O'Reilly Auto (ORLY) AI Stock Analysis

• Market Cap: $78.94B
• Dividend Yield: N/A
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.24
• Revenue Growth: 4.90%
• EPS Growth: 3.28%
• Country: US
• Employees: 93,419
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 854,841,800
• 10 Day Avg. Volume: 4,226,096
• 30 Day Avg. Volume: 4,627,951
• PEG Ratio: 103.30
• Price to Book (P/B): -57.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.97
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 10.35
• Enterprise Value/Ebitda: 6.02
• 1Y Price Target: $101.27
• Price Target Upside: 6.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $102.00 ▲(6.97%Upside)

O'Reilly Auto's strong financial performance and positive earnings call are tempered by high valuation concerns and financial risks from leverage. Technical indicators show a neutral trend.

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 Categories

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

Tariffs Impact

Tariffs introduce significant uncertainty on the rest of the year.

O'Reilly Auto Business Overview & Revenue Model

Company Description

O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Its stores offer do-it-yourself and professional service provider customers a selection of products for domestic and imported automobiles, vans, and trucks. As of December 31, 2021, the company owned and operated 5,759 stores in the United States, and 25 stores in Mexico. O'Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.

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 demonstrates strong revenue and profit growth with robust cash flow generation. However, negative equity and high leverage pose financial risks.

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

O'Reilly Auto Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORLY, the sentiment is Positive. The current price of 95.35 is above the 20-day moving average (MA) of 91.28, above the 50-day MA of 90.87, and above the 200-day MA of 86.68, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORLY.

O'Reilly Auto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPC	75 Outperform	$17.06B	20.19	17.50%	3.80%	2.65%	-32.91%
ORLY	73 Outperform	$78.94B	34.61	-174.09%	―	4.90%	3.28%
AZO	73 Outperform	$62.13B	25.24	-14.95%	―	5.15%	1.99%
CVNA	73 Outperform	$74.42B	119.71	44.39%	―	32.23%	-46.86%
TSCO	67 Neutral	$30.00B	28.14	49.62%	1.57%	2.07%	-2.13%
Sector *	62 Neutral	$16.95B	11.10	-7.23%	3.24%	1.71%	-24.93%
AAP	53 Neutral	$3.66B	59.62	-23.77%	1.99%	-16.55%	-941.57%

O'Reilly Auto Corporate Events

O’Reilly Auto Schedules Q2 2025 Earnings Release

On July 1, 2025, O’Reilly Automotive, Inc. announced the schedule for its second quarter 2025 earnings release and conference call. The earnings will be released on July 23, 2025, after 3:30 p.m. Central Time, followed by a conference call on July 24, 2025, at 10:00 a.m. Central Time. This announcement provides stakeholders with key dates to review the company’s financial performance, reflecting O’Reilly’s commitment to transparency and engagement with its investors.

The most recent analyst rating on (ORLY) stock is a Hold with a $79.92 price target. To see the full list of analyst forecasts on O’Reilly Auto stock, see the ORLY Stock Forecast page.

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.