O'Reilly Automotive, Inc. Fundamental Analysis (NASDAQ: ORLY)
O'Reilly Automotive, Inc. Fundamental Analysis (NASDAQ: ORLY)
O'Reilly Automotive, Inc. (NASDAQ: ORLY) shows moderate financial fundamentals with a PE ratio of 27.96, profit margin of 14.27%, and ROE of -2.32%. The company generates $18.7B in annual revenue with moderate year-over-year growth of 6.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -135.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ORLY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentORLY demonstrates superior asset utilization.
Valuation Score
WeakORLY trades at a premium to fair value.
Growth Score
ModerateORLY shows steady but slowing expansion.
Financial Health Score
ModerateORLY shows balanced financial health with some risks.
Profitability Score
WeakORLY struggles to sustain strong margins.
Key Financial Metrics
Is ORLY Expensive or Cheap?
P/E Ratio
ORLY trades at 27.96 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ORLY's PEG of 2.18 indicates potential overvaluation.
Price to Book
The market values O'Reilly Automotive, Inc. at -39.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.89 times EBITDA. This signals the market has high growth expectations.
How Well Does ORLY Make Money?
Net Profit Margin
For every $100 in sales, O'Reilly Automotive, Inc. keeps $14.27 as profit after all expenses.
Operating Margin
Core operations generate 19.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.32 in profit for every $100 of shareholder equity.
ROA
O'Reilly Automotive, Inc. generates $15.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
O'Reilly Automotive, Inc. produces operating cash flow of $3.30B, showing steady but balanced cash generation.
Free Cash Flow
O'Reilly Automotive, Inc. generates strong free cash flow of $2.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.61 in free cash annually.
FCF Yield
ORLY converts 2.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
-39.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.32
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.46
vs 25 benchmark
How ORLY Stacks Against Its Sector Peers
| Metric | ORLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.96 | 26.74 | Neutral |
| ROE | -232.45% | 965.00% | Weak |
| Net Margin | 14.27% | -4914.00% (disorted) | Strong |
| Debt/Equity | -5.22 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 0.75 | 2.31 | Weak Liquidity |
| ROA | 15.24% | 295.00% | Weak |
ORLY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews O'Reilly Automotive, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
99.26%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
88.36%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
26.62%
Industry Style: Cyclical, Growth, Discretionary
High Growth