O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
NASDAQ:ORLY - Nasdaq - US67103H1077 - Common Stock - Currency: USD
Overall ORLY gets a fundamental rating of 5 out of 10. We evaluated ORLY against 120 industry peers in the Specialty Retail industry. ORLY scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ORLY.
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
ORLY's Return On Assets of 15.55% is amongst the best of the industry. ORLY outperforms 92.50% of its industry peers.
With an excellent Return On Invested Capital value of 37.37%, ORLY belongs to the best of the industry, outperforming 99.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ORLY is significantly above the industry average of 13.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.55% | ||
| ROE | N/A | ||
| ROIC | 37.37% |
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
ORLY has a Profit Margin of 14.10%. This is amongst the best in the industry. ORLY outperforms 95.83% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
ORLY has a better Operating Margin (19.21%) than 96.67% 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 51.23% is fine compared to the rest of the industry. ORLY outperforms 79.17% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.21% | ||
| PM (TTM) | 14.1% | ||
| GM | 51.23% |
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
ORLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ORLY has been reduced compared to 1 year ago.
ORLY has less shares outstanding than it did 5 years ago.
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
ORLY has an Altman-Z score of 1.54. This is a bad value and indicates that ORLY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ORLY (1.54) is worse than 65.00% of its industry peers.
ORLY has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as ORLY would need 2.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.77, ORLY is in the better half of the industry, outperforming 74.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 1.54 |
ROIC/WACC4.51
WACC8.29%
2.3 Liquidity
ORLY has a Current Ratio of 0.71. 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 has a worse Current ratio (0.71) than 89.17% of its industry peers.
A Quick Ratio of 0.10 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a Quick ratio of 0.10. This is amonst the worse of the industry: ORLY underperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.57% over the past year.
Measured over the past years, ORLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.85% on average per year.
The Revenue has been growing slightly by 4.90% in the past year.
ORLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
EPS 1Y (TTM)3.57%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%1.63%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%4.04%
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 10.23% on average per year.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y10.11%
EPS Next 2Y11.29%
EPS Next 3Y11.11%
EPS Next 5Y10.23%
Revenue Next Year5.84%
Revenue Next 2Y6.12%
Revenue Next 3Y6.29%
Revenue Next 5Y5.63%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.25, the valuation of ORLY can be described as very cheap.
Based on the Price/Earnings ratio, ORLY is valued cheaper than 98.33% of the companies in the same industry.
ORLY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 1.82, the valuation of ORLY can be described as very cheap.
ORLY's Price/Forward Earnings ratio is rather cheap when compared to the industry. ORLY is cheaper than 99.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. ORLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.25 | ||
| Fwd PE | 1.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORLY is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ORLY is valued cheaply inside the industry as 98.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.56 | ||
| EV/EBITDA | 2.88 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ORLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.22
PEG (5Y)0.13
EPS Next 2Y11.29%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.71
+1.84 (+2.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change2.59%
Ins Owners0.52%
Ins Owner Change-0.8%
Market Cap5.23B
Analysts78.89
Price TargetN/A
Short Float %1.55%
Short Ratio1.9
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)-5.74%
Min EPS beat(2)-7.04%
Max EPS beat(2)-4.44%
EPS beat(4)0
Avg EPS beat(4)-5.12%
Min EPS beat(4)-7.04%
Max EPS beat(4)-3.15%
EPS beat(8)1
Avg EPS beat(8)-2.97%
EPS beat(12)4
Avg EPS beat(12)-1.22%
EPS beat(16)7
Avg EPS beat(16)1.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-1.77%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)2.07%
PT rev (3m)3.65%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.26%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.25 | ||
| Fwd PE | 1.82 | ||
| P/S | 0.31 | ||
| P/FCF | 2.56 | ||
| P/OCF | 1.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.88 |
EPS(TTM)40.81
EY44.5%
EPS(NY)50.36
Fwd EY54.91%
FCF(TTM)35.78
FCFY39.02%
OCF(TTM)54.4
OCFY59.32%
SpS296
BVpS-23.82
TBVpS-40.19
PEG (NY)0.22
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.55% | ||
| ROE | N/A | ||
| ROCE | 47.77% | ||
| ROIC | 37.37% | ||
| ROICexc | 38.45% | ||
| ROICexgc | 44.8% | ||
| OM | 19.21% | ||
| PM (TTM) | 14.1% | ||
| GM | 51.23% | ||
| FCFM | 12.09% |
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-Score5
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 223.64% | ||
| Cap/Sales | 6.29% | ||
| Interest Coverage | 15.15 | ||
| Cash Conversion | 83.47% | ||
| Profit Quality | 85.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.54 |
F-Score5
WACC8.29%
ROIC/WACC4.51
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)3.57%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%1.63%
EPS Next Y10.11%
EPS Next 2Y11.29%
EPS Next 3Y11.11%
EPS Next 5Y10.23%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%4.04%
Revenue Next Year5.84%
Revenue Next 2Y6.12%
Revenue Next 3Y6.29%
Revenue Next 5Y5.63%
EBIT growth 1Y0.56%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year22.57%
EBIT Next 3Y12.39%
EBIT Next 5Y9.37%
FCF growth 1Y-18.08%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y-2.26%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%