📊 ORLY Key Takeaways
Is O Reilly Automotive Inc. (ORLY) a Good Investment?
O'Reilly Automotive exhibits strong operational profitability with 19.5% operating margins and robust free cash flow generation of $1.6B, but faces severe financial distress with negative stockholders' equity of -$763.4M and dangerously low liquidity ratios (0.77x current, 0.12x quick). The extreme 242,723.9% YoY revenue growth is anomalous and suggests data quality issues, obscuring true underlying business performance.
O'Reilly Automotive shows strong core fundamentals with high gross, operating, and net margins, solid free cash flow generation, and good interest coverage. Profitability appears durable, but the negative equity position, thin liquidity ratios, and questionable reported revenue growth figure mean growth quality and balance sheet structure need close monitoring.
Why Buy O Reilly Automotive Inc. Stock? ORLY Key Strengths
- Exceptional operating margins at 19.5% with 51.6% gross margin demonstrating pricing power and operational efficiency
- Strong free cash flow generation of $1.6B with 9.0% FCF margin providing cash-generating capability
- Solid interest coverage ratio of 14.7x indicating ability to service existing debt obligations
- Healthy ROA of 15.3% showing effective asset utilization despite capital structure issues
- High profitability with 51.6% gross margin, 19.5% operating margin, and 14.3% net margin
- Strong cash generation with $2.76B operating cash flow and $1.59B free cash flow
- Manageable debt servicing capacity with 14.7x interest coverage despite $6.02B long-term debt
ORLY Stock Risks: O Reilly Automotive Inc. Investment Risks
- Critical negative stockholders' equity of -$763.4M indicating technical insolvency and shareholder value destruction
- Severely inadequate liquidity with current ratio of 0.77x and quick ratio of 0.12x creating working capital stress
- High long-term debt of $6.0B relative to equity base, forcing aggressive deleveraging or refinancing risk
- Anomalous revenue growth of 242,723.9% YoY raises serious data quality concerns and obscures true operational trends
- Elevated insider activity with 22 Form 4 filings in 90 days warrants monitoring for potential confidence issues
- Negative stockholders equity weakens balance sheet flexibility and makes some leverage metrics less meaningful
- Low current ratio of 0.77x and quick ratio of 0.12x indicate tight short-term liquidity
- Reported revenue growth of +242723.9% suggests data comparability or period-quality issues, making growth assessment less reliable
Key Metrics to Watch
- Stockholders' equity trajectory and path to positive equity restoration
- Quarterly revenue trends to confirm normalization and validate current period anomaly
- Debt reduction progress and refinancing terms
- Operating cash flow sustainability and capital allocation decisions
- Current and quick ratio improvement through working capital management
- Free cash flow and FCF margin trend
- Debt levels, interest coverage, and liquidity ratios
O Reilly Automotive Inc. (ORLY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ORLY Profit Margin, ROE & Profitability Analysis
ORLY vs Automotive Sector: How O Reilly Automotive Inc. Compares
How O Reilly Automotive Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is O Reilly Automotive Inc. Stock Overvalued? ORLY Valuation Analysis 2026
Based on fundamental analysis, O Reilly Automotive Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
O Reilly Automotive Inc. Balance Sheet: ORLY Debt, Cash & Liquidity
ORLY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: O Reilly Automotive Inc.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.56 reflects profitable operations.
ORLY Revenue Growth, EPS Growth & YoY Performance
ORLY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.4B | $665.5M | $0.76 |
| Q2 2025 | $4.3B | $622.8M | $0.70 |
| Q1 2025 | $4.0B | $538.5M | $9.20 |
| Q3 2024 | $4.2B | $649.8M | $10.72 |
| Q2 2024 | $4.1B | $622.8M | $10.22 |
| Q1 2024 | $3.7B | $516.9M | $8.28 |
| Q3 2023 | $3.8B | $585.4M | $9.17 |
| Q1 2023 | $3.3B | $481.9M | $7.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
O Reilly Automotive Inc. Dividends, Buybacks & Capital Allocation
ORLY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for O Reilly Automotive Inc. (CIK: 0000898173)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ORLY
What is the AI rating for ORLY?
O Reilly Automotive Inc. (ORLY) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ORLY's key strengths?
Claude: Exceptional operating margins at 19.5% with 51.6% gross margin demonstrating pricing power and operational efficiency. Strong free cash flow generation of $1.6B with 9.0% FCF margin providing cash-generating capability. ChatGPT: High profitability with 51.6% gross margin, 19.5% operating margin, and 14.3% net margin. Strong cash generation with $2.76B operating cash flow and $1.59B free cash flow.
What are the risks of investing in ORLY?
Claude: Critical negative stockholders' equity of -$763.4M indicating technical insolvency and shareholder value destruction. Severely inadequate liquidity with current ratio of 0.77x and quick ratio of 0.12x creating working capital stress. ChatGPT: Negative stockholders equity weakens balance sheet flexibility and makes some leverage metrics less meaningful. Low current ratio of 0.77x and quick ratio of 0.12x indicate tight short-term liquidity.
What is ORLY's revenue and growth?
O Reilly Automotive Inc. reported revenue of $17.8B.
Does ORLY pay dividends?
O Reilly Automotive Inc. does not currently pay dividends.
Where can I find ORLY SEC filings?
Official SEC filings for O Reilly Automotive Inc. (CIK: 0000898173) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ORLY's EPS?
O Reilly Automotive Inc. has a diluted EPS of $2.97.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ORLY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, O Reilly Automotive Inc. has a HOLD rating with 82% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ORLY stock overvalued or undervalued?
Valuation metrics for ORLY: ROE of N/A (sector avg: 12%), net margin of 14.3% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy ORLY stock in 2026?
Our dual AI analysis gives O Reilly Automotive Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ORLY's free cash flow?
O Reilly Automotive Inc.'s operating cash flow is $2.8B, with capital expenditures of $1.2B. FCF margin is 9.0%.
How does ORLY compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 14.3% (avg: 6%), ROE N/A (avg: 12%), current ratio 0.77 (avg: 1.2).