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 123 industry peers in the Specialty Retail industry. ORLY has an excellent profitability rating, 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
ORLY's Return On Assets of 15.32% is amongst the best of the industry. ORLY outperforms 91.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 36.27%, ORLY belongs to the top of the industry, outperforming 99.19% 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 11.91%.
| 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 95.94% of the companies in the same industry.
ORLY's Profit Margin has been stable in the last couple of years.
The Operating Margin of ORLY (19.22%) is better than 96.75% of its industry peers.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY's Gross Margin of 51.40% is amongst the best of the industry. ORLY outperforms 80.49% 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
ORLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ORLY has less shares outstanding
ORLY has less shares outstanding than it did 5 years ago.
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.38 indicates that ORLY is not in any danger for bankruptcy at the moment.
ORLY has a Altman-Z score of 4.38. This is amongst the best in the industry. ORLY outperforms 82.93% of its industry peers.
ORLY has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as ORLY would need 3.29 years to pay back of all of its debts.
ORLY has a better Debt to FCF ratio (3.29) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.38 |
ROIC/WACC3.94
WACC9.2%
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.
The Current ratio of ORLY (0.72) is worse than 88.62% of its industry peers.
A Quick Ratio of 0.11 indicates that ORLY may have some problems paying its short term obligations.
ORLY's Quick ratio of 0.11 is on the low side compared to the rest of the industry. ORLY is outperformed by 94.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.60% over the past year.
The Earnings Per Share has been growing by 17.85% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.15% 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)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 10.11% 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 5.63% yearly.
EPS Next Y10.13%
EPS Next 2Y11.29%
EPS Next 3Y11.15%
EPS Next 5Y10.11%
Revenue Next Year6.25%
Revenue Next 2Y6.35%
Revenue Next 3Y6.31%
Revenue Next 5Y5.63%
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
Based on the Price/Earnings ratio of 36.26, the valuation of ORLY can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ORLY is on the same level as its industry peers.
ORLY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.93.
A Price/Forward Earnings ratio of 30.25 indicates a quite expensive valuation of ORLY.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
When comparing the Price/Forward Earnings ratio of ORLY to the average of the S&P500 Index (35.31), we can say ORLY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 30.25 |
4.2 Price Multiples
ORLY's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 48.74 | ||
| EV/EBITDA | 24.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORLY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.58
PEG (5Y)2.03
EPS Next 2Y11.29%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.54
+0.04 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change325.74%
Ins Owners0.47%
Ins Owner Change-1.7%
Market Cap86.37B
Analysts78.89
Price Target107.61 (5.98%)
Short Float %1.69%
Short Ratio4.3
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)6.95%
PT rev (3m)-92.88%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)-93.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-93.38%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.26 | ||
| Fwd PE | 30.25 | ||
| P/S | 5.04 | ||
| P/FCF | 48.74 | ||
| P/OCF | 29.69 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.34 |
EPS(TTM)2.8
EY2.76%
EPS(NY)3.36
Fwd EY3.31%
FCF(TTM)2.08
FCFY2.05%
OCF(TTM)3.42
OCFY3.37%
SpS20.13
BVpS-1.45
TBVpS-2.56
PEG (NY)3.58
PEG (5Y)2.03
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 | 4.38 |
F-Score7
WACC9.2%
ROIC/WACC3.94
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 Y10.13%
EPS Next 2Y11.29%
EPS Next 3Y11.15%
EPS Next 5Y10.11%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%5.92%
Revenue Next Year6.25%
Revenue Next 2Y6.35%
Revenue Next 3Y6.31%
Revenue Next 5Y5.63%
EBIT growth 1Y1.84%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year24.02%
EBIT Next 3Y13.03%
EBIT Next 5Y9.37%
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%