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O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis

NASDAQ:ORLY - Nasdaq - US67103H1077 - Common Stock - Currency: USD

1332.25  -7.36 (-0.55%)

Fundamental Rating

5

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. ORLY scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ORLY is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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7

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.
Each year in the past 5 years ORLY has been profitable.
In the past 5 years ORLY always reported a positive cash flow from operatings.
ORLY Yearly Net Income VS EBIT VS OCF VS FCFORLY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

1.2 Ratios

ORLY has a Return On Assets of 15.55%. This is amongst the best in 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.
Measured over the past 3 years, the Average Return On Invested Capital for ORLY is significantly above the industry average of 13.04%.
Industry RankSector 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%
ORLY Yearly ROA, ROE, ROICORLY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1K -1K -2K -3K

1.3 Margins

With an excellent Profit Margin value of 14.10%, ORLY belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
In the last couple of years the Profit Margin of ORLY has remained more or less at the same level.
Looking at the Operating Margin, with a value of 19.21%, ORLY belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
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 78.51% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ORLY Yearly Profit, Operating, Gross MarginsORLY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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5

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.
Compared to 5 years ago, ORLY has less shares outstanding
ORLY has a better debt/assets ratio than last year.
ORLY Yearly Shares OutstandingORLY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
ORLY Yearly Total Debt VS Total AssetsORLY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

ORLY has an Altman-Z score of 4.11. This indicates that ORLY is financially healthy and has little risk of bankruptcy at the moment.
ORLY has a better Altman-Z score (4.11) than 83.47% 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.
ORLY has a Debt to FCF ratio of 2.77. This is in the better half of the industry: ORLY outperforms 71.07% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 2.77
Altman-Z 4.11
ROIC/WACC4.02
WACC9.29%
ORLY Yearly LT Debt VS Equity VS FCFORLY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B

2.3 Liquidity

A Current Ratio of 0.71 indicates that ORLY may have some problems paying its short term obligations.
The Current ratio of ORLY (0.71) is worse than 89.26% of its industry peers.
ORLY has a Quick 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.
With a Quick ratio value of 0.10, ORLY is not doing good in the industry: 95.87% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.71
Quick Ratio 0.1
ORLY Yearly Current Assets VS Current LiabilitesORLY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.57% 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.
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

ORLY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.46% yearly.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y10.96%
EPS Next 2Y11.55%
EPS Next 3Y11.57%
EPS Next 5Y10.46%
Revenue Next Year5.81%
Revenue Next 2Y6%
Revenue Next 3Y6.24%
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.
ORLY Yearly Revenue VS EstimatesORLY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
ORLY Yearly EPS VS EstimatesORLY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60 80

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.65, which means the current valuation is very expensive for ORLY.
ORLY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ORLY to the average of the S&P500 Index (24.83), we can say ORLY is valued slightly more expensively.
The Price/Forward Earnings ratio is 26.33, which means the current valuation is very expensive for ORLY.
ORLY's Price/Forward Earnings is on the same level as the industry average.
ORLY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.94.
Industry RankSector Rank
PE 32.65
Fwd PE 26.33
ORLY Price Earnings VS Forward Price EarningsORLY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ORLY is valued a bit more expensive than 62.81% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ORLY.
Industry RankSector Rank
P/FCF 37.31
EV/EBITDA 22.07
ORLY Per share dataORLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200

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)2.98
PEG (5Y)1.83
EPS Next 2Y11.55%
EPS Next 3Y11.57%

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0

5. Dividend

5.1 Amount

ORLY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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O'REILLY AUTOMOTIVE INC

NASDAQ:ORLY (5/13/2025, 11:15:37 AM)

1332.25

-7.36 (-0.55%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners87.91%
Inst Owner Change2.54%
Ins Owners0.52%
Ins Owner Change-1.41%
Market Cap76.08B
Analysts78.38
Price Target1510.76 (13.4%)
Short Float %1.27%
Short Ratio1.59
Dividend
Industry RankSector 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)-5.76%
Min EPS beat(2)-7.07%
Max EPS beat(2)-4.44%
EPS beat(4)0
Avg EPS beat(4)-5.13%
Min EPS beat(4)-7.07%
Max EPS beat(4)-3.15%
EPS beat(8)1
Avg EPS beat(8)-2.98%
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)-1.81%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)7
Avg Revenue beat(16)-0.25%
PT rev (1m)3.53%
PT rev (3m)11.85%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.02%
Valuation
Industry RankSector Rank
PE 32.65
Fwd PE 26.33
P/S 4.51
P/FCF 37.31
P/OCF 24.54
P/B N/A
P/tB N/A
EV/EBITDA 22.07
EPS(TTM)40.81
EY3.06%
EPS(NY)50.59
Fwd EY3.8%
FCF(TTM)35.71
FCFY2.68%
OCF(TTM)54.29
OCFY4.08%
SpS295.38
BVpS-23.77
TBVpS-40.11
PEG (NY)2.98
PEG (5Y)1.83
Profitability
Industry RankSector 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 RankSector 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 4.11
F-Score5
WACC9.29%
ROIC/WACC4.02
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 Y10.96%
EPS Next 2Y11.55%
EPS Next 3Y11.57%
EPS Next 5Y10.46%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%4.04%
Revenue Next Year5.81%
Revenue Next 2Y6%
Revenue Next 3Y6.24%
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%