O REILLY AUTOMOTIVE INC (ORLY) Stock Analysis

Analysis from 10-Q filed 2025-11-07. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 38.4%. FCF margin 10.5%. D/E -5.8x. Source: 10-Q filed 2025-11-07.

Metric	Value	Context
ROIC	38.4%	Above industry average
FCF Margin	10.5%	Healthy cash flow
Debt/Equity	-5.8x	Conservative leverage

ROIC 38.4% — Top 5% of sector peers. FCF margin 10.5% — 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 38.4% ROIC, Top 5% in Consumer Discretionary

ROIC TTM 38.4%, sector median 7.7%, 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)	38.4%	Excellent	Above sector median of 7.7%
Return on Equity (ROE)	-253.9%	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 $1.9B FCF at 10.5% margin, positive NaN/8 quarters

FCF TTM $1.9B. FCF margin 10.5%, 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	10.5%	Good	Healthy cash generation
Free Cash Flow (TTM)	$1.9B	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 -5.8x leverage

Debt/Equity -5.8x. Total debt $6.2B, cash & investments $252.6M. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
Debt to Equity	-5.8x	Excellent	Conservative capital structure
Net Cash Position	$-5.9B	Warning	Net debt position

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Valuation: O REILLY AUTOMOTIVE INC trades at -75.2x earnings

P/E -75.2x. EV/Sales -10.4x. FCF yield -1.0%. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
P/E Ratio	-75.2x	Red flag	Reasonable valuation
EV/Sales	-10.4x	Excellent	Attractive revenue multiple
FCF Yield	-1.0%	Warning	Lower cash yield

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Capital Allocation: O REILLY AUTOMOTIVE INC returns -1.3% shareholder yield

Total shareholder yield -1.3% (buyback -1.3%). Capital returned $2.5B TTM. Source: 10-Q filed 2025-11-07.

Metric	ORLY	Rating	Context
Total Shareholder Yield	-1.3%	Warning	Dividend + buyback yield combined
Buyback Yield	-1.3%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.5B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	38.4%	Top 5%	5.0x above
Free Cash Flow Margin	10.5%	Top 10%	4.7x above
Gross Margin	51.6%	Top 50%	1.3x above
Operating Margin	19.6%	Top 10%	4.6x above
Return on Equity (ROE)	-253.9%	Top 5%	-23.9x below

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Financial Scorecard

Metric	ORLY	Rating	Sector Context
Return on Invested Capital (ROIC)	38.4%	Excellent	Top 5% of sector (median: 7.7%)
Free Cash Flow Margin	10.5%	Good	Top 10% of sector (median: 2.3%)
Gross Margin	51.6%	Excellent	Top 50% of sector (median: 38.7%)
Debt to Equity Ratio	-580.6%	Excellent	Conservative capital structure
Free Cash Flow Yield	-1.0%	Red flag	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 38.4%. Sector median 7.7%. 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 10.5%, generating $1.9 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 -75.2x, which is above the sector median of N/A. EV/Sales -10.4x. 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 7.9% year-over-year. EPS -14.9% YoY. Source: 10-Q filed 2025-11-07.

Q: Is O REILLY AUTOMOTIVE INC buying back stock?

O REILLY AUTOMOTIVE INC (ORLY) repurchased $2.5 billion of stock over the trailing twelve months. 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 38.4%, sector median 7.7% (Top 5%). FCF margin 10.5%, sector median 2.3% (Top 10%). Gross margin 51.6%, 12.9pp 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 -7.9% 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 Q1 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.