O Reilly Automotive Inc (ORLY) stock analysis
Close on Nov 11, 2026Market cap $73.24BP/E 27.8Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
O Reilly Automotive passes 11 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 5/6
- Past performance
- 3/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 56.8%, above the 10% that usually covers the cost of capital.
Earnings grew over 5 years
Net income grew 7.7% a year on average over the last five fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 10.0% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 9.1% over the last twelve months, against a 5-year average of 7.7% a year.
What to watch
Margin of safety under 20%
The price is 37.7% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $90.54 is above our fair value estimate of $65.77.
Revenue growing under 10% a year
Revenue grew 7.3% a year over the last three fiscal years, short of the 10% we look for.
P/E above its 5-year median
O Reilly Automotive's P/E of 27.8 is above its own 5-year median of 27.6.
Valuation0/6
P/E above its 5-year median
O Reilly Automotive's P/E of 27.8 is above its own 5-year median of 27.6.
P/E above the industry
O Reilly Automotive's P/E of 27.8 is above the Automotive Dealers and Gasoline Service Stations median of 15.6.
EV/EBITDA above its 5-year median
O Reilly Automotive's EV/EBITDA of 18.8 is above its 5-year median of 18.8.
P/S above the industry
O Reilly Automotive's price-to-sales of 3.86 is above the Automotive Dealers and Gasoline Service Stations median of 0.32 (book value is negative, so we use sales).
Trading above fair value
The share price of $90.54 is above our fair value estimate of $65.77.
Margin of safety under 20%
The price is 37.7% above fair value, so there is no margin of safety.
Growth5/6
Revenue growing under 10% a year
Revenue grew 7.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 10.0% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 9.1% over the last twelve months, against a 5-year average of 7.7% a year.
Growing faster than the industry
Revenue grew 8.7% over the last twelve months; the Automotive Dealers and Gasoline Service Stations median is 4.4%.
Guidance raised
O Reilly Automotive raised its the Year Ending December 31, 2026 Total revenue outlook on Jul 29, 2026.
Gross margin improving
Gross margin was 51.8% over the last twelve months, against 51.5% a year earlier.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 56.8%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings grew over 5 years
Net income grew 7.7% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 14.3% over the last twelve months, against a 5-year average of 14.9%.
Net margin above the industry
O Reilly Automotive's net margin of 14.3% is above the Automotive Dealers and Gasoline Service Stations median of -1.9%.
Financial health3/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 41.9% of total debt.
Interest well covered
Operating income covers interest expense 13.6 times.
Short-term assets don't cover short-term debts
Current assets are 0.77 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.58; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
O Reilly Automotive has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$65.77
The share price is 38% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 21.6× | 27.6× | 15.6× | $70.55 | 44% |
| EV/EBITDA | 15.0× | 18.8× | 11.2× | $70.63 | 39% |
| Earnings power | 7.4% cost of equity | – | – | $41.67 | 17% |
| Fair value | $65.77 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 27.6
- Automotive Dealers and Gasoline Service Stations median 15.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $561.30M
- Value traded per 1% price move
- $473.98M
Downside
Low risk
- Typical loss in a bad month
- 9.6%
- Volatility (annualized)
- 26%
- Sharpe ratio, 1 year
- -0.46
- Beta to the S&P 500 (5Y)
- 0.46
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +6.4% | +7.3% | +8.9% | +8.4% | |
| Gross profit | +7.2% | +7.5% | +8.6% | +8.2% | |
| Operating income | +6.4% | +5.4% | +7.4% | +8.6% | |
| Net income | +6.3% | +5.3% | +7.7% | +10.5% | |
| EPS, diluted | +9.6% | +10.0% | +13.6% | +17.1% | |
| Free cash flow | -21.4% | -14.9% | -7.6% | +5.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 57.8% | 651.9% | -237.8% | |
| Return on assets | 15.0% | 15.7% | 16.2% | |
| Current ratio | 0.96 | 0.86 | 0.77 | |
| Debt to equity | 1.16 | 29.40 | -7.88 | |
| Net debt to EBITDA | 0.91× | 1.34× | 1.47× | |
| Interest coverage | 24.0× | 15.0× | 14.7× | |
| Inventory turnover | 1.5× | 1.6× | 1.6× | |
| Capex to revenue | 5.5% | 4.0% | 6.6% | |
| Diluted shares | 1.45B | 1.12B | 856M |
Where the cash went
Fiscal 2021 to 2025, five years combined
O Reilly Automotive generated $15.20B from operations and spent $17.29B on capital expenditure, dividends and share buybacks. 24% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 14.3% | 1.13× | -14.73× | -237.8% |
| FY2024 | 14.3% | 1.16× | -9.25× | -153.5% |
| FY2023 | 14.8% | 1.19× | -9.46× | -167.6% |
| FY2022 | 15.1% | 1.18× | -21.60× | -385.5% |
| FY2021 | 16.2% | 1.14× | 315.78× | 5863.6% |
| FY2020 | 15.1% | 1.04× | 41.51× | 651.9% |
| FY2019 | 13.7% | 1.09× | 24.90× | 370.4% |
| FY2018 | 13.9% | 1.23× | 15.45× | 263.1% |
| FY2017 | 12.6% | 1.22× | 6.48× | 99.4% |
| FY2016 | 12.1% | 1.24× | 3.87× | 57.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$2.54B
- Cash generatingOperating cash flow above zero$2.76B
- Return on assets improvedROA up on the prior year17.2% → 17.0%
- Earnings backed by cashOperating cash flow above net income$2.76B vs $2.54B
- Less leverageLong-term debt to assets fell37.1% → 36.4%
- Better liquidityCurrent ratio rose0.71 → 0.77
- No dilutionShare count did not rise881M → 856M
- Gross margin improvedGross margin up on the prior year51.20% → 51.59%
- More efficientAsset turnover rose1.20 → 1.19
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