O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
USA - NASDAQ:ORLY - US67103H1077 - Common Stock
98.09 USD
-1.13 (-1.14%)
97.9 USD
-0.19 (-0.19%)
Overall ORLY gets a fundamental rating of 5 out of 10. We evaluated ORLY against 122 industry peers in the Specialty Retail industry. ORLY has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, ORLY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ORLY had positive earnings in the past year.
ORLY had a positive operating cash flow in the past year.
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
ORLY's Return On Assets of 15.26% is amongst the best of the industry. ORLY outperforms 92.62% of its industry peers.
ORLY has a Return On Invested Capital of 34.84%. This is amongst the best in the industry. ORLY outperforms 99.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORLY is significantly above the industry average of 11.80%.
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
The Profit Margin of ORLY (14.22%) is better than 95.90% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
The Operating Margin of ORLY (19.30%) is better than 96.72% of its industry peers.
In the last couple of years the Operating Margin of ORLY has remained more or less at the same level.
ORLY's Gross Margin of 51.47% is amongst the best of the industry. ORLY outperforms 80.33% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| 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.
ORLY has less shares outstanding than it did 1 year ago.
ORLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ORLY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.33 indicates that ORLY is not in any danger for bankruptcy at the moment.
ORLY has a better Altman-Z score (4.33) than 83.61% 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.
The Debt to FCF ratio of ORLY (3.79) is better than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.33 |
ROIC/WACC3.81
WACC9.14%
2.3 Liquidity
ORLY has a Current Ratio of 0.76. 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 0.76 is on the low side compared to the rest of the industry. ORLY is outperformed by 87.70% of its industry peers.
A Quick Ratio of 0.11 indicates that ORLY may have some problems paying its short term obligations.
ORLY's Quick ratio of 0.11 is on the low side compared to the rest of the industry. ORLY is outperformed by 95.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.12% over the past year.
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 6.19% in the past year.
Measured over the past years, ORLY shows a quite strong growth in Revenue. The Revenue has been growing by 10.48% on average per year.
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
The Earnings Per Share is expected to grow by 9.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.78% on average over the next years.
EPS Next Y11.95%
EPS Next 2Y11.73%
EPS Next 3Y11.33%
EPS Next 5Y9.72%
Revenue Next Year6.59%
Revenue Next 2Y6.68%
Revenue Next 3Y6.5%
Revenue Next 5Y5.78%
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 33.94, the valuation of ORLY can be described as expensive.
ORLY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ORLY to the average of the S&P500 Index (26.34), we can say ORLY is valued slightly more expensively.
The Price/Forward Earnings ratio is 28.99, which means the current valuation is very expensive for ORLY.
ORLY's Price/Forward Earnings ratio is in line with the industry average.
ORLY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORLY is valued a bit more expensive than 62.30% of the companies in the same industry.
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 | 53.26 | ||
| EV/EBITDA | 23.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ORLY may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.9
EPS Next 2Y11.73%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
ORLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
98.09
-1.13 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change0.9%
Ins Owners0.47%
Ins Owner Change-0.83%
Market Cap83.23B
Revenue(TTM)17.46B
Net Income(TTM)2.48B
Analysts80.54
Price Target112.39 (14.58%)
Short Float %1.37%
Short Ratio2.47
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)1
Avg EPS beat(2)-0.97%
Min EPS beat(2)-1.97%
Max EPS beat(2)0.02%
EPS beat(4)1
Avg EPS beat(4)-3.36%
Min EPS beat(4)-7.04%
Max EPS beat(4)0.02%
EPS beat(8)1
Avg EPS beat(8)-3.27%
EPS beat(12)4
Avg EPS beat(12)-1.53%
EPS beat(16)6
Avg EPS beat(16)0.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-2.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.23%
Revenue beat(16)5
Avg Revenue beat(16)-1.02%
PT rev (1m)2.34%
PT rev (3m)4.44%
EPS NQ rev (1m)1.34%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.94 | ||
| Fwd PE | 28.99 | ||
| P/S | 4.77 | ||
| P/FCF | 53.26 | ||
| P/OCF | 30.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.24 |
EPS(TTM)2.89
EY2.95%
EPS(NY)3.38
Fwd EY3.45%
FCF(TTM)1.84
FCFY1.88%
OCF(TTM)3.24
OCFY3.31%
SpS20.58
BVpS-1.05
TBVpS-2.17
PEG (NY)2.84
PEG (5Y)1.9
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.26% | ||
| ROE | N/A | ||
| ROCE | 44.53% | ||
| ROIC | 34.84% | ||
| ROICexc | 35.8% | ||
| ROICexgc | 41.08% | ||
| OM | 19.3% | ||
| PM (TTM) | 14.22% | ||
| GM | 51.47% | ||
| FCFM | 8.95% |
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%
ROICexgc growth 3Y-2.69%
ROICexgc 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-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 238.82% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 71.15% | ||
| Profit Quality | 62.91% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | 4.33 |
F-Score7
WACC9.14%
ROIC/WACC3.81
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)7.12%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%11.74%
EPS Next Y11.95%
EPS Next 2Y11.73%
EPS Next 3Y11.33%
EPS Next 5Y9.72%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%7.82%
Revenue Next Year6.59%
Revenue Next 2Y6.68%
Revenue Next 3Y6.5%
Revenue Next 5Y5.78%
EBIT growth 1Y4.31%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year24.08%
EBIT Next 3Y13.01%
EBIT Next 5Y9.47%
FCF growth 1Y-34.46%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y-16.9%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%
O'REILLY AUTOMOTIVE INC / ORLY FAQ
What is the fundamental rating for ORLY stock?
ChartMill assigns a fundamental rating of 5 / 10 to ORLY.
What is the valuation status for ORLY stock?
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.
What is the financial health of O'REILLY AUTOMOTIVE INC (ORLY) stock?
The financial health rating of O'REILLY AUTOMOTIVE INC (ORLY) is 5 / 10.
What is the expected EPS growth for O'REILLY AUTOMOTIVE INC (ORLY) stock?
The Earnings per Share (EPS) of O'REILLY AUTOMOTIVE INC (ORLY) is expected to grow by 11.95% in the next year.