O'Reilly Auto (ORLY) AI Stock Analysis

• Market Cap: $76.22B
• Dividend Yield: N/A
• Average Volume (3M): 5.21M
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.26
• Revenue Growth: 4.90%
• EPS Growth: 3.28%
• Country: US
• Employees: 93,419
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 0.62
• Shares Outstanding: 854,841,800
• 10 Day Avg. Volume: 5,377,027
• 30 Day Avg. Volume: 5,210,585
• PEG Ratio: 96.61
• Price to Book (P/B): -53.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.38
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 9.74
• Enterprise Value/Ebitda: 5.67
• 1Y Price Target: $100.67
• Price Target Upside: 12.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 70 Outperform
• Price Target: $98.00 ▲(9.91%Upside)

O'Reilly Auto's strong earnings guidance and consistent financial performance drive the stock's attractiveness despite valuation concerns and technical weaknesses. Challenges with financial leverage and external economic factors like tariffs and SG&A costs require careful monitoring. The comprehensive growth strategy and stock split are positive signals for future potential.

Positive Factors

Earnings Guidance

The company has raised its EPS guidance due to strong sales trends and share repurchase activity.

Financial Performance

The company demonstrated strong execution with better-than-expected comparable sales performance, driven by transactions exceeding internal expectations.

Market Position

ORLY is considered a leading position in a defensive industry with opportunities to gain more market share in a potentially volatile environment.

Negative Factors

Discretionary Spending

Discretionary categories, estimated at less than 10% of DIY revenues, are likely to slow further.

Tariff Impact

Tariffs introduce significant uncertainty on the rest of the year.

O'Reilly Auto Business Overview & Revenue Model

Company Description

O'Reilly Automotive, Inc. (ORLY) is a leading American retailer in the automotive aftermarket industry, providing a comprehensive range of automotive parts, tools, supplies, equipment, and accessories. Founded in 1957, the company serves both professional service providers and do-it-yourself customers in the United States. With a vast network of stores and a robust online presence, O'Reilly Auto Parts offers products across various categories, including batteries, brakes, engine parts, and maintenance items, catering to the needs of a diverse customer base.

How the Company Makes Money

O'Reilly Automotive, Inc. generates revenue primarily through the sale of automotive parts and accessories. The company's revenue model is built on a combination of retail and commercial sales. Retail sales are driven by do-it-yourself (DIY) customers who purchase products directly from O'Reilly's network of stores or through its online platform. Commercial sales are made to professional service providers such as auto repair shops and fleet operators, who rely on O'Reilly for a consistent supply of high-quality parts and tools. O'Reilly's extensive distribution network and strategic store locations enhance its ability to efficiently serve both market segments. Additionally, the company benefits from economies of scale and strong supplier relationships, which allow it to maintain competitive pricing and a wide product assortment. O'Reilly also invests in customer service and technical support to differentiate itself in a competitive market, driving customer loyalty and repeat business.

O'Reilly Auto Financial Statement Overview

Summary

O'Reilly Auto showcases robust financial performance with significant revenue and profit growth. The company maintains strong operating and free cash flow, indicating efficient cash generation. However, the high debt-to-equity ratio and negative stockholders' equity present financial risks, necessitating careful debt management.

Income Statement

O'Reilly Auto has demonstrated strong revenue growth, with a notable increase from $13.3 billion in 2021 to $16.9 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains robust at 51.2% TTM. Net profit margin is solid at 14.1% TTM, although slightly lower than the previous year's 14.3%. EBIT and EBITDA margins are strong, indicating efficient cost management.

Balance Sheet

The company's debt-to-equity ratio is high due to negative stockholders' equity, which is a concern for financial stability. The equity ratio is negative, reflecting the same issue. Despite this, ROE is impressive at -175.1% TTM, indicating strong returns on the negative equity base but highlighting financial risk due to leveraged operations.

Cash Flow

O'Reilly Auto maintains strong operating cash flows, with a TTM figure of $3.1 billion. Free cash flow is growing, supported by a reduction in capital expenditures. The operating cash flow to net income ratio is healthy at 1.30 TTM, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.87B	16.71B	15.81B	14.41B	13.33B	11.60B
Gross Profit	8.64B	8.55B	8.10B	7.38B	7.02B	6.09B
EBITDA	3.73B	3.73B	3.62B	3.31B	3.25B	2.74B
Net Income	2.38B	2.39B	2.35B	2.17B	2.16B	1.75B
Balance Sheet
Total Assets	15.29B	14.89B	13.87B	12.63B	11.72B	11.60B
Cash, Cash Equivalents and Short-Term Investments	191.25M	130.25M	279.13M	108.58M	362.11M	465.64M
Total Debt	8.10B	7.92B	7.84B	6.55B	5.87B	6.16B
Total Liabilities	16.65B	16.26B	15.61B	13.69B	11.79B	11.46B
Stockholders Equity	-1.36B	-1.37B	-1.74B	-1.06B	-66.42M	140.26M
Cash Flow
Free Cash Flow	2.04B	2.03B	2.03B	2.58B	2.76B	2.37B
Operating Cash Flow	3.10B	3.05B	3.03B	3.15B	3.21B	2.84B
Investing Cash Flow	-1.05B	-1.17B	-995.94M	-739.99M	-615.62M	-614.89M
Financing Cash Flow	-1.95B	-2.03B	-1.87B	-2.66B	-2.69B	-1.80B

O'Reilly Auto Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 89.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORLY, the sentiment is Neutral. The current price of 89.16 is below the 20-day moving average (MA) of 90.08, below the 50-day MA of 90.92, and above the 200-day MA of 85.37, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 29.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ORLY.

O'Reilly Auto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVNA	71 Outperform	$68.37B	111.77	44.39%	―	32.23%	-46.86%
ORLY	70 Outperform	$76.22B	32.78	-174.09%	―	4.90%	3.28%
TSCO	70 Neutral	$27.42B	25.72	49.62%	1.78%	2.07%	-2.13%
GPC	69 Neutral	$16.72B	19.79	19.19%	3.42%	1.99%	-32.18%
AZO	68 Neutral	$60.38B	24.43	-14.95%	―	5.15%	1.99%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
AAP	55 Neutral	$2.79B	59.62	-23.77%	2.15%	-16.55%	-941.57%

O'Reilly Auto Corporate Events

O’Reilly Auto Approves 15-for-1 Stock Split

At the 2025 Annual Meeting of Shareholders on May 15, O’Reilly Automotive’s shareholders elected new members to the Board of Directors and accepted the resignation of Larry O’Reilly due to the company’s mandatory retirement age policy. Additionally, the shareholders approved an amendment to increase the number of authorized shares of common stock to facilitate a 15-for-1 stock split, effective with the Secretary of State of Missouri on May 16, 2025. This stock split will provide shareholders with 14 additional shares for each share held, with trading on a post-split basis beginning on June 10, 2025. The meeting also included votes on executive compensation, auditor appointment, and a shareholder proposal, with the latter being rejected.

The most recent analyst rating on (ORLY) stock is a Hold with a $1200.00 price target. To see the full list of analyst forecasts on O’Reilly Auto stock, see the ORLY Stock Forecast page.

O’Reilly Auto Announces Q1 2025 Earnings Release Date

On April 1, 2025, O’Reilly Automotive, Inc. announced the release date for its first quarter 2025 earnings results, scheduled for April 23, 2025, with a conference call to follow on April 24, 2025. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction for the first quarter of 2025.