O'Reilly Automotive, Inc. (ORLY)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach O'Reilly as a Graham-style owner: what is the business worth, and what am I paying? The filed record shows a steady auto-parts retailer. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.9B, net income $715.1M, and diluted EPS $0.86, above fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $4.5B, net income $668.6M, and diluted EPS $0.78. For FY2025, the year ended 2025-12-31, revenue was $17.8B versus $16.7B in FY2024, the year ended 2024-12-31, net income was $2.5B versus $2.4B, and diluted EPS was $2.97 versus $2.71. That is consistent growth, and trailing free cash flow of $2.2B supports the quality case. The steady record hints at a modest moat, but the data given do not let me quantify store-level economics or competitive advantage. FairStock calculates ROCE of 13.67%, a Piotroski F-Score of 6/9, an Altman Z-Score of 2.30, and a FairStock Score of 62/100; P/B, ROE, and D/E are not available here, so I cannot complete a full Graham balance-sheet check. The price is the issue. At the 2026-10-26 close of $91.05, FairStock puts the P/E at 28.90, PEG at 2.90, EV/EBITDA at 19.59, and FCF yield at only 2.9%. Those are not deep-value numbers. FairStock classifies O'Reilly as Cyclical — Auto Parts because earnings follow the economic cycle, which argues for a margin of safety. The 52-week range is $82.59–$102.46 and there is no dividend. I see a good business, but at this price the evidence does not offer a clear Graham-style bargain.

In plain English: O'Reilly Automotive sells parts, tools, and supplies for cars and trucks. The business looks strong, with rising sales and profits and solid cash generation. At $91.05 on 2026-10-26, the shares look expensive compared with the company's earnings and cash flow.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer