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 has an excellent profitability rating, but 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
ORLY had positive earnings in the past year.
In the past year ORLY had a positive cash flow from operations.
Each year in the past 5 years ORLY has been profitable.
ORLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ORLY has a better Return On Assets (16.02%) than 92.56% of its industry peers.
ORLY has a Return On Invested Capital of 38.48%. 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 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | N/A | ||
| ROIC | 38.48% |
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 Profit Margin of 14.28%. This is amongst the best in the industry. ORLY outperforms 95.87% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
The Operating Margin of ORLY (19.46%) is better than 95.04% of its industry peers.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY has a better Gross Margin (51.20%) than 80.17% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.46% | ||
| PM (TTM) | 14.28% | ||
| GM | 51.2% |
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.
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
ORLY has an Altman-Z score of 4.32. This indicates that ORLY is financially healthy and has little risk of bankruptcy at the moment.
ORLY's Altman-Z score of 4.32 is amongst the best of the industry. ORLY outperforms 86.78% of its industry peers.
ORLY has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as ORLY would need 2.72 years to pay back of all of its debts.
ORLY has a better Debt to FCF ratio (2.72) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.32 |
ROIC/WACC4.31
WACC8.92%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ORLY may have some problems paying 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 88.43% of its industry peers.
A Quick Ratio of 0.09 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a worse Quick ratio (0.09) than 95.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.65% 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.
Looking at the last year, ORLY shows a small growth in Revenue. The Revenue has grown by 5.67% in the last 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)5.65%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%2.59%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%6.88%
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 10.46% yearly.
ORLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y10.91%
EPS Next 2Y11.54%
EPS Next 3Y11.68%
EPS Next 5Y10.46%
Revenue Next Year6.02%
Revenue Next 2Y6.12%
Revenue Next 3Y6.23%
Revenue Next 5Y5.7%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ORLY is valuated quite expensively with a Price/Earnings ratio of 34.21.
The rest of the industry has a similar Price/Earnings ratio as ORLY.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ORLY is valued a bit more expensive.
ORLY is valuated quite expensively with a Price/Forward Earnings ratio of 30.84.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
ORLY's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.21 | ||
| Fwd PE | 30.84 |
4.2 Price Multiples
ORLY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ORLY is more expensive than 62.81% 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 | 39.29 | ||
| EV/EBITDA | 22.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORLY does not grow enough to justify the current Price/Earnings ratio.
ORLY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)1.92
EPS Next 2Y11.54%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1390.9
+26.54 (+1.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.91%
Inst Owner Change0%
Ins Owners0.52%
Ins Owner Change-3.06%
Market Cap79.62B
Analysts78.89
Price Target1459.24 (4.91%)
Short Float %1.7%
Short Ratio2.77
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)-3.8%
Min EPS beat(2)-4.44%
Max EPS beat(2)-3.15%
EPS beat(4)0
Avg EPS beat(4)-4.06%
Min EPS beat(4)-5.84%
Max EPS beat(4)-2.8%
EPS beat(8)2
Avg EPS beat(8)-1.91%
EPS beat(12)4
Avg EPS beat(12)-1.13%
EPS beat(16)8
Avg EPS beat(16)3.42%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-0.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)0.12%
PT rev (3m)9.87%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.21 | ||
| Fwd PE | 30.84 | ||
| P/S | 4.76 | ||
| P/FCF | 39.29 | ||
| P/OCF | 26.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.89 |
EPS(TTM)40.66
EY2.92%
EPS(NY)45.1
Fwd EY3.24%
FCF(TTM)35.4
FCFY2.54%
OCF(TTM)53.28
OCFY3.83%
SpS291.9
BVpS-23.95
TBVpS-40.2
PEG (NY)3.13
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | N/A | ||
| ROCE | 49.18% | ||
| ROIC | 38.48% | ||
| ROICexc | 39.25% | ||
| ROICexgc | 45.83% | ||
| OM | 19.46% | ||
| PM (TTM) | 14.28% | ||
| GM | 51.2% | ||
| FCFM | 12.13% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 221.56% | ||
| Cap/Sales | 6.12% | ||
| Interest Coverage | 15.55 | ||
| Cash Conversion | 82.13% | ||
| Profit Quality | 84.9% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 4.32 |
F-Score5
WACC8.92%
ROIC/WACC4.31
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)5.65%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%2.59%
EPS Next Y10.91%
EPS Next 2Y11.54%
EPS Next 3Y11.68%
EPS Next 5Y10.46%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%6.88%
Revenue Next Year6.02%
Revenue Next 2Y6.12%
Revenue Next 3Y6.23%
Revenue Next 5Y5.7%
EBIT growth 1Y2.03%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year23.28%
EBIT Next 3Y13.01%
EBIT Next 5Y9.54%
FCF growth 1Y-0.08%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y0.51%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%