O'Reilly Automotive, Inc. (ORLY) is listed on NASDAQ and operates in the Auto - Parts industry (Consumer Cyclical sector).
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 i...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 28 |
| Hold | 18 |
| Sell | 1 |
| Strong Sell | 0 |
O'Reilly Automotive, Inc., along with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts and services in the United States. The company offers a range of new and remanufactured automotive hard parts and maintenance items, including alternators, batteries, brake components, and engine parts. It also provides accessories such as floor mats and seat covers. O'Reilly's stores supply auto body paint, automotive tools, and equipment for professional service providers. Additional services include used oil, oil filter, and battery recycling, as well as battery, wiper, and bulb replacement. The company also offers battery diagnostic testing, electrical testing, check engine light code extraction, and a loaner tool program. Its stores cater to both do-it-yourself customers and professional service providers, offering products for domestic and imported vehicles. As of December 31, 2021, O'Reilly Automotive operated 5,759 stores in the United States and 25 stores in Mexico. Founded in 1957, the company is headquartered in Springfield, Missouri.
Over the past three fiscal years, the company has demonstrated consistent revenue growth, achieving a compound annual growth rate (CAGR) of 6.0%, with revenue increasing from $15.8 billion in 2023 to $17.8 billion in 2025. Despite this top-line growth, profitability metrics have shown signs of pressure. The operating margin experienced a slight decline of 0.7 percentage points, from 20.2% in 2023 to 19.5% in 2025, while the net margin decreased by 0.6 percentage points to 14.3% over the same period. This margin compression occurred despite a modest increase in gross margin, which rose by 0.3 percentage points. Earnings per share (EPS) grew at a 5.1% CAGR, reaching $2.97 in 2025, supported by a slight reduction in share count, which enhanced per-share value. However, cash flow generation has been a concern, with free cash flow (FCF) declining consistently at an 11.4% CAGR, from $2.0 billion in 2023 to $1.6 billion in 2025, and the FCF margin compressing by 3.9 percentage points. The company's net debt position has increased, rising from $7.6 billion to $8.3 billion, reflecting a growing leverage profile. Additionally, liquidity remains a challenge, with the current ratio below 1, indicating potential short-term financial constraints. Despite these challenges, the company maintains a robust interest coverage ratio of 14.8x, suggesting it can comfortably meet its interest obligations.
O'Reilly Automotive, Inc. is set to release its first quarter 2026 earnings on April 29, with a conference call scheduled for April 30. This announcement comes as institutional trading activity around the company has been notable. Childress Capital Advisors LLC reduced its holdings in O'Reilly Automotive by 9% during the fourth quarter, while Akre Capital Management LLC increased its stake significantly, now holding 9,410,714 shares valued at $848,188,000. Banque Pictet & Cie SA also increased its position, acquiring 109,379 shares worth $55,731,000. Additionally, Rep. Jonathan L. Jackson sold between $15,001 and $50,000 worth of O'Reilly shares in March. These transactions reflect active portfolio management among institutional investors. The upcoming earnings release will provide further insights into the company's financial performance and market position.