O'Reilly Auto (ORLY) AI Stock Analysis

• Market Cap: $82.53B
• Dividend Yield: N/A
• Average Volume (3M): 5.08M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.23
• 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: 848,496,700
• 10 Day Avg. Volume: 5,316,274
• 30 Day Avg. Volume: 5,084,210
• 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: 1.21
• Enterprise Value/Revenue: 5.73
• Enterprise Value/Gross Profit: 11.14
• Enterprise Value/Ebitda: 25.79
• 1Y Price Target: $113.28
• Price Target Upside: 18.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 60 Neutral
• Price Target: $102.00 ▲(6.48% Upside)

O'Reilly Auto's overall stock score reflects strong earnings growth and strategic expansion efforts, as highlighted in the earnings call. However, significant financial leverage and bearish technical indicators weigh on the score. The high P/E ratio and lack of dividend yield also limit its valuation appeal.

Positive Factors

Revenue Growth

The strong growth in comparable store sales, particularly in the professional segment, underscores O'Reilly's robust market position and ability to capture demand, supporting long-term revenue expansion.

Expansion Strategy

O'Reilly's aggressive store expansion strategy enhances its market reach and customer base, positioning the company for sustained growth and competitive advantage in the auto parts retail industry.

Operational Efficiency

The increase in operating income and EPS reflects O'Reilly's operational efficiency and effective cost management, contributing to long-term profitability and shareholder value.

Negative Factors

Financial Leverage

Significant financial leverage and negative equity pose risks to O'Reilly's financial stability, potentially limiting its ability to invest in growth and weather economic downturns.

Cash Flow Challenges

The decline in free cash flow growth suggests potential liquidity constraints, which could impact O'Reilly's ability to fund operations and strategic initiatives without increasing debt.

Inflation and Tariff Impacts

Inflation and tariff-related cost pressures could erode margins and profitability, challenging O'Reilly's ability to maintain competitive pricing and operational efficiency in the long term.

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 Auto generates revenue mainly through the sale of automotive parts and accessories to both professional and DIY customers. The company's revenue model relies heavily on retail sales, which include in-store purchases and online orders. Key revenue streams include sales of replacement parts, maintenance items, and accessories, with a significant focus on providing high-quality products to meet the needs of its customer base. O'Reilly also benefits from a strong supply chain, allowing for efficient inventory management and quick replenishment of stock. Additionally, partnerships with various automotive manufacturers and suppliers enhance its product offerings, contributing to its competitive pricing and comprehensive inventory. The company's earnings are further supported by its strategic expansion into new markets and its commitment to customer service, which fosters repeat business and customer loyalty.

O'Reilly Auto Financial Statement Overview

Summary

O'Reilly Auto shows strong revenue and profit growth with robust cash flow generation. However, the balance sheet is concerning due to high leverage and negative equity, which poses financial risks.

Income Statement

O'Reilly Auto has demonstrated robust revenue growth with a consistent upward trajectory, showing a 20.4% increase from 2022 to 2025. The company maintains strong profitability metrics, with a gross profit margin around 51% and a net profit margin improving to 14.2% TTM. EBIT and EBITDA margins are also healthy, signaling efficient operations and strong earnings before interest and taxes. Overall, the income statement reflects solid performance, but the margins have shown only moderate expansion.

Balance Sheet

The company's balance sheet reveals a negative stockholders' equity, which can be a red flag and indicates high leverage. The debt-to-equity ratio is not calculable due to negative equity, but total debt has increased, posing potential financial risks. The equity ratio is negative, reflecting the company's reliance on debt financing. Overall, the balance sheet is concerning due to high leverage and negative equity.

Cash Flow

O'Reilly Auto's cash flow statement shows a strong operating cash flow, consistently above $2.9 billion annually, indicating good cash generation from operations. Free cash flow growth has been negative recently, but the operating cash flow to net income ratio remains strong at 1.2 TTM, suggesting effective conversion of income into cash. Despite the decrease in free cash flow, the company's cash flow position remains solid.

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: 95.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 95.79 is below the 20-day moving average (MA) of 101.83, below the 50-day MA of 103.42, and above the 200-day MA of 94.17, indicating a neutral trend. The MACD of -1.57 indicates Positive momentum. The RSI at 27.79 is Positive, neither overbought nor oversold. The STOCH value of 30.92 is Neutral, 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
CVNA	―	$75.58B	88.93	49.91%	―	39.48%	-34.00%
TSCO	―	$29.83B	27.16	45.46%	1.61%	4.26%	0.73%
GPC	―	$18.21B	22.56	17.05%	3.11%	3.26%	-25.41%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ORLY	―	$82.53B	33.20	―	―	6.19%	6.98%
AZO	―	$63.66B	26.33	―	―	2.43%	-3.34%
AAP	―	$3.27B	―	-24.78%	1.78%	-22.50%	-35219.23%

O'Reilly Auto Corporate Events

O’Reilly Automotive’s Earnings Call Highlights Growth and Challenges

O’Reilly Automotive’s recent earnings call painted a picture of robust growth and strategic expansion, tempered by some economic challenges. The company reported strong sales and earnings growth, with successful expansion efforts and effective tax management. However, concerns were raised regarding inflation, tariff impacts, and pressure on the DIY segment. Despite these challenges, the positive momentum in professional sales and revised guidance suggest a balanced outlook for the future.

O’Reilly Automotive Reports Strong Q3 2025 Results

O’Reilly Automotive, Inc. is a major player in the automotive aftermarket industry, providing parts, tools, and accessories for both do-it-yourself customers and professional service providers across the United States, Puerto Rico, Mexico, and Canada. The company operates over 6,500 stores and is known for its extensive product range and customer service excellence.

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.

The most recent analyst rating on (ORLY) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on O’Reilly Auto stock, see the ORLY Stock Forecast page.