O'REILLY AUTOMOTIVE INC (ORLY)
US67103H1077 - Common Stock
We assign a fundamental rating of 5 out of 10 to ORLY. ORLY was compared to 123 industry peers in the Specialty Retail industry. ORLY scores excellent on profitability, 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.
In the past 5 years ORLY has always been profitable.
ORLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.38%, ORLY belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
The Return On Invested Capital of ORLY (39.36%) is better 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 12.28%.
| 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
The Profit Margin of ORLY (14.52%) is better than 97.52% of its industry peers.
ORLY's Profit Margin has been stable in the last couple of years.
The Operating Margin of ORLY (19.65%) is better than 97.52% of its industry peers.
In the last couple of years the Operating Margin of ORLY has remained more or less at the same level.
ORLY has a better Gross Margin (51.21%) than 80.17% of its industry peers.
In the last couple of years the Gross Margin of ORLY has remained more or less at the same level.
| 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.
Compared to 1 year ago, ORLY has less shares outstanding
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
An Altman-Z score of 4.04 indicates that ORLY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.04, ORLY belongs to the best of the industry, outperforming 80.99% 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 Debt to FCF ratio of 2.74. This is in the better half of the industry: ORLY outperforms 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 4.04 |
ROIC/WACC4.25
WACC9.26%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ORLY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.70, ORLY is doing worse than 93.39% of the companies in the same industry.
A Quick Ratio of 0.10 indicates that ORLY may have some problems paying 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 96.69% 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%.
ORLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.03% yearly.
ORLY shows a small growth in Revenue. In the last year, the Revenue has grown by 5.25%.
The Revenue has been growing by 10.64% on average over the past years. This is quite good.
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 11.90% yearly.
ORLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y8.32%
EPS Next 2Y9.14%
EPS Next 3Y10.15%
EPS Next 5Y11.9%
Revenue Next Year5.12%
Revenue Next 2Y5.31%
Revenue Next 3Y5.49%
Revenue Next 5Y6.21%
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
With a Price/Earnings ratio of 30.60, ORLY can be considered very expensive at the moment.
ORLY's Price/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/Earnings ratio to 29.12, which is the current average of the S&P500 Index.
ORLY is valuated quite expensively with a Price/Forward Earnings ratio of 26.98.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
When comparing the Price/Forward Earnings ratio of ORLY to the average of the S&P500 Index (23.79), we can say ORLY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 26.98 |
4.2 Price Multiples
ORLY's Enterprise Value to EBITDA is on the same level as the industry average.
ORLY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.57 | ||
| EV/EBITDA | 20.72 |
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)3.68
PEG (5Y)1.61
EPS Next 2Y9.14%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
No dividends for ORLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
O'REILLY AUTOMOTIVE INC
NASDAQ:ORLY (11/12/2024, 8:23:04 PM)
After market: 1236.85 0 (0%)1236.85
+8.33 (+0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap71.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.6 | ||
| Fwd PE | 26.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.68
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.65% | ||
| PM (TTM) | 14.52% | ||
| GM | 51.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.51%
EPS 3Y17.8%
EPS 5Y
EPS Q2Q%
EPS Next Y8.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.25%
Revenue growth 3Y10.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y