99.2 USD
+0.32 (+0.32%)
Overall ORLY gets a fundamental rating of 5 out of 10. We evaluated ORLY against 121 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 valied quite expensively at the moment, while it does show a decent 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.
- ORLY had positive earnings in each of the past 5 years.
- ORLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ORLY has a better Return On Assets (15.26%) than 93.39% of its industry peers.
- ORLY has a Return On Invested Capital of 34.84%. 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 12.37%.
- The 3 year average ROIC (40.10%) for ORLY is well above the current ROIC(34.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.26% | ||
| ROE | N/A | ||
| ROIC | 34.84% |
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
- ORLY has a better Profit Margin (14.22%) than 96.69% of its industry peers.
- ORLY's Profit Margin has been stable in the last couple of years.
- ORLY has a Operating Margin of 19.30%. This is amongst the best in the industry. ORLY outperforms 96.69% of its industry peers.
- ORLY's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 51.47%, ORLY is in the better half of the industry, outperforming 78.51% of the companies in the same industry.
- In the last couple of years the Gross Margin of ORLY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.3% | ||
| PM (TTM) | 14.22% | ||
| GM | 51.47% |
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
- ORLY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ORLY has less shares outstanding
- ORLY has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ORLY has been reduced compared to a year ago.
2.2 Solvency
- ORLY has an Altman-Z score of 4.31. This indicates that ORLY is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ORLY (4.31) is better than 84.30% of its industry peers.
- The Debt to FCF ratio of ORLY is 3.79, which is a good value as it means it would take ORLY, 3.79 years of fcf income to pay off all of its debts.
- ORLY has a Debt to FCF ratio of 3.79. This is in the better half of the industry: ORLY outperforms 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.31 |
ROIC/WACC3.63
WACC9.61%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that ORLY may have some problems paying its short term obligations.
- ORLY's Current ratio of 0.76 is on the low side compared to the rest of the industry. ORLY is outperformed by 86.78% of its industry peers.
- A Quick Ratio of 0.11 indicates that ORLY may have some problems paying its short term obligations.
- With a Quick ratio value of 0.11, ORLY is not doing good in the industry: 95.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
- ORLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.12%.
- ORLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.85% yearly.
- ORLY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.19%.
- ORLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
EPS 1Y (TTM)7.12%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%11.74%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%7.82%
3.2 Future
- ORLY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.79% yearly.
- Based on estimates for the next years, ORLY will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
EPS Next Y11.89%
EPS Next 2Y11.65%
EPS Next 3Y11.27%
EPS Next 5Y9.79%
Revenue Next Year6.6%
Revenue Next 2Y6.7%
Revenue Next 3Y6.54%
Revenue Next 5Y5.86%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- Based on the Price/Earnings ratio of 34.33, the valuation of ORLY can be described as expensive.
- ORLY's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.30. ORLY is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 29.36 indicates a quite expensive valuation of ORLY.
- ORLY's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of ORLY to the average of the S&P500 Index (24.32), we can say ORLY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.33 | ||
| Fwd PE | 29.36 |
4.2 Price Multiples
- ORLY's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ORLY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.58 | ||
| EV/EBITDA | 23.05 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)1.92
EPS Next 2Y11.65%
EPS Next 3Y11.27%
5. Dividend
5.1 Amount
- No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
O'REILLY AUTOMOTIVE INC / ORLY FAQ
What is the fundamental rating for ORLY stock?
ChartMill assigns a fundamental rating of 5 / 10 to ORLY.
Can you provide the valuation status for O'REILLY AUTOMOTIVE INC?
ChartMill assigns a valuation rating of 2 / 10 to O'REILLY AUTOMOTIVE INC (ORLY). This can be considered as Overvalued.
What is the profitability of ORLY stock?
O'REILLY AUTOMOTIVE INC (ORLY) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for ORLY stock?
The Earnings per Share (EPS) of O'REILLY AUTOMOTIVE INC (ORLY) is expected to grow by 11.89% in the next year.