O REILLY AUTOMOTIVE INC (ORLY) Stock Analysis

Analysis from 10-Q filed 2025-11-07. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 38.0%. FCF margin 11.6%. D/E -3.8x. Source: 10-Q filed 2025-11-07.

Metric	Value	Context
ROIC	38.0%	Above industry average
FCF Margin	11.6%	Healthy cash flow
Debt/Equity	-3.8x	Conservative leverage

ROIC 38.0% — Top 5% of sector peers. FCF margin 11.6% — Top 10%.

Explore O REILLY AUTOMOTIVE INC: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ORLY: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: O REILLY AUTOMOTIVE INC earns 38.0% ROIC, Top 5% in Consumer Discretionary

ROIC TTM 38.0%, sector median 6.6%, Top 5%. DuPont: NOPAT margin 15.3% × asset turnover 1.1x. Gross margin 51.6%. Operating margin 19.6%. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
Return on Invested Capital (ROIC)	38.0%	Excellent	Above sector median of 6.6%
Return on Equity (ROE)	-248.9%	Red flag	Moderate equity returns
Gross Margin	51.6%	Excellent	Strong pricing power
Operating Margin	19.6%	Good	Efficient operations

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Cash Flow: O REILLY AUTOMOTIVE INC generates $2.2B FCF at 11.6% margin, positive NaN/8 quarters

FCF TTM $2.2B. FCF margin 11.6%, Top 10%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
Free Cash Flow Margin	11.6%	Good	Healthy cash generation
Free Cash Flow (TTM)	$2.2B	Good	Positive cash generation
OCF/Net Income	1.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: O REILLY AUTOMOTIVE INC at -3.8x leverage

Debt/Equity -3.8x. Total debt $7.0B, cash & investments $262.2M. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
Debt to Equity	-3.8x	Excellent	Conservative capital structure
Net Cash Position	$-6.8B	Warning	Net debt position

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Valuation: O REILLY AUTOMOTIVE INC trades at 29.1x earnings

P/E 29.1x. EV/Sales 4.6x. FCF yield 2.8%. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
P/E Ratio	29.1x	Adequate	Premium valuation
EV/Sales	4.6x	Good	Growth premium priced in
FCF Yield	2.8%	Adequate	Lower cash yield

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Capital Allocation: O REILLY AUTOMOTIVE INC returns 4.3% shareholder yield

Total shareholder yield 4.3% (buyback 4.3%). Capital returned $3.4B TTM. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
Total Shareholder Yield	4.3%	Good	Dividend + buyback yield combined
Buyback Yield	4.3%	Good	Active share repurchases
Total Capital Returned (TTM)	$3.4B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	38.0%	Top 5%	5.8x above
Free Cash Flow Margin	11.6%	Top 10%	4.6x above
Gross Margin	51.6%	Top 50%	1.3x above
Operating Margin	19.6%	Top 10%	4.8x above
Return on Equity (ROE)	-248.9%	Top 5%	-21.6x below
P/E Ratio	29.1x	N/A	-

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Financial Scorecard

Metric	ORLY	Rating	Sector Context
Return on Invested Capital (ROIC)	38.0%	Excellent	Top 5% of sector (median: 6.6%)
Free Cash Flow Margin	11.6%	Good	Top 10% of sector (median: 2.5%)
Gross Margin	51.6%	Excellent	Top 50% of sector (median: 38.5%)
Debt to Equity Ratio	-382.1%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	29.1x	Adequate	Growth premium
Free Cash Flow Yield	2.8%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is O REILLY AUTOMOTIVE INC's Return on Invested Capital (ROIC)?

O REILLY AUTOMOTIVE INC (ORLY) has a trailing twelve-month Return on Invested Capital (ROIC) of 38.0%. Sector median 6.6%. Source: 10-Q filed 2025-11-07.

Q: What is O REILLY AUTOMOTIVE INC's Free Cash Flow Margin?

O REILLY AUTOMOTIVE INC (ORLY) has a free cash flow margin of 11.6%, generating $2.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-07.

Q: What is O REILLY AUTOMOTIVE INC's P/E ratio and how does it compare to peers?

O REILLY AUTOMOTIVE INC (ORLY) trades at a P/E ratio of 29.1x, which is above the sector median of N/A. EV/Sales 4.6x. FCF yield 2.8%. Source: 10-Q filed 2025-11-07.

Q: What is O REILLY AUTOMOTIVE INC's revenue and earnings growth?

O REILLY AUTOMOTIVE INC (ORLY) grew revenue by 8.5% year-over-year. EPS +12.4% YoY. Source: 10-Q filed 2025-11-07.

Q: Is O REILLY AUTOMOTIVE INC buying back stock?

O REILLY AUTOMOTIVE INC (ORLY) repurchased $3.4 billion of stock over the trailing twelve months. This represents a buyback yield of 4.3%. Source: 10-Q filed 2025-11-07.

Q: How does O REILLY AUTOMOTIVE INC compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, O REILLY AUTOMOTIVE INC (ORLY) shows: ROIC 38.0%, sector median 6.6% (Top 5%). FCF margin 11.6%, sector median 2.5% (Top 10%). Gross margin 51.6%, 13.2pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with O REILLY AUTOMOTIVE INC?

Quantitative warning flags for O REILLY AUTOMOTIVE INC (ORLY): 1) ROIC declining -4.6% over 8 quarters. Source: 10-Q filed 2025-11-07.

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Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.