O'REILLY AUTOMOTIVE INC (ORLY) Stock Fundamental Analysis
NASDAQ:ORLY - Nasdaq - US67103H1077 - Common Stock - Currency: USD
ORLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 120 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.
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 Return On Assets of 16.02%. This is amongst the best in the industry. ORLY outperforms 94.02% of its industry peers.
ORLY's Return On Invested Capital of 38.48% is amongst the best of the industry. ORLY outperforms 99.15% 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 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | N/A | ||
| ROIC | 38.48% |
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
Looking at the Profit Margin, with a value of 14.28%, ORLY belongs to the top of the industry, outperforming 96.58% of the companies in the same industry.
ORLY's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 19.46%, ORLY belongs to the best of the industry, outperforming 96.58% of the companies in the same industry.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY has a better Gross Margin (51.20%) than 79.49% of its industry peers.
ORLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.46% | ||
| PM (TTM) | 14.28% | ||
| GM | 51.2% |
OM growth 3Y-3.99%
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
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
Compared to 5 years ago, ORLY has less shares outstanding
ORLY has a better debt/assets ratio than last year.
2.2 Solvency
ORLY has an Altman-Z score of 4.17. This indicates that ORLY is financially healthy and has little risk of bankruptcy at the moment.
ORLY has a Altman-Z score of 4.17. This is amongst the best in the industry. ORLY outperforms 82.91% of its industry peers.
ORLY has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as ORLY would need 2.72 years to pay back of all of its debts.
ORLY's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. ORLY outperforms 72.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.17 |
ROIC/WACC3.79
WACC10.15%
2.3 Liquidity
A Current Ratio of 0.71 indicates that ORLY may have some problems paying its short term obligations.
The Current ratio of ORLY (0.71) is worse than 92.31% of its industry peers.
ORLY has a Quick Ratio of 0.71. This is a bad value and indicates that ORLY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ORLY (0.09) is worse than 96.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
ORLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.65%.
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 5.67% 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)5.65%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%2.59%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%6.88%
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 11.95% on average per year.
ORLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.15% yearly.
EPS Next Y11.34%
EPS Next 2Y11.67%
EPS Next 3Y11.68%
EPS Next 5Y11.95%
Revenue Next Year5.79%
Revenue Next 2Y5.82%
Revenue Next 3Y6.09%
Revenue Next 5Y6.15%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 32.06, the valuation of ORLY can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ORLY.
Compared to an average S&P500 Price/Earnings ratio of 29.63, ORLY is valued at the same level.
ORLY is valuated quite expensively with a Price/Forward Earnings ratio of 28.79.
ORLY's Price/Forward Earnings ratio is in line with the industry average.
ORLY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.06 | ||
| Fwd PE | 28.79 |
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 63.25% 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 | 36.98 | ||
| EV/EBITDA | 21.77 |
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 decent profitability rating of ORLY may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)1.8
EPS Next 2Y11.67%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
ORLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1303.41
-9.03 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.81%
Inst Owner Change-3.66%
Ins Owners0.52%
Ins Owner Change-3.25%
Market Cap74.92B
Analysts78.89
Price Target1350.76 (3.63%)
Short Float %1.71%
Short Ratio2.94
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)-3.8%
Min EPS beat(2)-4.44%
Max EPS beat(2)-3.15%
EPS beat(4)0
Avg EPS beat(4)-4.06%
Min EPS beat(4)-5.84%
Max EPS beat(4)-2.8%
EPS beat(8)2
Avg EPS beat(8)-1.91%
EPS beat(12)4
Avg EPS beat(12)-1.13%
EPS beat(16)8
Avg EPS beat(16)3.42%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-3.36%
Max Revenue beat(4)-0.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)1.7%
PT rev (3m)6.58%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-3.26%
EPS NY rev (1m)-1.27%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.06 | ||
| Fwd PE | 28.79 | ||
| P/S | 4.48 | ||
| P/FCF | 36.98 | ||
| P/OCF | 24.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.77 |
EPS(TTM)40.66
EY3.12%
EPS(NY)45.27
Fwd EY3.47%
FCF(TTM)35.25
FCFY2.7%
OCF(TTM)53.05
OCFY4.07%
SpS290.68
BVpS-23.85
TBVpS-40.03
PEG (NY)2.83
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.02% | ||
| ROE | N/A | ||
| ROCE | 49.18% | ||
| ROIC | 38.48% | ||
| ROICexc | 39.25% | ||
| ROICexgc | 45.83% | ||
| OM | 19.46% | ||
| PM (TTM) | 14.28% | ||
| GM | 51.2% | ||
| FCFM | 12.13% |
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)49.05%
ROICexgc(5y)47.19%
ROCE(3y)51.25%
ROCE(5y)48.42%
ROICexcg growth 3Y-3.1%
ROICexcg growth 5Y9.95%
ROICexc growth 3Y-2.09%
ROICexc growth 5Y10.15%
OM growth 3Y-3.99%
OM growth 5Y0.56%
PM growth 3Y-4.2%
PM growth 5Y0.83%
GM growth 3Y-0.94%
GM growth 5Y-0.75%
F-Score5
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 221.56% | ||
| Cap/Sales | 6.12% | ||
| Interest Coverage | 15.55 | ||
| Cash Conversion | 82.13% | ||
| Profit Quality | 84.9% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 4.17 |
F-Score5
WACC10.15%
ROIC/WACC3.79
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)5.65%
EPS 3Y9.35%
EPS 5Y17.85%
EPS Q2Q%2.59%
EPS Next Y11.34%
EPS Next 2Y11.67%
EPS Next 3Y11.68%
EPS Next 5Y11.95%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y7.83%
Revenue growth 5Y10.48%
Sales Q2Q%6.88%
Revenue Next Year5.79%
Revenue Next 2Y5.82%
Revenue Next 3Y6.09%
Revenue Next 5Y6.15%
EBIT growth 1Y2.03%
EBIT growth 3Y3.53%
EBIT growth 5Y11.1%
EBIT Next Year23.99%
EBIT Next 3Y12.04%
EBIT Next 5Y9.84%
FCF growth 1Y-0.08%
FCF growth 3Y-9.84%
FCF growth 5Y13.4%
OCF growth 1Y0.51%
OCF growth 3Y-1.67%
OCF growth 5Y12.29%