ORLY

O REILLY AUTOMOTIVE INC

Consumer Discretionary • CIK: 0000898173

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Market Cap
$59.62B
P/E (TTM)
7.8x
Rev Growth (TTM)
+6.4%
Net Margin (TTM)
14.3%
FCF Yield (TTM)
2.7%
FCF Margin (TTM)
9.0%

Filing Intelligence

7.0/10
10-K filed Feb 27, 2026 • FY 2025

Executive Summary

Significant commitments exist for construction projects ($275.9M) and renewable energy tax credits ($450M), with the latter due in August 2026.. Sales increased by 6.4% See detailed pass outputs for...

Key Concerns

  • ●Profitability is stable, with gross margins improving due to efficiencies, but operating margins face pressure from rising SG&A costs due...
  • ●The company maintains a confident outlook, highlighting its competitive advantages and strategic focus on store expansion and omnichannel...
  • ●Significant commitments exist for construction projects ($275.9M) and renewable energy tax credits ($450M), with the latter due in August...

Key Strengths

  • ●ORLY demonstrates strong revenue growth driven by comparable store sales increases and new store openings, with pricing power to pass on...
  • ●Liquidity appears strong, supported by operating cash flows and credit facilities, though management acknowledges potential impacts from...
View Full Quarterly Insights →

LATEST EARNINGS

•
Q3 2025
•
5 months ago
•View source
Revenue
$4.71B
+7.8%
Net Income
$725.90M
+9.1%
EPS
$0.85
+11.8%
Gross
51.9%↑ +0.3%
Operating
20.7%↑ +0.2%
Net
15.4%↑ +0.2%
  • •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%.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$1.6B
Q4 '25
$364M+20%
Q3 '25
$304M-33%
FCF Margin
TTM9.0%
Q4 '258.3%+28%
Sector: 2.7%Top 25%
OCF Margin15.5%
OCF/NI1.09x
CapEx Coverage2.4x
FCF Yield2.7%
FCF Growth (2Y)-15%
Cash Conversion Cycle
-52 days
DSO: 8+DIO: 229−DPO: 289
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.5%
Div Yield0.0%
+
Buyback (TTM)3.5%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.6B
Stock Repurchases (TTM)$2.1B
Capital Return / FCF131.6%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
38.8%
Stable
-0.0% YoY-3.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
15.2%
8Q: 15.1%
Asset Turnover
1.13x
8Q: 1.15x
Leverage (1+D/E)
-6.88x
D/E: -7.88x
DuPont: -118.3% ≈ 38.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
2.99x
8Q:3.10x
-25.6%
Invested Cap Turn
2.55x
8Q:2.62x
-25.2%
CapEx Intensity
16.7%
8Q:17.1%
CapEx/Depreciation
2.52x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$17.8B
$4.4B↓6.2%
$4.7B↑4.0%
$4.5B↑9.4%
$4.1B↑1.0%
$4.1B↓6.2%
$4.4B↑2.2%
$4.3B↑7.4%
$4.0B
Operating Income
$3.5B
$828.6M↓15.1%
$976.1M↑6.7%
$914.5M↑23.3%
$741.5M↑0.4%
$738.6M↓17.6%
$896.7M↑3.9%
$863.3M↑14.7%
$752.5M
Net Income
$2.5B
$605.2M↓16.6%
$725.9M↑8.6%
$668.6M↑24.2%
$538.5M↓2.3%
$551.1M↓17.2%
$665.5M↑6.8%
$622.8M↑13.8%
$547.2M
Operating Cash Flow
$2.8B
$633.5M↑2.8%
$616.5M↓18.5%
$756.8M↑0.2%
$755.1M↑20.9%
$624.5M↓19.1%
$772.0M↓18.6%
$948.9M↑34.7%
$704.2M
Free Cash Flow
$1.6B
$364.5M↑19.7%
$304.4M↓33.3%
$456.1M↓2.6%
$468.2M↑40.2%
$334.0M↓35.0%
$513.7M↓29.0%
$723.5M↑59.0%
$455.0M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
7.8x
Volatile
8Q: 139.5x-105629%
Valuation Lenses
Earnings
7.8x
vs – sector
Cash Flow
40.9x
EV/FCF vs –
Growth-Adj
1.2xPEG
Fair for growth
Quality-Adj
0.2P/E per %ROIC
ROIC: 38.8%
Shareholder Returns
Dividend
–
Buyback
3.5%
Total Yield
3.5%
Market Cap$59.62B
EV$65.22B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
-130/100
Below Average

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

Returns on Capital

Return on Equity (ROE)Top 10%
-2.2%
8Q:–
Return on Invested Capital (ROIC)Top 25%
38.8%
8Q:–
-3.4%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 15.2%
Asset Turnover: 1.13x

Earnings Quality

Cash Conversion

1.09x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin51.6%

Capital Efficiency

Invested Capital Turnover2.55x

Working Capital

Cash Conversion Cycle-52 days

Growth Quality & Momentum

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

Growth Rates

Revenue Growth YoY
6.4%
OpInc Growth YoY
12.2%
EPS Growth YoY
3.6%
FCF 3Y CAGR
-14.9%

Growth Quality Analysis

⚠Working Capital Drag: FCF growth lagging revenue by 21.3%
⚠Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
51.6%
Operating
19.5%
Top 25% in sector
Net
14.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-5.3 pts
FCF: 9.0% | Net: 14.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
–Net Debt: $5.82B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research