O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
NASDAQ:ORLY - US67103H1077 - Common Stock
104.84 USD
-0.2 (-0.19%)
104.84 USD
0 (0%)
ORLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. ORLY has an excellent profitability rating, but there are some minor concerns on its financial health. ORLY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ORLY had positive earnings in the past year.
In the past year ORLY had a positive cash flow from operations.
In the past 5 years ORLY has always been profitable.
In the past 5 years ORLY always reported a positive cash flow from operatings.
1.2 Ratios
ORLY's Return On Assets of 15.32% is amongst the best of the industry. ORLY outperforms 92.68% of its industry peers.
ORLY has a better Return On Invested Capital (36.27%) than 99.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORLY is significantly above the industry average of 12.10%.
| 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
ORLY has a Profit Margin of 14.16%. This is amongst the best in the industry. ORLY outperforms 95.94% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 19.22%, ORLY belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
In the last couple of years the Operating Margin of ORLY has remained more or less at the same level.
ORLY has a better Gross Margin (51.40%) than 81.30% of its industry peers.
In the last couple of years the Gross Margin of ORLY has remained more or less at the same level.
| 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
ORLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ORLY has less shares outstanding than it did 1 year ago.
ORLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ORLY has an improved debt to assets ratio.
2.2 Solvency
ORLY has an Altman-Z score of 4.48. This indicates that ORLY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.48, ORLY belongs to the top of the industry, outperforming 84.55% of the companies in the same industry.
The Debt to FCF ratio of ORLY is 3.29, which is a good value as it means it would take ORLY, 3.29 years of fcf income to pay off all of its debts.
ORLY has a Debt to FCF ratio of 3.29. This is in the better half of the industry: ORLY outperforms 72.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.48 |
ROIC/WACC3.91
WACC9.27%
2.3 Liquidity
A Current Ratio of 0.72 indicates that ORLY may have some problems paying its short term obligations.
ORLY's Current ratio of 0.72 is on the low side compared to the rest of the industry. ORLY is outperformed by 87.80% of its industry peers.
A Quick Ratio of 0.11 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a worse Quick ratio (0.11) than 94.31% 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.
ORLY shows a small growth in Revenue. In the last year, the Revenue has grown by 5.15%.
Measured over the past years, ORLY shows a quite strong growth in Revenue. The Revenue has been growing by 10.48% on average per year.
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
ORLY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.90% yearly.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y10.82%
EPS Next 2Y11.49%
EPS Next 3Y11.08%
EPS Next 5Y9.9%
Revenue Next Year6.32%
Revenue Next 2Y6.43%
Revenue Next 3Y6.33%
Revenue Next 5Y5.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 37.44, which means the current valuation is very expensive for ORLY.
The rest of the industry has a similar Price/Earnings ratio as ORLY.
ORLY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.06.
ORLY is valuated quite expensively with a Price/Forward Earnings ratio of 31.11.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, ORLY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.44 | ||
| Fwd PE | 31.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORLY is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as ORLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.2 | ||
| EV/EBITDA | 25.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ORLY may justify a higher PE ratio.
PEG (NY)3.46
PEG (5Y)2.1
EPS Next 2Y11.49%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
ORLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.84
-0.2 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change1262.11%
Ins Owners0.47%
Ins Owner Change-0.84%
Market Cap88.96B
Analysts78.89
Price Target108.12 (3.13%)
Short Float %1.7%
Short Ratio3.07
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)9.59%
PT rev (3m)-92.84%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-93.21%
EPS NY rev (1m)0.63%
EPS NY rev (3m)-93.29%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.44 | ||
| Fwd PE | 31.11 | ||
| P/S | 5.2 | ||
| P/FCF | 50.2 | ||
| P/OCF | 30.59 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.08 |
EPS(TTM)2.8
EY2.67%
EPS(NY)3.37
Fwd EY3.21%
FCF(TTM)2.09
FCFY1.99%
OCF(TTM)3.43
OCFY3.27%
SpS20.18
BVpS-1.45
TBVpS-2.56
PEG (NY)3.46
PEG (5Y)2.1
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 | 4.48 |
F-Score7
WACC9.27%
ROIC/WACC3.91
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 Y10.82%
EPS Next 2Y11.49%
EPS Next 3Y11.08%
EPS Next 5Y9.9%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%5.92%
Revenue Next Year6.32%
Revenue Next 2Y6.43%
Revenue Next 3Y6.33%
Revenue Next 5Y5.71%
EBIT growth 1Y1.84%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year24.02%
EBIT Next 3Y13.03%
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%