.1%
ROIC(5y)37.89%
ROICexc(3y)41.26%
ROICexc(5y)39.58%
ROICexgc(3y)49.25%
ROICexgc(5y)47.31%
ROCE(3y)51.25%
ROCE(5y)48.43%
ROICexcg growth 3Y-2.69%
ROICexcg growth 5Y10.22%
ROICexc growth 3Y-2.08%
ROICexc growth 5Y10.15%
OM growth 3Y-3.98%
OM growth 5Y0.56%
PM growth 3Y-4.2%
PM growth 5Y0.83%
GM growth 3Y-0.94%
GM growth 5Y-0.75%
F-Score7
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 233.76% | ||
| Cap/Sales | 6.64% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 76.99% | ||
| Profit Quality | 73.11% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | 4.39 |
F-Score7
WACC9.2%
ROIC/WACC3.94
Cap/Depr(3y)208.32%
Cap/Depr(5y)181.58%
Cap/Sales(3y)5.47%
Cap/Sales(5y)4.75%
Profit Quality(3y)96.76%
Profit Quality(5y)110.66%
High Growth Momentum
Growth
EPS 1Y (TTM)5.6%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%10.9%
EPS Next Y10.86%
EPS Next 2Y11.56%
EPS Next 3Y11.15%
EPS Next 5Y9.9%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%5.92%
Revenue Next Year6.36%
Revenue Next 2Y6.45%
Revenue Next 3Y6.34%
Revenue Next 5Y5.71%
EBIT growth 1Y1.84%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year24.08%
EBIT Next 3Y13.01%
EBIT Next 5Y9.52%
FCF growth 1Y-32.17%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y-14.65%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%