O'Reilly Auto (ORLY) AI Stock Analysis

O'Reilly Auto

(BMV:ORLY)

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Positive Factors

Professional customer growthStrong professional-business growth indicates O’Reilly is gaining share with repair shops while benefiting from recurring vehicle maintenance demand. Growth in both ticket values and transaction counts is more durable than relying solely on pricing or isolated customer activity.

Negative Factors

Leveraged balance sheetNegative equity and rising debt materially reduce financial flexibility, even though the company remains profitable. Greater leverage can increase refinancing and interest burdens, constrain capital allocation, and amplify the effect of any sustained weakening in operating performance.

O'Reilly Auto (ORLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 71.29B
Dividend Yield: ―
Average Volume (3M): 1,698
Price to Earnings (P/E): 26.9
Beta (1Y): 0.12
Revenue Growth: -2.44%
EPS Growth: 1.41%
Country: Mexico
Employees: 93,072
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Specialty Retail

O'Reilly Auto Business Overview & Revenue Model

Company Description

O'Reilly Automotive, Inc., along with its subsidiary companies, functions as a leading retail and wholesale provider of automotive aftermarket products, specialized tools, supplies, and accessories across the United States. The company's comprehensiv...

O'Reilly Auto Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-0.33%|Next Earnings Date:Feb 09, 2027

Earnings Call SentimentPositive

The call was strongly positive. O'Reilly reported broad-based comparable store sales growth, double-digit EPS growth, improved cash flow, raised sales, margin, operating profit, and free cash flow guidance, and accelerated its new-store expansion plans. The company also expressed confidence in continued share gains and resilient maintenance demand. Offsetting concerns included DIY transaction pressure, petroleum-category margin pressure, elevated SG&A and fuel costs, higher leverage, and expected moderation in the inflation benefit, but these issues were presented alongside strong execution and generally favorable outlook commentary.

Positive Updates

Strong Comparable Store Sales Growth

Third-quarter comparable store sales increased 7.2%, while year-to-date comparable store sales increased 7.1%, despite very tough comparisons. Third-quarter comparable store sales growth on a two-year stacked basis was 12.8%, an acceleration from the first half of the year.

Negative Updates

DIY Transaction Count Pressure

DIY transaction counts declined by a low-single-digit percentage in the third quarter, which management said was evidence of some pressure on the overall consumer. This was more than offset by higher average ticket values.

Company Guidance

For 2026, O’Reilly raised comparable store sales guidance to a range of 5.5% to 6.5%, total revenues to between $19 billion and $19.3 billion, diluted EPS to the range of $3.25 to $3.35, gross margin to a range of 51.6% to 52.1%, operating profit to a range of 19.5% to 20%, SG&A per store growth to a range between 4.5% to 5%, effective tax rate to 22.7 percent, and free cash flow to a range of $1.9 billion to $2.2 billion; the company expects fourth-quarter inflation of 2.5, 3%, average inventory per store growth of 5 percent, inventory turns of 1.6x, capital expenditures of $1.3 billion to $1.4 billion, 225 to 235 net new store openings, and an adjusted debt to EBITDA optimal leverage target of 2.5x, while its 2027 new store target is 265 to 275 net new stores.

O'Reilly Auto Risk Analysis

O'Reilly Auto disclosed 16 risk factors in its most recent earnings report. O'Reilly Auto reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

O'Reilly Auto Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:ORLY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMZN	74Outperform	$2.59T	19.17	26.71%	―	15.35%	73.92%
EBAY	71Outperform	$53.40B	26.05	46.11%	1.00%	15.33%	-0.34%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AZO	60Neutral	$51.02B	20.30	-90.08%	―	7.39%	5.02%
AAP	47Neutral	$2.72B	32.38	3.79%	2.22%	-1.30%	―
PRTS	45Neutral	$55.65M	-2.29	-37.30%	―	-7.72%	69.15%

* Consumer Cyclical Sector Average

Performance Comparison

MX:ORLY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:ORLY	O'Reilly Automotive	1650.00	-150.00	-8.33%
AAP	Advance Auto Parts Inc	45.11	-1.32	-2.85%
AMZN	Amazon.Com, Inc.	240.35	-13.65	-5.37%
AZO	AutoZone Inc	3169.82	-406.32	-11.36%
EBAY	Ebay Inc	121.64	39.91	48.84%
PRTS	CarParts.com Inc	6.90	0.28	4.25%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

O'Reilly Auto AI Stock Analysis