O'Reilly Automotive (ORLY) presents a bullish thesis supported by a trailing P/E of 29.17, market capitalization of $74.2 billion, TTM revenue of $18.2 billion with 10.2% quarterly year-over-year growth, and EPS of $3.07 alongside 16.1% quarterly earnings growth. The company's robust operating margin of 18.4% and return on equity of 58.6% underscore efficient operations in the auto parts aftermarket, positioning it for continued outperformance amid steady consumer demand for vehicle maintenance.
Key catalysts include sustained earnings momentum from same-store sales growth and market expansion across its U.S. store network, with recent quarterly revenue increases driven by professional installer and DIY customer segments. Product assortment expansion in tools, equipment, and accessories, combined with strong gross profit of $9.4 billion TTM, supports further penetration in the $18+ billion aftermarket space.
Risks encompass macroeconomic headwinds such as inflation impacting consumer spending on discretionary auto repairs and intense competition from peers like AutoZone, potentially pressuring margins. These are mitigated by ORLY's high 14.3% profit margin, diversified revenue streams, and analyst consensus target of $110.25, which provides a buffer against cyclical downturns in the consumer cyclical sector.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
Get Deeper Analysis
Ask Theo anything about ORLY — earnings, valuation, technicals, or portfolio fit.
O'Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers.
Fundamental Snapshot
Revenue
18.2056B
EBITDA
4.0851B
Gross Profit
9.3999B
Operating Margin
18.4%
Profit Margin
14.3%
ROE
58.6%
Book Value
$-1.282
Beta
0.523
52-Wk High
$108.72
52-Wk Low
$84.76
Avg Volume
17.7412M
PEG Ratio
1.855
Trading Data
Open
$88.17
Previous Close
$86.9
Day Range
$88.08 – $90.255
Volume
20.9536M
Shares Outstanding
828.715M
Analyst Target
$110.25
Frequently Asked Questions
What is O'Reilly Automotive's business model?
O'Reilly Automotive operates as a leading retailer in the automotive aftermarket, selling parts, tools, supplies, and accessories to both professional service providers and DIY customers through a network of U.S. stores. The model emphasizes high-margin sales with TTM revenue of $18.2 billion and a profit margin of 14.3%.
What are O'Reilly Automotive's primary revenue sources?
Revenue primarily comes from automotive aftermarket parts and accessories, with TTM revenue at $18.2 billion split between professional installers and DIY segments. Quarterly revenue grew 10.2% year-over-year, supported by gross profit of $9.4 billion.
What competitive advantages does O'Reilly Automotive have?
ORLY benefits from strong brand recognition, extensive store footprint, and superior operating efficiency with an 18.4% operating margin and 58.6% return on equity. Its scale in the auto parts industry provides pricing power and supply chain advantages over smaller competitors.
What are the key risks for O'Reilly Automotive investors?
Key risks include macroeconomic pressures on consumer spending and competition in the auto parts sector, with a beta of 0.523 indicating moderate market sensitivity. The trailing P/E of 29.17 reflects valuation risk if growth slows from current 16.1% quarterly earnings growth.
What is the growth outlook for O'Reilly Automotive?
The outlook is positive with 10.2% quarterly revenue growth, 16.1% earnings growth, and an analyst target price of $110.25. Forward P/E of 27.78 suggests continued expansion in the $18+ billion aftermarket, driven by vehicle maintenance demand.
