O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
NASDAQ:ORLY - Nasdaq - US67103H1077 - Common Stock
Overall ORLY gets a fundamental rating of 5 out of 10. We evaluated ORLY against 119 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.
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
The Return On Assets of ORLY (16.38%) is better than 93.97% of its industry peers.
ORLY has a Return On Invested Capital of 39.36%. This is amongst the best in the industry. ORLY outperforms 99.14% of its industry peers.
ORLY had an Average Return On Invested Capital over the past 3 years of 40.15%. This is significantly above the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | N/A | ||
| ROIC | 39.36% |
ROA(3y)17.53%
ROA(5y)16.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.15%
ROIC(5y)34.83%
1.3 Margins
With an excellent Profit Margin value of 14.52%, ORLY belongs to the best of the industry, outperforming 97.41% of the companies in the same industry.
ORLY's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 19.65%, ORLY belongs to the top of the industry, outperforming 97.41% of the companies in the same industry.
ORLY's Operating Margin has been stable in the last couple of years.
The Gross Margin of ORLY (51.21%) is better 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 | 19.65% | ||
| PM (TTM) | 14.52% | ||
| GM | 51.21% |
OM growth 3Y-1.14%
OM growth 5Y1.16%
PM growth 3Y-0.57%
PM growth 5Y1.34%
GM growth 3Y-0.76%
GM growth 5Y-0.61%
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.
Compared to 5 years ago, ORLY has less shares outstanding
The debt/assets ratio for ORLY is higher compared to a year ago.
2.2 Solvency
ORLY has an Altman-Z score of 4.01. This indicates that ORLY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.01, ORLY belongs to the best of the industry, outperforming 81.90% of the companies in the same industry.
The Debt to FCF ratio of ORLY is 2.74, which is a good value as it means it would take ORLY, 2.74 years of fcf income to pay off all of its debts.
ORLY has a better Debt to FCF ratio (2.74) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.01 |
ROIC/WACC3.92
WACC10.04%
2.3 Liquidity
ORLY has a Current Ratio of 0.70. 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 has a Current ratio of 0.70. This is amonst the worse of the industry: ORLY underperforms 93.10% of its industry peers.
A Quick Ratio of 0.10 indicates that ORLY may have some problems paying its short term obligations.
ORLY has a worse Quick ratio (0.10) than 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.51% over the past year.
Measured over the past years, ORLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.03% on average per year.
The Revenue has been growing slightly by 5.25% in the past year.
ORLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.64% yearly.
EPS 1Y (TTM)7.51%
EPS 3Y17.8%
EPS 5Y19.03%
EPS Q2Q%6.39%
Revenue 1Y (TTM)5.25%
Revenue growth 3Y10.87%
Revenue growth 5Y10.64%
Sales Q2Q%3.83%
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 10.73% yearly.
The Revenue is expected to grow by 5.41% on average over the next years.
EPS Next Y8.36%
EPS Next 2Y9.15%
EPS Next 3Y10.17%
EPS Next 5Y10.73%
Revenue Next Year5.11%
Revenue Next 2Y5.31%
Revenue Next 3Y5.54%
Revenue Next 5Y5.41%
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
ORLY is valuated quite expensively with a Price/Earnings ratio of 30.70.
The rest of the industry has a similar Price/Earnings ratio as ORLY.
ORLY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.07, the valuation of ORLY can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, ORLY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.7 | ||
| Fwd PE | 27.07 |
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 61.21% of the companies in the same industry.
ORLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.62 | ||
| EV/EBITDA | 20.5 |
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)3.67
PEG (5Y)1.61
EPS Next 2Y9.15%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
ORLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
O'REILLY AUTOMOTIVE INC
NASDAQ:ORLY (1/21/2025, 10:28:03 PM)
After market: 1241.08 0 (0%)1241.08
+24.29 (+2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.81%
Inst Owner Change-1.75%
Ins Owners0.52%
Ins Owner Change-4.73%
Market Cap71.65B
Analysts77.78
Price Target1328.18 (7.02%)
Short Float %1.81%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-4.49%
Min EPS beat(2)-5.84%
Max EPS beat(2)-3.15%
EPS beat(4)0
Avg EPS beat(4)-3.19%
Min EPS beat(4)-5.84%
Max EPS beat(4)-0.96%
EPS beat(8)3
Avg EPS beat(8)-0.62%
EPS beat(12)5
Avg EPS beat(12)1.22%
EPS beat(16)9
Avg EPS beat(16)3.89%
Revenue beat(2)0
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)-2.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-2.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)5
Avg Revenue beat(12)-0.74%
Revenue beat(16)8
Avg Revenue beat(16)0.34%
PT rev (1m)0.36%
PT rev (3m)8.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.7 | ||
| Fwd PE | 27.07 | ||
| P/S | 4.36 | ||
| P/FCF | 36.62 | ||
| P/OCF | 24.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.5 |
EPS(TTM)40.42
EY3.26%
EPS(NY)45.85
Fwd EY3.69%
FCF(TTM)33.89
FCFY2.73%
OCF(TTM)50.95
OCFY4.11%
SpS284.86
BVpS-24.93
TBVpS-42.2
PEG (NY)3.67
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | N/A | ||
| ROCE | 50.55% | ||
| ROIC | 39.36% | ||
| ROICexc | 40.08% | ||
| ROICexgc | 47.66% | ||
| OM | 19.65% | ||
| PM (TTM) | 14.52% | ||
| GM | 51.21% | ||
| FCFM | 11.9% |
ROA(3y)17.53%
ROA(5y)16.14%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.15%
ROIC(5y)34.83%
ROICexc(3y)41.92%
ROICexc(5y)36.4%
ROICexgc(3y)50.33%
ROICexgc(5y)43.52%
ROCE(3y)51.57%
ROCE(5y)44.74%
ROICexcg growth 3Y9.22%
ROICexcg growth 5Y2.7%
ROICexc growth 3Y9.21%
ROICexc growth 5Y3.73%
OM growth 3Y-1.14%
OM growth 5Y1.16%
PM growth 3Y-0.57%
PM growth 5Y1.34%
GM growth 3Y-0.76%
GM growth 5Y-0.61%
F-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 218.06% | ||
| Cap/Sales | 5.99% | ||
| Interest Coverage | 16.02 | ||
| Cash Conversion | 79.87% | ||
| Profit Quality | 81.92% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 4.01 |
F-Score7
WACC10.04%
ROIC/WACC3.92
Cap/Depr(3y)179.44%
Cap/Depr(5y)183.64%
Cap/Sales(3y)4.53%
Cap/Sales(5y)4.76%
Profit Quality(3y)111.02%
Profit Quality(5y)109.21%
High Growth Momentum
Growth
EPS 1Y (TTM)7.51%
EPS 3Y17.8%
EPS 5Y19.03%
EPS Q2Q%6.39%
EPS Next Y8.36%
EPS Next 2Y9.15%
EPS Next 3Y10.17%
EPS Next 5Y10.73%
Revenue 1Y (TTM)5.25%
Revenue growth 3Y10.87%
Revenue growth 5Y10.64%
Sales Q2Q%3.83%
Revenue Next Year5.11%
Revenue Next 2Y5.31%
Revenue Next 3Y5.54%
Revenue Next 5Y5.41%
EBIT growth 1Y2.59%
EBIT growth 3Y9.6%
EBIT growth 5Y11.93%
EBIT Next Year16.32%
EBIT Next 3Y9.63%
EBIT Next 5Y7.87%
FCF growth 1Y-21.87%
FCF growth 3Y-5.08%
FCF growth 5Y10.64%
OCF growth 1Y-1.79%
OCF growth 3Y2.27%
OCF growth 5Y11.92%