O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
USA - NASDAQ:ORLY - US67103H1077 - Common Stock
94.44 USD
-0.71 (-0.75%)
94.44 USD
0 (0%)
ORLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. While ORLY has a great profitability rating, 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
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.
ORLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ORLY (15.26%) is better than 92.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 34.84%, ORLY belongs to the top 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 11.80%.
The last Return On Invested Capital (34.84%) for ORLY is well below the 3 year average (40.10%), which needs to be investigated, but indicates that ORLY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.26% | ||
| ROE | N/A | ||
| ROIC | 34.84% |
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's Profit Margin of 14.22% is amongst the best of the industry. ORLY outperforms 95.87% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
ORLY's Operating Margin of 19.30% is amongst the best of the industry. ORLY outperforms 95.87% of its industry peers.
In the last couple of years the Operating Margin of ORLY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 51.47%, ORLY belongs to the top of the industry, outperforming 80.99% of the companies in the same industry.
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 | 19.3% | ||
| PM (TTM) | 14.22% | ||
| GM | 51.47% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ORLY is creating value.
The number of shares outstanding for ORLY has been reduced compared to 1 year ago.
The number of shares outstanding for ORLY has been reduced compared to 5 years ago.
The debt/assets ratio for ORLY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.19 indicates that ORLY is not in any danger for bankruptcy at the moment.
ORLY's Altman-Z score of 4.19 is amongst the best of the industry. ORLY outperforms 82.64% of its industry peers.
ORLY has a debt to FCF ratio of 3.79. This is a good value and a sign of high solvency as ORLY would need 3.79 years to pay back of all of its debts.
ORLY has a better Debt to FCF ratio (3.79) than 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.19 |
ROIC/WACC3.79
WACC9.19%
2.3 Liquidity
A Current Ratio of 0.76 indicates that ORLY may have some problems paying its short term obligations.
The Current ratio of ORLY (0.76) is worse than 88.43% of its industry peers.
A Quick Ratio of 0.11 indicates that ORLY may have some problems paying its short term obligations.
With a Quick ratio value of 0.11, ORLY is not doing good in the industry: 95.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
ORLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.12%.
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 6.19%.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
EPS 1Y (TTM)7.12%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%11.74%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%7.82%
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.
ORLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y10.83%
EPS Next 2Y11.48%
EPS Next 3Y11.15%
EPS Next 5Y9.9%
Revenue Next Year6.38%
Revenue Next 2Y6.46%
Revenue Next 3Y6.35%
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.
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
A Price/Earnings ratio of 32.68 indicates a quite expensive valuation of ORLY.
ORLY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.11, ORLY is valued a bit more expensive.
ORLY is valuated quite expensively with a Price/Forward Earnings ratio of 28.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORLY is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ORLY to the average of the S&P500 Index (22.55), we can say ORLY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 28.03 |
4.2 Price Multiples
ORLY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ORLY is more expensive than 61.98% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ORLY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.28 | ||
| EV/EBITDA | 22.19 |
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.
ORLY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)1.83
EPS Next 2Y11.48%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
94.44
-0.71 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change0.66%
Ins Owners0.47%
Ins Owner Change-0.84%
Market Cap80.13B
Revenue(TTM)17.46B
Net Income(TTM)2.48B
Analysts80.54
Price Target112.39 (19.01%)
Short Float %1.37%
Short Ratio2.47
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)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.97%
Max EPS beat(2)0.02%
EPS beat(4)1
Avg EPS beat(4)-3.36%
Min EPS beat(4)-7.04%
Max EPS beat(4)0.02%
EPS beat(8)1
Avg EPS beat(8)-3.27%
EPS beat(12)4
Avg EPS beat(12)-1.53%
EPS beat(16)6
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-2.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.23%
Revenue beat(16)5
Avg Revenue beat(16)-1.02%
PT rev (1m)3.53%
PT rev (3m)13.92%
EPS NQ rev (1m)1.45%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 28.03 | ||
| P/S | 4.59 | ||
| P/FCF | 51.28 | ||
| P/OCF | 29.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.19 |
EPS(TTM)2.89
EY3.06%
EPS(NY)3.37
Fwd EY3.57%
FCF(TTM)1.84
FCFY1.95%
OCF(TTM)3.24
OCFY3.44%
SpS20.58
BVpS-1.05
TBVpS-2.17
PEG (NY)3.02
PEG (5Y)1.83
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.26% | ||
| ROE | N/A | ||
| ROCE | 44.53% | ||
| ROIC | 34.84% | ||
| ROICexc | 35.8% | ||
| ROICexgc | 41.08% | ||
| OM | 19.3% | ||
| PM (TTM) | 14.22% | ||
| GM | 51.47% | ||
| FCFM | 8.95% |
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%
ROICexgc growth 3Y-2.69%
ROICexgc 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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 238.82% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 71.15% | ||
| Profit Quality | 62.91% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | 4.19 |
F-Score7
WACC9.19%
ROIC/WACC3.79
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)7.12%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%11.74%
EPS Next Y10.83%
EPS Next 2Y11.48%
EPS Next 3Y11.15%
EPS Next 5Y9.9%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%7.82%
Revenue Next Year6.38%
Revenue Next 2Y6.46%
Revenue Next 3Y6.35%
Revenue Next 5Y5.71%
EBIT growth 1Y4.31%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year24.08%
EBIT Next 3Y13.01%
EBIT Next 5Y9.52%
FCF growth 1Y-34.46%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y-16.9%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%
O'REILLY AUTOMOTIVE INC / ORLY FAQ
What is the fundamental rating for ORLY stock?
ChartMill assigns a fundamental rating of 5 / 10 to ORLY.
What is the valuation status for ORLY stock?
ChartMill assigns a valuation rating of 2 / 10 to O'REILLY AUTOMOTIVE INC (ORLY). This can be considered as Overvalued.
What is the profitability of ORLY stock?
O'REILLY AUTOMOTIVE INC (ORLY) has a profitability rating of 8 / 10.
What is the financial health of O'REILLY AUTOMOTIVE INC (ORLY) stock?
The financial health rating of O'REILLY AUTOMOTIVE INC (ORLY) is 5 / 10.
What is the expected EPS growth for O'REILLY AUTOMOTIVE INC (ORLY) stock?
The Earnings per Share (EPS) of O'REILLY AUTOMOTIVE INC (ORLY) is expected to grow by 10.83% in the next year.