ORLY O'Reilly Automotive Inc

O'Reilly Automotive is one of the largest retailers and distributors of automotive parts and accessories in the United States. Sector: Consumer Discretionary.

O'Reilly Automotive Inc (ORLY) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Through the lens of capital efficiency, ROIC is 30.84%, WACC is 7.01%, and the economic spread is 23.83%. On balance, the gap between operating returns and funding costs is healthy, pointing to businesses with genuine pricing and reinvestment advantages. Supporting metrics show ROE at N/A and ROA at 14.93%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

On a multiple basis, the company trades at trailing P/E of 30.82, forward P/E of 28.34, PEG of 2.28. Forward P/E is broadly in line with trailing, suggesting analysts are not projecting a material change in profitability over the coming year. At this PEG level, valuation is defensible given the growth outlook, though there is limited margin of safety against estimate disappointments. The company's weighted current ratio of 0.77 suggests near-term liquidity is more constrained than average. The valuation setup is broadly consistent with a market that is pricing growth without being reckless about it — a balanced but not cautious stance.

The margin profile breaks down as follows: gross margin sits at 51.59%, operating margin at 19.46%, and free cash flow margin at 8.96%. Gross margins are in good shape, suggesting the the company maintain pricing discipline at the revenue-to-cost interface. Operating margins are solid, reflecting adequate cost control relative to the revenue base. The company's FCF margin is adequate — cash generation is present, but capital expenditure needs absorb a notable portion of earnings. This stack calls for monitoring: profitability is present, but conversion from revenue to operating income to free cash is not fully consistent.

The growth and outlook picture reads as follows: TTM revenue growth of 7.78% pointing to reasonable revenue execution across the company. In parallel, analysts project moderate appreciation over the next 12 months based on current consensus targets. The gap between trailing fundamentals and forward expectations matters most at inflection points — and the current environment is not without those. For long-term holders, the central question is whether today's execution quality is a leading indicator of what's already priced into analyst targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Reviewed in aggregate, this is a high-quality profile with few clear structural weaknesses — a combination that historically tends to support above-average long-term outcomes.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.