O'Reilly Automotive, Inc. (ORLY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: O'Reilly Automotive, Inc.

Updated on October 29, 2026 · accounts published on October 28, 2026

A highly profitable business with steady margins and outstanding returns on capital

O'Reilly Automotive trades at a P/E of 27.0×, 51 % above its sector median, backed by a 33 % ROIC over the last 12 months.

• Is O'Reilly Automotive expensive or cheap? At a P/E of 27.0× over the last 12 months, O'Reilly Automotive trades 51 % above its sector median of 17.9×.
• How is the business doing? Over the last 12 months revenue rose 6 % and EPS 10 %, with a 20 % operating margin in line with its 2014-2025 average.
• How strong is the balance sheet? Net debt of $10.02 per share in fiscal 2025 equals 11 % of the share price and 2.1× EBITDA, below the sector's 3.0× limit.
• Can the balance sheet withstand a recession? Average ROIC of 37 % over 2021-2025 triples the 12 % healthy floor for consumer cyclicals; inventory turns of 1.5× miss the 4.0× mark.
• What to expect from the next earnings? Analysts expect EPS of $0.78 for the quarter reported on February 10, 2027; the 2026 consensus of $3.29 is unchanged in 30 days.

Is O'Reilly Automotive expensive or cheap?

O'Reilly Automotive trades at a P/E of 27.0× over the last 12 months, 2 % above its ten-year median of 26.4×. Over the decade the multiple ranged from 14.6× to 39.4×, and the stock has traded at a lower P/E than today 59 % of the time. The gap with peers is wider: the sector median P/E is 17.9× across 209 companies, a 51 % premium. The earnings yield is 3.7 % and the free cash flow yield 2.4 %. EV/sales of 4.8× in fiscal 2025 sits above its ten-year average of 3.8×. The shares are down 7 % over 12 months, yet the multiple still prices in a lot of quality.

How is the business doing?

Over the last 12 months revenue grew 6 % and earnings per share 10 %, so profit is rising faster than sales. The operating margin of 19.8 % sits on its 12-year average of 19.7 % and above the 19.5 % of fiscal 2025: steady, with no sign of erosion. Returns on capital are the standout. ROIC is 33 % over the last 12 months, 24 points above the sector median of 9.4 %, and it has stayed above 10 % in each of the last ten fiscal years. The negative ROE alongside a 14 % net margin points to negative book equity, so that ratio says little here.

How strong is the balance sheet?

Net debt was $10.02 per share in fiscal 2025, made up of $10.25 of debt against $0.23 of cash, which equals 11 % of the current share price and 2.1× EBITDA. For a business earning a ROIC above 30 %, that load looks manageable. The Altman Z of 4.1 over the last 12 months sits in the safe zone, above the 2.99 threshold, and the Piotroski score of 8 out of 9 points to solid fundamentals. The weak spot is liquidity: a current ratio of 0.77 means short-term liabilities exceed short-term assets, well below the 1.5 considered healthy in the sector.

Can the balance sheet withstand a recession?

Consumer cyclicals sell more when the economy grows and less when it slows, so this sector checks whether margins and debt survive a downturn. Peter Lynch warned that cyclicals look cheap when they are expensive, which is why the P/E is judged against the company's own history: 27.7× against a five-year average of 26.3× is neutral. O'Reilly Automotive passes on profitability, with an average operating margin of 20 % and ROIC of 37 % over 2021-2025, against healthy floors of 8 % and 12 %. It fails on inventory turnover, 1.5× in fiscal 2025 against a 4.0× benchmark, and on the current ratio.

What to expect from the next earnings?

On October 28, 2026, O'Reilly Automotive reported EPS of $0.97 against $0.93 expected, a 4 % beat. The record is mixed: it has beaten EPS estimates in only 3 of the last 8 quarters. For the next quarter, due on February 10, 2027, analysts expect EPS of $0.78. The 2026 EPS consensus of $3.29 from 19 analysts has not moved in the last 30 days, and the revenue consensus is just as stable. Of the 47 analysts covering the company, 28 recommend buying, 18 holding and 1 selling. With a premium P/E, a miss would likely weigh more than a beat helps.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.