O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
USA - NASDAQ:ORLY - US67103H1077 - Common Stock
98.33 USD
-1.23 (-1.24%)
98.25 USD
-0.08 (-0.08%)
Taking everything into account, ORLY scores 5 out of 10 in our fundamental rating. 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.
In the past year ORLY had a positive cash flow from operations.
Each year in the past 5 years ORLY has been profitable.
In the past 5 years ORLY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.26%, ORLY belongs to the top of the industry, outperforming 92.62% of the companies in the same industry.
ORLY has a better Return On Invested Capital (34.84%) than 99.18% 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 11.81%.
The last Return On Invested Capital (34.84%) for ORLY is well below the 3 year average (40.10%), which needs to be investigated, but indicates that ORLY had better years and this may not be a problem.
| 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.
Looking at the Operating Margin, with a value of 19.30%, ORLY belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY has a Gross Margin of 51.47%. This is in the better half of the industry: ORLY outperforms 79.51% 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.
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.
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.31 indicates that ORLY is not in any danger for bankruptcy at the moment.
ORLY has a better Altman-Z score (4.31) than 84.43% 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.
ORLY's Debt to FCF ratio of 3.79 is fine compared to the rest of the industry. ORLY outperforms 71.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 4.31 |
ROIC/WACC3.84
WACC9.08%
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 has a worse Quick ratio (0.11) than 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.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
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
Based on estimates for the next years, ORLY will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.72% on average per year.
Based on estimates for the next years, ORLY will show a small growth in Revenue. The Revenue will grow by 5.78% on average per year.
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
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 34.02 indicates a quite expensive valuation of ORLY.
Compared to the rest of the industry, the Price/Earnings ratio of ORLY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ORLY to the average of the S&P500 Index (25.51), we can say ORLY is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 29.06, the valuation of ORLY can be described as expensive.
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 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.02 | ||
| Fwd PE | 29.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORLY is valued a bit more expensive than the industry average as 62.30% of the companies are valued more cheaply.
ORLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.39 | ||
| EV/EBITDA | 23.04 |
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.
The excellent profitability rating of ORLY may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)1.91
EPS Next 2Y11.73%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
98.33
-1.23 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.52%
Inst Owner Change1.41%
Ins Owners0.47%
Ins Owner Change-1.82%
Market Cap83.43B
Revenue(TTM)17.46B
Net Income(TTM)2.48B
Analysts80.54
Price Target112.39 (14.3%)
Short Float %1.35%
Short Ratio2.18
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)1.48%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.02 | ||
| Fwd PE | 29.06 | ||
| P/S | 4.78 | ||
| P/FCF | 53.39 | ||
| P/OCF | 30.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.04 |
EPS(TTM)2.89
EY2.94%
EPS(NY)3.38
Fwd EY3.44%
FCF(TTM)1.84
FCFY1.87%
OCF(TTM)3.24
OCFY3.3%
SpS20.58
BVpS-1.05
TBVpS-2.17
PEG (NY)2.85
PEG (5Y)1.91
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 | 4.31 |
F-Score7
WACC9.08%
ROIC/WACC3.84
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.