O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
USA - NASDAQ:ORLY - US67103H1077 - Common Stock
96.3 USD
+0.51 (+0.53%)
97.42 USD
+1.12 (+1.16%)
We assign a fundamental rating of 5 out of 10 to ORLY. ORLY was compared to 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 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.
In the past year ORLY had a positive cash flow from operations.
ORLY had positive earnings in each of the past 5 years.
Each year in the past 5 years ORLY had a positive operating cash flow.
1.2 Ratios
ORLY has a Return On Assets of 15.26%. This is amongst the best in the industry. ORLY outperforms 92.56% of its industry peers.
ORLY's Return On Invested Capital of 34.84% is amongst the best of the industry. ORLY outperforms 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 11.81%.
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 Profit Margin of 14.22%. This is amongst the best in the industry. ORLY outperforms 95.87% of its industry peers.
In the last couple of years the Profit Margin of ORLY has remained more or less at the same level.
Looking at the Operating Margin, with a value of 19.30%, ORLY belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
In the last couple of years the Operating Margin of ORLY has remained more or less at the same level.
The Gross Margin of ORLY (51.47%) is better than 80.99% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ORLY is creating value.
The number of shares outstanding for ORLY has been reduced compared to 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
An Altman-Z score of 4.25 indicates that ORLY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.25, ORLY belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
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 69.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.25 |
ROIC/WACC3.81
WACC9.15%
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 88.43% 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
The Earnings Per Share has been growing slightly by 7.12% 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 17.85% on average per year.
ORLY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.19%.
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 9.90% on average over the next years. This is quite good.
Based on estimates for the next years, ORLY will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y10.83%
EPS Next 2Y11.48%
EPS Next 3Y11.15%
EPS Next 5Y9.9%
Revenue Next Year6.38%
Revenue Next 2Y6.46%
Revenue Next 3Y6.35%
Revenue Next 5Y5.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 33.32 indicates a quite expensive valuation of ORLY.
ORLY's Price/Earnings ratio is in line with the industry average.
ORLY is valuated rather expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.59 indicates a quite expensive valuation of ORLY.
ORLY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.87. ORLY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 28.59 |
4.2 Price Multiples
61.98% of the companies in the same industry are cheaper than ORLY, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ORLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.29 | ||
| EV/EBITDA | 22.6 |
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)3.08
PEG (5Y)1.87
EPS Next 2Y11.48%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.3
+0.51 (+0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change0.37%
Ins Owners0.47%
Ins Owner Change-0.84%
Market Cap81.71B
Revenue(TTM)17.46B
Net Income(TTM)2.48B
Analysts80.54
Price Target112.39 (16.71%)
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)1.16%
PT rev (3m)11.32%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.63%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 28.59 | ||
| P/S | 4.68 | ||
| P/FCF | 52.29 | ||
| P/OCF | 29.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.6 |
EPS(TTM)2.89
EY3%
EPS(NY)3.37
Fwd EY3.5%
FCF(TTM)1.84
FCFY1.91%
OCF(TTM)3.24
OCFY3.37%
SpS20.58
BVpS-1.05
TBVpS-2.17
PEG (NY)3.08
PEG (5Y)1.87
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 | 4.25 |
F-Score7
WACC9.15%
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 Y10.83%
EPS Next 2Y11.48%
EPS Next 3Y11.15%
EPS Next 5Y9.9%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%7.82%
Revenue Next Year6.38%
Revenue Next 2Y6.46%
Revenue Next 3Y6.35%
Revenue Next 5Y5.71%
EBIT growth 1Y4.31%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year24.08%
EBIT Next 3Y13.01%
EBIT Next 5Y9.52%
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 10.83% in the next year.