O'Reilly Automotive, Inc. (ORLY) AI Stock Analysis

O'Reilly Automotive, Inc., along with its subsidiaries, functions as a prominent retailer and distributor within the automotive aftermarket sector across the United States. Catering to both do-it-yourself enthusiasts and professional service providers, the company offers a comprehensive range of automotive parts, tools, equipment, and accessories. Its product lineup includes new and remanufactured hard parts and maintenance essentials such as alternators, batteries, brake components, and fluids. Stores also offer services such as battery recycling, check engine light diagnostics, loaner tool programs, and drum resurfacing, operating 5,759 stores in the United States and 25 stores in Mexico as of December 31, 2021.

O'Reilly Automotive grew annual revenue from $13.33B in FY2021 to $17.78B in FY2025, reflecting a 5-year revenue CAGR of 8.9%. Over that period, net income rose from $2.16B to $2.54B, while EPS increased from $2.14 to $2.96. Operating margin stood at 22.0% in FY2021 and 19.5% in FY2025, alongside gross margin shifting from 52.7% to 51.6%. In the trailing twelve months ending June 30, 2026, revenue reached $18.57B with an operating margin of 20.2% and EPS of $3.15. For the latest quarter ended June 30, 2026, quarterly revenue grew 8.1% year-over-year, and quarterly earnings grew 10.3%.

As of June 30, 2026, O'Reilly Automotive held $262.2M in cash and short-term investments against total debt of $9.59B, resulting in net debt of $9.33B. Total assets stood at $17.39B, with a current ratio of 0.75 and shareholders' equity of -$1.84B. In FY2025, the company produced $2.76B in operating cash flow and $1.59B in free cash flow. Capital allocation in FY2025 included $1.17B for capital expenditures and $2.10B for share buybacks, which contributed to a 14.6% reduction in share count over 5 years.

At a last close of $89.27 on October 16, 2026, O'Reilly Automotive traded at a trailing P/E of 28.3x and a forward P/E of 23.4x, compared to the median of its Nasdaq-100 Consumer Cyclical peers of 39.8x and 27.0x, respectively. Its EV/EBITDA multiple of 18.8x is below the median of its Nasdaq-100 Consumer Cyclical peers of 21.7x, while its price-to-sales ratio matches the peer median at 3.9x. Over the past year, the stock returned -11.8%, lagging the 16.8% return of the S&P 500 (SPY), though its 5-year return of 112.9% outpaced the S&P 500 return of 83.0%.

Wall Street coverage consists of 18 Strong Buy, 5 Buy, and 6 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $107.35, representing 20.2% upside compared to the last close of $89.27. Consensus estimates project current fiscal year revenue of $19.13B and EPS of $3.28, followed by next fiscal year revenue of $20.29B and EPS of $3.65. The company beat EPS expectations in 3 of the last 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of O'Reilly Automotive, Inc. (ORLY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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