Investment Thesis
O'Reilly Automotive exhibits strong operational profitability with 19.5% operating margins and robust free cash flow generation of $1.6B, but faces severe financial distress with negative stockholders' equity of -$763.4M and dangerously low liquidity ratios (0.77x current, 0.12x quick). The extreme 242,723.9% YoY revenue growth is anomalous and suggests data quality issues, obscuring true underlying business performance.
ORLY Strengths
- Exceptional operating margins at 19.5% with 51.6% gross margin demonstrating pricing power and operational efficiency
- Strong free cash flow generation of $1.6B with 9.0% FCF margin providing cash-generating capability
- Solid interest coverage ratio of 14.7x indicating ability to service existing debt obligations
- Healthy ROA of 15.3% showing effective asset utilization despite capital structure issues
ORLY Risks
- Critical negative stockholders' equity of -$763.4M indicating technical insolvency and shareholder value destruction
- Severely inadequate liquidity with current ratio of 0.77x and quick ratio of 0.12x creating working capital stress
- High long-term debt of $6.0B relative to equity base, forcing aggressive deleveraging or refinancing risk
- Anomalous revenue growth of 242,723.9% YoY raises serious data quality concerns and obscures true operational trends
- Elevated insider activity with 22 Form 4 filings in 90 days warrants monitoring for potential confidence issues
Key Metrics to Watch
- Stockholders' equity trajectory and path to positive equity restoration
- Quarterly revenue trends to confirm normalization and validate current period anomaly
- Debt reduction progress and refinancing terms
- Operating cash flow sustainability and capital allocation decisions
- Current and quick ratio improvement through working capital management
ORLY Financial Metrics
ORLY Profitability Ratios
ORLY Balance Sheet & Liquidity
ORLY 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 Growth Metrics (YoY)
ORLY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q1 2023 | $3.3B | $481.9M | $7.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ORLY Capital Allocation
ORLY SEC Filings
Access official SEC EDGAR filings for O REILLY AUTOMOTIVE INC (CIK: 0000898173)