O'Reilly Auto (ORLY) AI Stock Analysis

• Market Cap: $78.42B
• Dividend Yield: N/A
• Average Volume (3M): 4.89M
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.22
• Revenue Growth: 6.19%
• EPS Growth: 6.98%
• Country: US
• Employees: 93,419
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.85
• Shares Outstanding: 844,104,060
• 10 Day Avg. Volume: 5,336,610
• 30 Day Avg. Volume: 4,889,759
• PEG Ratio: 5.24
• Price to Book (P/B): -50.46
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 34.14
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 5.73
• Enterprise Value/Gross Profit: 11.14
• Enterprise Value/Ebitda: 25.79
• 1Y Price Target: $111.53
• Price Target Upside: 20.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 2.97
• Revenue Forecast (FY): $17.76B

• Rating: 66 Neutral
• Price Target: $106.00 ▲(14.16% Upside)

O'Reilly Auto's overall stock score is driven by strong earnings growth and strategic expansion efforts, as highlighted in the earnings call. However, financial risks from significant leverage and valuation concerns due to a high P/E ratio temper the score. The technical indicators suggest potential bearish momentum, while the expanded share repurchase program adds a positive note.

Positive Factors

Revenue Growth

The significant growth in comparable store sales, particularly in the professional segment, indicates strong demand and effective market penetration, supporting long-term revenue growth.

Expansion Strategy

Aggressive store expansion enhances market presence and accessibility, potentially driving future revenue and market share growth.

Share Repurchase Program

The expanded share repurchase program reflects confidence in the company's financial health and can enhance shareholder value over the long term.

Negative Factors

Significant Leverage

High leverage and negative equity can limit financial flexibility and increase risk, potentially impacting long-term stability and growth.

Cash Flow Challenges

Declining free cash flow growth suggests potential liquidity challenges, which could affect the company's ability to invest in growth initiatives.

Inflation and Tariff Impacts

Rising costs due to tariffs and inflation could pressure margins and profitability, affecting long-term financial performance.

O'Reilly Auto Business Overview & Revenue Model

Company Description

O'Reilly Automotive, Inc. is a leading retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Founded in 1957 and headquartered in Springfield, Missouri, the company operates a vast network of stores that cater to both professional mechanics and do-it-yourself customers. O'Reilly offers a wide range of products, including batteries, brakes, filters, and engine parts, as well as providing services such as battery testing and oil recycling. The company is committed to delivering high-quality products and exceptional customer service across its extensive store locations.

How the Company Makes Money

O'Reilly Auto generates revenue primarily through the sale of automotive parts and accessories in its retail stores and through its e-commerce platform. The company's revenue model is driven by both individual retail customers and commercial customers, including repair shops and service centers. Key revenue streams include sales of automotive parts, tools, and accessories, as well as ancillary services offered at their locations. O'Reilly benefits from strong supplier relationships and partnerships with major automotive manufacturers, allowing it to maintain a diverse and extensive inventory. Additionally, the company's focus on customer service and loyalty programs contributes to repeat business, enhancing its overall earnings potential.

O'Reilly Auto Financial Statement Overview

Summary

O'Reilly Auto shows strong revenue growth and operational efficiency, but the balance sheet reveals significant leverage and negative equity, posing financial risks. Cash flow generation is solid but under pressure, indicating a need for improved cash flow efficiency.

Income Statement

O'Reilly Auto has demonstrated consistent revenue growth with a TTM revenue growth rate of 1.99%. The gross profit margin remains strong at 51.47%, indicating efficient cost management. However, the net profit margin has slightly decreased to 14.22% from the previous year, suggesting some pressure on profitability. Overall, the company maintains solid EBIT and EBITDA margins, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, leading to a high and negative debt-to-equity ratio of -9.39. This indicates significant leverage and potential financial risk. Return on equity is also negative, reflecting challenges in generating returns for shareholders. The equity ratio is not favorable, suggesting reliance on debt financing.

Cash Flow

Operating cash flow remains robust, but there is a decline in free cash flow growth by -11.81% TTM, indicating potential cash flow challenges. The free cash flow to net income ratio is healthy at 56.77%, showing good cash conversion. However, the operating cash flow to net income ratio is relatively low, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.46B	16.71B	15.81B	14.41B	13.33B	11.60B
Gross Profit	8.99B	8.55B	8.10B	7.38B	7.02B	6.09B
EBITDA	3.88B	3.73B	3.62B	3.31B	3.25B	2.74B
Net Income	2.48B	2.39B	2.35B	2.17B	2.16B	1.75B
Balance Sheet
Total Assets	16.28B	14.89B	13.87B	12.63B	11.72B	11.60B
Cash, Cash Equivalents and Short-Term Investments	204.51M	130.25M	279.13M	108.58M	362.11M	465.64M
Total Debt	8.40B	7.92B	7.84B	6.55B	5.87B	6.16B
Total Liabilities	17.17B	16.26B	15.61B	13.69B	11.79B	11.46B
Stockholders Equity	-894.68M	-1.37B	-1.74B	-1.06B	-66.42M	140.26M
Cash Flow
Free Cash Flow	1.56B	2.03B	2.03B	2.58B	2.76B	2.37B
Operating Cash Flow	2.75B	3.05B	3.03B	3.15B	3.21B	2.84B
Investing Cash Flow	-1.18B	-1.17B	-995.94M	-739.99M	-615.62M	-614.89M
Financing Cash Flow	-1.49B	-2.03B	-1.87B	-2.66B	-2.69B	-1.80B

O'Reilly Auto Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 92.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORLY, the sentiment is Negative. The current price of 92.85 is below the 20-day moving average (MA) of 98.01, below the 50-day MA of 98.31, and below the 200-day MA of 96.12, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 34.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORLY.

O'Reilly Auto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSCO	73 Outperform	$27.82B	25.41	45.46%	1.75%	4.26%	0.73%
GPC	69 Neutral	$18.01B	22.30	17.05%	3.22%	3.26%	-25.41%
ORLY	66 Neutral	$78.42B	32.16	―	―	6.19%	6.98%
CVNA	66 Neutral	$99.02B	101.65	43.53%	―	45.55%	5776.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AZO	61 Neutral	$56.84B	23.66	―	―	3.81%	-4.26%
AAP	48 Neutral	$2.65B	-6.78	-23.85%	2.34%	-19.41%	-957.94%

O'Reilly Auto Corporate Events

O’Reilly Auto’s Executive Chairman Sets Trading Plan

On November 24, 2025, Greg Henslee, Executive Chairman of O’Reilly Automotive, Inc., established a trading plan under Rule 10b5-1 for the sale of up to 138,705 shares of the company’s common stock. This plan, set to run from March 5, 2026, to April 27, 2026, aims to facilitate the exercise and sale of stock options due to expire in February 2027, ensuring compliance with securities laws and transparency in trading activities.

O’Reilly Auto Expands Share Repurchase Program by $2B

On November 18, 2025, O’Reilly Automotive, Inc.’s Board of Directors approved an increase of $2.0 billion to its share repurchase program, bringing the total authorization to $29.75 billion. This move, effective for three years, allows the company to make stock repurchases based on market conditions and corporate needs, potentially impacting its market positioning and shareholder value.

O’Reilly Auto Sets Q3 2025 Earnings Release Date

O’Reilly Automotive, Inc. announced the release date for its third quarter 2025 financial results, scheduled for October 22, 2025, with a subsequent conference call on October 23, 2025. This announcement is significant for investors and analysts as it provides insights into the company’s financial performance and market positioning, with the results accessible via the company’s website.