O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
NASDAQ:ORLY - Nasdaq - US67103H1077 - Common Stock - Currency: USD
ORLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. ORLY scores excellent on profitability, but there are concerns on its financial health. ORLY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ORLY was profitable.
In the past year ORLY had a positive cash flow from operations.
In the past 5 years ORLY has always been profitable.
In the past 5 years ORLY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ORLY (15.55%) is better than 92.56% of its industry peers.
ORLY has a Return On Invested Capital of 37.37%. This is amongst the best in the industry. ORLY outperforms 99.17% of its industry peers.
ORLY had an Average Return On Invested Capital over the past 3 years of 40.10%. This is significantly above the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.55% | ||
| ROE | N/A | ||
| ROIC | 37.37% |
ROA(3y)16.72%
ROA(5y)16.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.1%
ROIC(5y)37.89%
1.3 Margins
Looking at the Profit Margin, with a value of 14.10%, ORLY belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
ORLY's Profit Margin has been stable in the last couple of years.
ORLY has a better Operating Margin (19.21%) than 96.69% of its industry peers.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY's Gross Margin of 51.23% is fine compared to the rest of the industry. ORLY outperforms 79.34% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.21% | ||
| PM (TTM) | 14.1% | ||
| GM | 51.23% |
OM growth 3Y-3.98%
OM growth 5Y0.56%
PM growth 3Y-4.2%
PM growth 5Y0.83%
GM growth 3Y-0.94%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ORLY is creating value.
Compared to 1 year ago, ORLY has less shares outstanding
Compared to 5 years ago, ORLY has less shares outstanding
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
ORLY has an Altman-Z score of 1.54. This is a bad value and indicates that ORLY is not financially healthy and even has some risk of bankruptcy.
ORLY has a worse Altman-Z score (1.54) than 64.46% of its industry peers.
The Debt to FCF ratio of ORLY is 2.77, which is a good value as it means it would take ORLY, 2.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.77, ORLY is doing good in the industry, outperforming 76.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 1.54 |
ROIC/WACC4.56
WACC8.19%
2.3 Liquidity
ORLY has a Current Ratio of 0.71. This is a bad value and indicates that ORLY is not financially healthy enough and could expect problems in meeting its short term obligations.
ORLY's Current ratio of 0.71 is on the low side compared to the rest of the industry. ORLY is outperformed by 89.26% of its industry peers.
ORLY has a Quick Ratio of 0.71. This is a bad value and indicates that ORLY is not financially healthy enough and could expect problems in meeting its short term obligations.
ORLY's Quick ratio of 0.10 is on the low side compared to the rest of the industry. ORLY is outperformed by 94.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
ORLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.57%.
ORLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.85% yearly.
The Revenue has been growing slightly by 4.90% in the past year.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
EPS 1Y (TTM)3.57%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%1.63%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%4.04%
3.2 Future
The Earnings Per Share is expected to grow by 10.11% on average over the next years. This is quite good.
Based on estimates for the next years, ORLY will show a small growth in Revenue. The Revenue will grow by 5.63% on average per year.
EPS Next Y10.13%
EPS Next 2Y11.29%
EPS Next 3Y11.15%
EPS Next 5Y10.11%
Revenue Next Year5.87%
Revenue Next 2Y6.14%
Revenue Next 3Y6.32%
Revenue Next 5Y5.63%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.58 indicates a quite expensive valuation of ORLY.
Compared to the rest of the industry, the Price/Earnings ratio of ORLY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.45. ORLY is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.21, ORLY can be considered very expensive at the moment.
ORLY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ORLY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 27.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORLY indicates a rather cheap valuation: ORLY is cheaper than 95.04% of the companies listed in the same industry.
97.52% of the companies in the same industry are more expensive than ORLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.55 | ||
| EV/EBITDA | 2.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORLY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.32
PEG (5Y)1.88
EPS Next 2Y11.29%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
ORLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.33
+2.01 (+2.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.53%
Inst Owner Change2.59%
Ins Owners0.47%
Ins Owner Change-0.79%
Market Cap5.20B
Analysts78.89
Price Target100.62 (10.17%)
Short Float %N/A
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.74%
Min EPS beat(2)-7.04%
Max EPS beat(2)-4.44%
EPS beat(4)0
Avg EPS beat(4)-5.12%
Min EPS beat(4)-7.04%
Max EPS beat(4)-3.15%
EPS beat(8)1
Avg EPS beat(8)-2.97%
EPS beat(12)4
Avg EPS beat(12)-1.22%
EPS beat(16)7
Avg EPS beat(16)1.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.48%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-1.77%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)7
Avg Revenue beat(16)-0.24%
PT rev (1m)-93.34%
PT rev (3m)-93.1%
EPS NQ rev (1m)-93.34%
EPS NQ rev (3m)-93.33%
EPS NY rev (1m)-93.33%
EPS NY rev (3m)-93.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 27.21 | ||
| P/S | 0.31 | ||
| P/FCF | 2.55 | ||
| P/OCF | 1.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.87 |
EPS(TTM)2.72
EY2.98%
EPS(NY)3.36
Fwd EY3.68%
FCF(TTM)35.78
FCFY39.18%
OCF(TTM)54.4
OCFY59.57%
SpS296
BVpS-23.82
TBVpS-40.19
PEG (NY)3.32
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.55% | ||
| ROE | N/A | ||
| ROCE | 47.77% | ||
| ROIC | 37.37% | ||
| ROICexc | 38.45% | ||
| ROICexgc | 44.8% | ||
| OM | 19.21% | ||
| PM (TTM) | 14.1% | ||
| GM | 51.23% | ||
| FCFM | 12.09% |
ROA(3y)16.72%
ROA(5y)16.75%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.1%
ROIC(5y)37.89%
ROICexc(3y)41.26%
ROICexc(5y)39.58%
ROICexgc(3y)49.25%
ROICexgc(5y)47.31%
ROCE(3y)51.25%
ROCE(5y)48.43%
ROICexcg growth 3Y-2.69%
ROICexcg growth 5Y10.22%
ROICexc growth 3Y-2.08%
ROICexc growth 5Y10.15%
OM growth 3Y-3.98%
OM growth 5Y0.56%
PM growth 3Y-4.2%
PM growth 5Y0.83%
GM growth 3Y-0.94%
GM growth 5Y-0.75%
F-Score5
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 223.64% | ||
| Cap/Sales | 6.29% | ||
| Interest Coverage | 15.15 | ||
| Cash Conversion | 83.47% | ||
| Profit Quality | 85.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.54 |
F-Score5
WACC8.19%
ROIC/WACC4.56
Cap/Depr(3y)208.32%
Cap/Depr(5y)181.58%
Cap/Sales(3y)5.47%
Cap/Sales(5y)4.75%
Profit Quality(3y)96.76%
Profit Quality(5y)110.66%
High Growth Momentum
Growth
EPS 1Y (TTM)3.57%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%1.63%
EPS Next Y10.13%
EPS Next 2Y11.29%
EPS Next 3Y11.15%
EPS Next 5Y10.11%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%4.04%
Revenue Next Year5.87%
Revenue Next 2Y6.14%
Revenue Next 3Y6.32%
Revenue Next 5Y5.63%
EBIT growth 1Y0.56%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year22.57%
EBIT Next 3Y12.39%
EBIT Next 5Y9.37%
FCF growth 1Y-18.08%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y-2.26%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%