Reasonable Growth, Debt Levels, and a High ROIC Make O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) Appealing to Quality Investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) is suited for quality investing. Investors should of course do their own research, but we spotted O'REILLY AUTOMOTIVE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into O'REILLY AUTOMOTIVE INC's Quality Metrics.

• O'REILLY AUTOMOTIVE INC has achieved substantial revenue growth over the past 5 years, with a 9.92% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 51.62%, O'REILLY AUTOMOTIVE INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• O'REILLY AUTOMOTIVE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.14, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 110.0%, O'REILLY AUTOMOTIVE INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of O'REILLY AUTOMOTIVE INC has been remarkable, with 11.42% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• O'REILLY AUTOMOTIVE INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NASDAQ:ORLY?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, ORLY scores 5 out of 10 in our fundamental rating. ORLY was compared to 132 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 quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of ORLY

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.