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 has an excellent profitability rating, but there are some minor concerns on its financial health. ORLY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ORLY was profitable.
In the past year ORLY had a positive cash flow from operations.
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
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.
The Average Return On Invested Capital over the past 3 years for ORLY is significantly above the industry average of 12.26%.
| 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's Profit Margin of 14.52% is amongst the best of the industry. ORLY outperforms 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.
ORLY's Operating Margin has been stable in the last couple of years.
ORLY has a better Gross Margin (51.21%) than 80.17% 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
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 3.95 indicates that ORLY is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.95, ORLY belongs to the best of the industry, outperforming 81.82% 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's Debt to FCF ratio of 2.74 is fine compared to the rest of the industry. ORLY outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 3.95 |
ROIC/WACC4.2
WACC9.37%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ORLY may have some problems paying its short term obligations.
With a Current ratio value of 0.70, ORLY is not doing good in the industry: 93.39% of the companies in the same industry are doing better.
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.
The Quick ratio of ORLY (0.10) is worse than 96.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.51% 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 19.03% yearly.
Looking at the last year, ORLY shows a small growth in Revenue. The Revenue has grown by 5.25% in the last year.
ORLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.64% yearly.
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
Based on estimates for the next years, ORLY will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.90% on average per year.
The Revenue is expected to grow by 6.21% on average over the next years.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 29.81, which means the current valuation is very expensive for ORLY.
The rest of the industry has a similar Price/Earnings ratio as ORLY.
ORLY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.28, the valuation of ORLY can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ORLY.
The average S&P500 Price/Forward Earnings ratio is at 23.82. ORLY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 26.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ORLY.
ORLY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.62 | ||
| EV/EBITDA | 20.09 |
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)3.58
PEG (5Y)1.57
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 (11/21/2024, 8:00:02 PM)
After market: 1204.74 0 (0%)1204.74
+15.87 (+1.33%)
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 Cap69.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 26.28 | ||
| 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)3.58
PEG (5Y)1.57
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