O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
NASDAQ:ORLY - Nasdaq - US67103H1077 - Common Stock - Currency: USD
Taking everything into account, ORLY scores 5 out of 10 in our fundamental rating. ORLY was compared to 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
ORLY had positive earnings in the past year.
ORLY had a positive operating cash flow in the past year.
ORLY had positive earnings in each of the past 5 years.
In the past 5 years ORLY always reported a positive cash flow from operatings.
1.2 Ratios
ORLY's Return On Assets of 15.55% is amongst the best of the industry. ORLY outperforms 92.56% of its industry peers.
The Return On Invested Capital of ORLY (37.37%) is better than 99.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORLY is significantly above the industry average of 12.74%.
| 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 better Profit Margin (14.10%) than 95.04% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
ORLY has a Operating Margin of 19.21%. This is amongst the best in the industry. ORLY outperforms 95.87% of its industry peers.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY has a Gross Margin of 51.23%. This is in the better half of the industry: ORLY outperforms 77.69% 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 | 19.21% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ORLY 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.
The debt/assets ratio for ORLY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.20 indicates that ORLY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.20, ORLY belongs to the top of the industry, outperforming 85.12% of the companies in the same industry.
The Debt to FCF ratio of ORLY is 2.77, which is a good value as it means it would take ORLY, 2.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ORLY (2.77) is better than 71.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 4.2 |
ROIC/WACC3.88
WACC9.64%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a Current ratio of 0.71. This is amonst the worse of the industry: ORLY underperforms 89.26% of its industry peers.
A Quick Ratio of 0.10 indicates that ORLY may have some problems paying its short term obligations.
ORLY's Quick ratio of 0.10 is on the low side compared to the rest of the industry. ORLY is outperformed by 95.87% 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.
The Earnings Per Share has been growing by 17.85% on average over the past years. This is quite good.
ORLY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
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)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
The Earnings Per Share is expected to grow by 10.46% on average over the next years. This is quite good.
ORLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y10.11%
EPS Next 2Y11.29%
EPS Next 3Y11.11%
EPS Next 5Y10.46%
Revenue Next Year5.84%
Revenue Next 2Y6.12%
Revenue Next 3Y6.29%
Revenue Next 5Y5.7%
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 33.58, ORLY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ORLY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ORLY to the average of the S&P500 Index (26.03), we can say ORLY is valued slightly more expensively.
A Price/Forward Earnings ratio of 27.22 indicates a quite expensive valuation of ORLY.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
The average S&P500 Price/Forward Earnings ratio is at 21.94. ORLY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
63.64% of the companies in the same industry are cheaper than ORLY, based on the Enterprise Value to EBITDA ratio.
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 | 38.38 | ||
| EV/EBITDA | 22.78 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.32
PEG (5Y)1.88
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 |
1370.49
-15.73 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change2.57%
Ins Owners0.52%
Ins Owner Change-1.39%
Market Cap78.27B
Analysts78.38
Price Target1510.76 (10.24%)
Short Float %1.27%
Short Ratio1.59
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)3.53%
PT rev (3m)11.85%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 27.22 | ||
| P/S | 4.64 | ||
| P/FCF | 38.38 | ||
| P/OCF | 25.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.78 |
EPS(TTM)40.81
EY2.98%
EPS(NY)50.36
Fwd EY3.67%
FCF(TTM)35.71
FCFY2.61%
OCF(TTM)54.29
OCFY3.96%
SpS295.38
BVpS-23.77
TBVpS-40.11
PEG (NY)3.32
PEG (5Y)1.88
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 | 4.2 |
F-Score5
WACC9.64%
ROIC/WACC3.88
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 5Y10.46%
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 5Y5.7%
EBIT growth 1Y0.56%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year23.28%
EBIT Next 3Y13.01%
EBIT Next 5Y9.54%
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%