📊 ORLY Key Takeaways
Is O Reilly Automotive Inc. (ORLY) a Good Investment?
O'Reilly generates strong operational cash flow ($788.5M FCF) with excellent profitability margins (18.5% operating, 13.2% net), but faces severe balance sheet stress with negative stockholders' equity (-$1.1B), alarming liquidity ratios (current 0.76x, quick 0.13x), and $6.2B long-term debt. The disconnect between reported revenue growth (+242,724% YoY) and net income growth (+6.3%) raises data quality concerns that require clarification.
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.
O Reilly Automotive Inc. Key Strengths (ORLY)
- Strong operating margins (18.5%) and gross margins (51.5%) indicate efficient operations and pricing power
- Substantial positive free cash flow ($788.5M) and solid operating cash generation ($1.0B) despite balance sheet stress
- Adequate interest coverage (13.4x) and ability to service debt obligations from operating income
- 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
- Negative stockholders' equity (-$1.1B) indicates liabilities exceed assets; severe structural balance sheet deterioration
- Critical liquidity stress with current ratio of 0.76x and quick ratio of 0.13x; insufficient short-term assets to cover obligations
- Extreme revenue growth figure (+242,723.9% YoY) paired with modest net income growth (+6.3%) suggests potential accounting anomaly or data error requiring verification
- High long-term debt ($6.2B) against negative equity creates solvency risk if cash generation deteriorates
- 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 trend and path to positive equity restoration
- Current ratio and quick ratio improvements; working capital management
- Free cash flow sustainability and debt reduction trajectory
- 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 |
|---|---|---|---|
| Q1 2026 | $4.1B | $538.5M | $0.62 |
| 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 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 2, 2026 | 4 | xslF345X06/form4-06022026_090641.xml | View → |
| Jun 1, 2026 | 8-K | orly-20260601x8k.htm | View → |
| May 22, 2026 | 4 | xslF345X06/form4-05222026_080557.xml | View → |
| May 20, 2026 | 4 | xslF345X06/form4-05202026_080509.xml | View → |
| May 18, 2026 | 4 | xslF345X06/form4-05182026_080534.xml | View → |
❓ Frequently Asked Questions about ORLY
What is the AI rating for ORLY?
O Reilly Automotive Inc. (ORLY) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ORLY's key strengths?
Claude: Strong operating margins (18.5%) and gross margins (51.5%) indicate efficient operations and pricing power. Substantial positive free cash flow ($788.5M) and solid operating cash generation ($1.0B) despite balance sheet stress. 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: Negative stockholders' equity (-$1.1B) indicates liabilities exceed assets; severe structural balance sheet deterioration. Critical liquidity stress with current ratio of 0.76x and quick ratio of 0.13x; insufficient short-term assets to cover obligations. 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 $4.6B.
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 $0.72.
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 grade reflects both perspectives for balanced insights.
What is ORLY's fundamental grade?
Based on our AI fundamental analysis in June 2026, O Reilly Automotive Inc. has a A grade with 69% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. 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 13.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is ORLY's AI grade for 2026?
Our dual AI analysis gives O Reilly Automotive Inc. a combined A grade 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 $1.0B, with capital expenditures of $244.4M. FCF margin is 17.3%.
How does ORLY compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 13.2% (avg: 6%), ROE N/A (avg: 12%), current ratio 0.76 (avg: 1.2).