O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
USA - NASDAQ:ORLY - US67103H1077 - Common Stock
103.93 USD
+0.24 (+0.23%)
103.93 USD
0 (0%)
Taking everything into account, ORLY scores 5 out of 10 in our fundamental rating. ORLY was compared to 122 industry peers in the Specialty Retail industry. ORLY scores excellent on profitability, but there are some minor concerns on its financial health. ORLY is valied quite expensively at the moment, while 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.
Each year in the past 5 years ORLY has been profitable.
ORLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ORLY (15.32%) is better than 92.62% of its industry peers.
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 12.02%.
| 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
Looking at the Profit Margin, with a value of 14.16%, ORLY belongs to the top of the industry, outperforming 95.90% of the companies in the same industry.
ORLY's Profit Margin has been stable in the last couple of years.
ORLY has a better Operating Margin (19.22%) than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ORLY is creating value.
ORLY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ORLY has less shares outstanding
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.45 indicates that ORLY is not in any danger for bankruptcy at the moment.
The Altman-Z score of ORLY (4.45) is better than 83.61% of its industry peers.
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 better Debt to FCF ratio (3.29) than 71.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.45 |
ROIC/WACC3.83
WACC9.47%
2.3 Liquidity
ORLY has a Current 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.
With a Current ratio value of 0.72, ORLY is not doing good in the industry: 88.52% of the companies in the same industry are doing better.
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 has a worse Quick ratio (0.11) than 95.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| 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 5.60%.
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.
Looking at the last year, ORLY shows a small growth in Revenue. The Revenue has grown by 5.15% in the last year.
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
The Earnings Per Share is expected to grow by 9.90% on average over the next years. This is quite good.
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 Y10.82%
EPS Next 2Y11.49%
EPS Next 3Y11.08%
EPS Next 5Y9.9%
Revenue Next Year6.33%
Revenue Next 2Y6.44%
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
Based on the Price/Earnings ratio of 37.12, the valuation of ORLY can be described as expensive.
ORLY's Price/Earnings is on the same level as the industry average.
ORLY is valuated rather expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
ORLY is valuated quite expensively with a Price/Forward Earnings ratio of 30.84.
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 (22.86), we can say ORLY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.12 | ||
| Fwd PE | 30.84 |
4.2 Price Multiples
ORLY's Enterprise Value to EBITDA ratio is in line with the industry average.
ORLY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.77 | ||
| EV/EBITDA | 24.83 |
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)3.43
PEG (5Y)2.08
EPS Next 2Y11.49%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
103.93
+0.24 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change1262.21%
Ins Owners0.47%
Ins Owner Change-0.84%
Market Cap88.18B
Analysts79.46
Price Target108.56 (4.45%)
Short Float %1.73%
Short Ratio3.23
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)0.88%
PT rev (3m)7.89%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.12 | ||
| Fwd PE | 30.84 | ||
| P/S | 5.15 | ||
| P/FCF | 49.77 | ||
| P/OCF | 30.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.83 |
EPS(TTM)2.8
EY2.69%
EPS(NY)3.37
Fwd EY3.24%
FCF(TTM)2.09
FCFY2.01%
OCF(TTM)3.43
OCFY3.3%
SpS20.18
BVpS-1.45
TBVpS-2.56
PEG (NY)3.43
PEG (5Y)2.08
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 | 4.45 |
F-Score7
WACC9.47%
ROIC/WACC3.83
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 Year6.33%
Revenue Next 2Y6.44%
Revenue Next 3Y6.34%
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%