$1,227.37
arrow_drop_up1.68%Is ORLY a Buy or Sell based on AI Analysis?
Fundamental Analysis
O'Reilly Automotive Inc (ORLY) has a strong financial position with a market capitalization of $63.68B, indicating a substantial presence in the market. The company's return on equity of 58.64% highlights its ability to generate strong returns for its shareholders. Additionally, O'Reilly Automotive Inc's net profit margin of 14.84% shows efficient management of costs and operations, contributing to its overall profitability. The company's solid revenue growth of 9.73% reflects its ability to attract and retain customers, leading to sustained business expansion. Furthermore, O'Reilly Automotive Inc's debt-to-equity ratio, although not provided in the data, would be a crucial indicator to assess its financial leverage and risk management strategies. In terms of valuation metrics, O'Reilly Automotive Inc's price-to-book ratio of 210.18 suggests that the market values the company significantly higher than its book value. The company's price-to-cashflow ratio of 21.13 indicates the market's willingness to pay for the company's cash-generating capabilities. Additionally, O'Reilly Automotive Inc's price-to-sales ratio of 4.06 reflects its ability to generate sales relative to its market valuation. The enterprise value-to-revenue ratio of 4.53 further reinforces the company's strong revenue generation capabilities. Furthermore, the company's strong free cashflow margin of 12.82% underscores its ability to convert a significant portion of its revenue into free cash flow, enabling it to reinvest in growth opportunities or return value to shareholders.
Positive Development
O'Reilly Automotive Inc. has consistently outperformed its competitors in the past week, indicating a strong market position and resilience in the face of market volatility. The company's stock has shown a consistent upward trend over the past few weeks, indicating a positive investor sentiment. The company's basic financials have shown a healthy financial performance, with a high asset turnover ratio and a strong net margin indicating efficient operations.
Negative Development
Despite the overall positive trend, ORLY's stock underperformed on several days in the past week, indicating potential weakness in the company's performance. The company's long-term debt to total asset ratio is relatively high, which may indicate a potential risk for investors. The company's pre-tax margin is relatively low, which could be a concern for investors looking for a strong return on investment.
Technical Analysis
Based on the technical analysis for O'Reilly Automotive Inc, the stock currently has a "SELL" rating. This is supported by various technical indicators, as there are 4 "sell" signals including RSI, CCI, WILLR, and STOCHRSI in the past month. Additionally, there are 3 "hold" indicators such as MACD, ADX, and ROC. The stock sector is categorized as Consumer Cyclical, with a 1.8% increase in stock sector change over the past year. The company also has a cumulative multiple of 8, indicating potential for growth in the future. Moreover, the stock has a technical buy indicator count of 1 for the month, specifically ATR. The stock's technical analysis also mentions a last split of 2:1 that occurred in 2005, and 3 total splits. Furthermore, it is crucial to note that the stock does not currently pay dividends. This detailed information provides investors with a comprehensive overview of O'Reilly Automotive Inc's technical analysis, enabling them to make informed decisions on their investment strategies.
Conclusion and recommendation
Based on the data provided, O'Reilly Automotive Inc (ORLY) appears to be a solid investment option. The company's financials show a strong revenue growth of 9.73%, with a healthy net margin of 14.84% and return on equity of 58.64%. Despite a negative equity of -$1.74B, ORLY has a stable current ratio of 0.72 indicating its ability to meet short-term obligations. Additionally, the company's stock performance has been consistently positive with a five-year price change percent of 190.97% and favorable analyst forecasts suggesting a potential price increase of 3.24%. In conclusion, O'Reilly Automotive Inc demonstrates strong financial performance and growth potential. With a market cap of $63.68B and a reputable position in the Consumer Cyclical sector, ORLY is a reliable investment choice for those seeking steady returns. However, potential investors should consider the high price-to-book ratio of 210.18 and closely monitor the technical indicators which signal a mix of buy, hold, and sell recommendations. Overall, O'Reilly Automotive Inc presents a promising opportunity for long-term investors looking to capitalize on the company's consistent growth and industry leadership.