O'REILLY AUTOMOTIVE INC (ORLY)
US67103H1077 - Common Stock
We assign a fundamental rating of 5 out of 10 to ORLY. ORLY was compared to 126 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
ORLY had positive earnings in the past year.
In the past year ORLY had a positive cash flow from operations.
ORLY had positive earnings in each of the past 5 years.
Each year in the past 5 years ORLY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.72%, ORLY belongs to the best of the industry, outperforming 93.65% of the companies in the same industry.
ORLY's Return On Invested Capital of 39.67% is amongst the best of the industry. ORLY outperforms 99.21% of its industry peers.
ORLY had an Average Return On Invested Capital over the past 3 years of 40.15%. This is significantly above the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | N/A | ||
| ROIC | 39.67% |
ROA(3y)17.53%
ROA(5y)16.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.15%
ROIC(5y)34.83%
1.3 Margins
ORLY has a Profit Margin of 14.78%. This is amongst the best in the industry. ORLY outperforms 97.62% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 20.04%, ORLY belongs to the top of the industry, outperforming 97.62% 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 Gross Margin of 51.30%. This is amongst the best in the industry. ORLY outperforms 80.95% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.04% | ||
| PM (TTM) | 14.78% | ||
| GM | 51.3% |
OM growth 3Y-1.14%
OM growth 5Y1.16%
PM growth 3Y-0.57%
PM growth 5Y1.34%
GM growth 3Y-0.76%
GM growth 5Y-0.61%
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.
ORLY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.69 indicates that ORLY is not in any danger for bankruptcy at the moment.
The Altman-Z score of ORLY (3.69) is better than 76.98% of its industry peers.
The Debt to FCF ratio of ORLY is 2.65, which is a good value as it means it would take ORLY, 2.65 years of fcf income to pay off all of its debts.
ORLY has a better Debt to FCF ratio (2.65) than 65.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 3.69 |
ROIC/WACC4.49
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a worse Current ratio (0.71) than 95.24% 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.
Looking at the Quick ratio, with a value of 0.10, ORLY is doing worse than 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
ORLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.89%, which is quite good.
The Earnings Per Share has been growing by 19.03% on average over the past years. This is quite good.
Looking at the last year, ORLY shows a quite strong growth in Revenue. The Revenue has grown by 8.49% in the last year.
The Revenue has been growing by 10.64% on average over the past years. This is quite good.
EPS 1Y (TTM)13.89%
EPS 3Y17.8%
EPS 5Y19.03%
EPS growth Q2Q11.11%
Revenue 1Y (TTM)8.49%
Revenue growth 3Y10.87%
Revenue growth 5Y10.64%
Revenue growth Q2Q7.24%
3.2 Future
The Earnings Per Share is expected to grow by 11.91% 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 4.58% on average per year.
EPS Next Y12.26%
EPS Next 2Y11.49%
EPS Next 3Y11.54%
EPS Next 5Y11.91%
Revenue Next Year6.9%
Revenue Next 2Y6.36%
Revenue Next 3Y6.24%
Revenue Next 5Y4.58%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
ORLY is valuated quite expensively with a Price/Earnings ratio of 25.70.
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 (28.28), we can say ORLY is valued inline with the index average.
The Price/Forward Earnings ratio is 21.18, which indicates a rather expensive current valuation of ORLY.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
ORLY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 21.18 |
4.2 Price Multiples
ORLY's Enterprise Value to EBITDA ratio is in line with the industry average.
ORLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 17.71 |
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)2.1
PEG (5Y)1.35
EPS Next 2Y11.49%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
ORLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
O'REILLY AUTOMOTIVE INC
NASDAQ:ORLY (5/3/2024, 7:10:36 PM)
After market: 1012.95 0 (0%)1012.95
+6.72 (+0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap59.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 21.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.1
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.04% | ||
| PM (TTM) | 14.78% | ||
| GM | 51.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.89%
EPS 3Y17.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.49%
Revenue growth 3Y10.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y