O'Reilly Automotive ORLY
US retail chain of automotive parts and accessories, with a model of company-owned stores and sales to professionals and individuals. O'Reilly Automotive shows a high-quality business with a gross margin of 51.64% and operating margin of 20.15%, supported by revenue growth of 8.1% and earnings growth of 10.3%. However, its valuation is demanding (P/E 27.34, EV/EBITDA 18.94) and momentum is weak (-16.59% over 12 months), limiting near-term appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
US retail chain of automotive parts and accessories, with a model of company-owned stores and sales to professionals and individuals. O'Reilly Automotive shows a high-quality business with a gross margin of 51.64% and operating margin of 20.15%, supported by revenue growth of 8.1% and earnings growth of 10.3%. However, its valuation is demanding (P/E 27.34, EV/EBITDA 18.94) and momentum is weak (-16.59% over 12 months), limiting near-term appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.7 |
| Quality / Moat | 6.3 |
| Valuation | 4.1 |
| Growth | 6.3 |
| Dividend | 1.5 |
| Momentum | 2.6 |
| Risk & Context | 8.4 |
OVERALL SCORE: 5.3/10
Context and risks
The macro context (rates, oil, geopolitics) does not materially affect O'Reilly's business: it is an auto parts retailer with demand tied to the age of the vehicle fleet, not to rates or energy. Its net debt/EBITDA of 2.24 is moderate and its P/E of 27.34 is not of extreme duration, so the rise in rates has no significant direct impact.
News considered in the analysis
- America’s Cars Keep Getting Older. These 4 Auto Parts Stocks Get Paid — La tendencia estructural de envejecimiento del parque automovilístico estadounidense favorece la demanda de repuestos, un viento de cola para el negocio de O'Reilly.
- AutoZone Stock Has One Thing Left To Prove — Artículo sobre un competidor directo (AutoZone) sin información nueva sobre O'Reilly.
- This Perennial Winner Is Down 20% From Its All-Time High. History Says It Can Double in the Next 5 Years. — Opinión genérica de Motley Fool sobre una acción no identificada; sin información accionable.
- 2 Large-Cap Stocks with Exciting Potential and 1 Facing Headwinds — Listículo sin análisis específico de O'Reilly.
- 1 Profitable Stock to Target This Week and 2 We Question — Listículo sin información nueva sobre O'Reilly.
Verdict: Hold: business quality and growth justify a premium, but current valuation and weak momentum do not offer enough margin of safety to buy.
Main risk: The main risk is the demanding valuation (P/E 27.34, EV/EBITDA 18.94) in a rising rate environment, which could compress the multiple if growth decelerates or market sentiment deteriorates.
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