Why O'REILLY AUTOMOTIVE INC (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.

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.
• The ROIC excluding cash and goodwill of O'REILLY AUTOMOTIVE INC stands at 47.66%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• O'REILLY AUTOMOTIVE INC maintains a healthy Debt/Free Cash Flow Ratio of 2.74, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 109.0%, 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.
• 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.
• The EBIT 5-year growth of O'REILLY AUTOMOTIVE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NASDAQ:ORLY

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall ORLY gets a fundamental rating of 5 out of 10. We evaluated ORLY against 119 industry peers in the Specialty Retail industry. ORLY scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ORLY is valued expensive at the moment.

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.