O'REILLY AUTOMOTIVE INC (ORLY)
US67103H1077 - Common Stock
We assign a fundamental rating of 5 out of 10 to ORLY. ORLY was compared to 122 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 quite expensive at the moment. It does show a decent growth rate.
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.
ORLY had positive earnings in each of the past 5 years.
In the past 5 years ORLY always reported a positive cash flow from operatings.
1.2 Ratios
ORLY has a better Return On Assets (16.38%) than 94.21% of its industry peers.
ORLY has a better Return On Invested Capital (39.36%) than 99.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORLY is significantly above the industry average of 12.03%.
| 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
ORLY has a better Profit Margin (14.52%) than 97.52% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
ORLY has a Operating Margin of 19.65%. This is amongst the best in the industry. ORLY outperforms 97.52% of its industry peers.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY has a better Gross Margin (51.21%) than 79.34% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.65% | ||
| 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
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
The number of shares outstanding for ORLY has been reduced compared to 5 years ago.
Compared to 1 year ago, ORLY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.00 indicates that ORLY is not in any danger for bankruptcy at the moment.
ORLY has a Altman-Z score of 4.00. This is amongst the best in the industry. ORLY outperforms 82.64% of its industry peers.
ORLY has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as ORLY would need 2.74 years to pay back of all of its debts.
ORLY has a better Debt to FCF ratio (2.74) than 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4 |
ROIC/WACC3.91
WACC10.06%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ORLY may have some problems paying its short term obligations.
The Current ratio of ORLY (0.70) is worse than 92.56% of its industry peers.
ORLY has a Quick 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's Quick ratio of 0.10 is on the low side compared to the rest of the industry. ORLY is outperformed by 95.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| 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 7.51%.
The Earnings Per Share has been growing by 19.03% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.25% in the past year.
Measured over the past years, ORLY shows a quite strong growth in Revenue. The Revenue has been growing by 10.64% on average per year.
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
The Earnings Per Share is expected to grow by 10.73% on average over the next years. This is quite good.
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 3Y10.15%
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 30.16.
ORLY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ORLY is valued at the same level.
With a Price/Forward Earnings ratio of 26.59, ORLY can be considered very expensive at the moment.
ORLY's Price/Forward Earnings is on the same level as the industry average.
ORLY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 26.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORLY is on the same level as its industry peers.
ORLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.98 | ||
| EV/EBITDA | 20.46 |
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)3.61
PEG (5Y)1.59
EPS Next 2Y9.15%
EPS Next 3Y10.15%
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 (12/20/2024, 8:00:02 PM)
After market: 1219.11 0 (0%)1219.11
+4.72 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.81%
Inst Owner Change1.49%
Ins Owners0.52%
Ins Owner Change-4.73%
Market Cap70.38B
Analysts77.71
Price Target1323.43 (8.56%)
Short Float %1.41%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-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)4.42%
PT rev (3m)9.29%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 26.59 | ||
| P/S | 4.28 | ||
| P/FCF | 35.98 | ||
| P/OCF | 23.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.46 |
EPS(TTM)40.42
EY3.32%
EPS(NY)45.85
Fwd EY3.76%
FCF(TTM)33.89
FCFY2.78%
OCF(TTM)50.95
OCFY4.18%
SpS284.86
BVpS-24.93
TBVpS-42.2
PEG (NY)3.61
PEG (5Y)1.59
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 |
F-Score7
WACC10.06%
ROIC/WACC3.91
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 3Y10.15%
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%