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 shown strong performance in revenue growth over the past 5 years, with a 10.64% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• O'REILLY AUTOMOTIVE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 49.28% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of O'REILLY AUTOMOTIVE INC stands at 2.75, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of O'REILLY AUTOMOTIVE INC stands at 109.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• The 5-year EBIT growth of O'REILLY AUTOMOTIVE INC has been remarkable, with 11.91% 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 superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NASDAQ:ORLY telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, ORLY scores 5 out of 10 in our fundamental rating. ORLY was compared to 129 industry peers in the Specialty Retail industry. While ORLY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ORLY is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of ORLY contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.