Is O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) a Strong Candidate for Quality Investing?

In this article we will dive into O'REILLY AUTOMOTIVE INC (NASDAQ:ORLY) as a possible candidate for quality investing. Investors should always do their own research, but we noticed O'REILLY AUTOMOTIVE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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

• The 5-year revenue growth of O'REILLY AUTOMOTIVE INC has been remarkable, with 10.64% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• O'REILLY AUTOMOTIVE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 48.01% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 2.65, O'REILLY AUTOMOTIVE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• O'REILLY AUTOMOTIVE INC exhibits impressive Profit Quality (5-year) with a 109.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• O'REILLY AUTOMOTIVE INC has experienced impressive EBIT growth over the past 5 years, with 11.93% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• O'REILLY AUTOMOTIVE INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

ORLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 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.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.