Why NASDAQ:ORLY qualifies as a quality stock.

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.

Looking into the quality metrics of O'REILLY AUTOMOTIVE INC

• 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 47.66% 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 2.74, 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.
• With a favorable Profit Quality (5-year) ratio of 109.0%, O'REILLY AUTOMOTIVE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• O'REILLY AUTOMOTIVE INC has consistently achieved strong EBIT growth over the past 5 years, with a 11.93% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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?

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.

We assign a fundamental rating of 5 out of 10 to ORLY. ORLY was compared to 122 industry peers in the Specialty Retail industry. While ORLY has a great profitability rating, 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.

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

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.