|ORLY Overview
ORLY

O REILLY AUTOMOTIVE INC

Consumer Discretionary • CIK: 0000898173

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Market Cap
$-17.26B
P/E (TTM)
2.2x
Rev Growth (TTM)
+6.2%
Net Margin (TTM)
14.2%
FCF Yield (TTM)
-9.1%
FCF Margin (TTM)
8.9%

LATEST EARNINGS

Q3 2025
4 months ago
View source
Revenue
Net Income
EPS
  • Comparable store sales increased 5.6% for the third quarter.
  • Diluted earnings per share increased 12% to $0.85.
  • Gross profit increased 8% to $2.44 billion, with gross margin expanding 30bps to 51.9%.
  • Operating income increased 9% to $976 million, with operating margin expanding 20bps to 20.7%.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.6B
Q3 '25
$304M-33%
Q2 '25
$456M-3%
FCF Margin
TTM8.9%
Q3 '256.5%-36%
Sector: 4.9%Above Avg
OCF Margin15.8%
OCF/NI1.11x
CapEx Coverage2.3x
FCF Yield-9.1%
FCF Growth (2Y)-15%
Cash Conversion Cycle
-53 days
DSO: 8+DIO: 225DPO: 287

Capital Allocation & Returns

Accumulating Cash
Total Shareholder YieldTTM
TTM-12.0%
Div Yield0.0%

Limited capital returns

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.6B
Stock Repurchases (TTM)$2.1B
Capital Return / FCF132.4%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
39.7%
Stable
-0.1% YoY+0.3%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
15.2%
8Q: 15.5%
Asset Turnover
1.14x
8Q: 1.15x
Leverage (1+D/E)
-5.61x
D/E: -6.61x
DuPont: -97.0%39.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.02x
8Q:3.10x
-10.3%
Invested Cap Turn
2.61x
8Q:2.64x
-5.2%
CapEx Intensity
17.8%
8Q:17.4%
CapEx/Depreciation
2.64x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$17.5B
$4.7B4.0%
$4.5B9.4%
$4.1B1.0%
$4.1B6.2%
$4.4B2.2%
$4.3B7.4%
$4.0B3.8%
$3.8B
Operating Income
$3.4B
$976.1M6.7%
$914.5M23.3%
$741.5M0.4%
$738.6M17.6%
$896.7M3.9%
$863.3M14.7%
$752.5M4.7%
$718.7M
Net Income
$2.5B
$725.9M8.6%
$668.6M24.2%
$538.5M2.3%
$551.1M17.2%
$665.5M6.8%
$622.8M13.8%
$547.2M1.0%
$552.5M
Operating Cash Flow
$2.8B
$616.5M18.5%
$756.8M0.2%
$755.1M20.9%
$624.5M19.1%
$772.0M18.6%
$948.9M34.7%
$704.2M36.4%
$516.4M
Free Cash Flow
$1.6B
$304.4M33.3%
$456.1M2.6%
$468.2M40.2%
$334.0M35.0%
$513.7M29.0%
$723.5M59.0%
$455.0M72.3%
$264.1M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
2.2x
Volatile
8Q: 123.6x-44628%
Valuation Lenses
Earnings
2.2x
vs sector
Cash Flow
52.4x
EV/FCF vs
Growth-Adj
0.0xPEG
Undervalued for growth
Quality-Adj
0.1P/E per %ROIC
ROIC: 39.7%
Shareholder Returns
Dividend
Buyback
Total Yield
Market Cap$-17.26B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
-99/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Bottom 25%
-1.9%
8Q:
Return on Invested Capital (ROIC)Top 25%
39.7%
8Q:
Flat
vs Sector:0.2%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 15.2%
Asset Turnover: 1.14x

Earnings Quality

Cash Conversion

1.11x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin51.5%

Capital Efficiency

Invested Capital Turnover2.61x

Working Capital

Cash Conversion Cycle-53 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
49/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
6.2%
OpInc Growth YoY
8.8%
EPS Growth YoY
148.7%
FCF 3Y CAGR
-14.5%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 20.7%
Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
51.5%
Operating
19.3%
Top 25% in sector
Net
14.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-5.3 pts
FCF: 8.9% | Net: 14.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
Net Debt: $5.71B
Interest Coverage
Leverage Metrics
Debt-to-Equity
-6.61x
Balance sheet risk & solvency analysis