ORLY
O'Reilly Automotive, Inc.
Consumer Cyclical · Auto Parts · United States · Stock
Score Breakdown
Scored for Long-Term Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 52.1/100 reflects a business with genuinely strong profitability and financial health, but held back by zero scores on dividend and macro theme factors, plus only moderate growth and softening momentum.
- Single-digit revenue and net income growth rates, while consistent, are viewed by the model as adequate but not exceptional, contributing to a mid-range growth score.
- The quarterly trend of a peak in 2025Q3 followed by a pullback and only partial recovery in 2026Q1 signals deceleration, limiting the momentum contribution to the composite.
Why Not Higher
- The absence of a dividend and no macro theme assignment both scored zero, which weighed on the composite and prevented a higher overall result despite strong underlying fundamentals.
- Revenue and earnings growth in the mid-single digits, while steady, did not reach the higher rates the model would reward with a top-tier growth score.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $16,708,479,000 to FY2025's $17,781,992,000, a gain of +6.4%, while net income rose +6.3% over the same period. Diluted EPS expanded at a faster +9.6% from FY2024 to FY2025, reflecting share count reduction amplifying per-share gains.
The model appears to reward the consistent but moderate single-digit top- and bottom-line growth, with the faster EPS expansion providing a modest lift. A mid-range score of 10.0/20 suggests the model views this growth rate as adequate but not exceptional.
In FY2025, O'Reilly posted an operating margin of 19.5%, a net margin of 14.3%, and a return on assets of 15.3%, all reflecting strong capital efficiency and pricing power.
The model rewards these high margin and return figures with a near-top score of 15.6/20, as double-digit net margins and a 19.5% operating margin are well above typical retail-sector benchmarks, and a 15.3% return on assets signals efficient use of the company's asset base.
In FY2025, O'Reilly's interest coverage ratio (operating income divided by interest expense) stood at 14.7, indicating the company's operating income covers its interest obligations nearly fifteen times over. Total assets in FY2025 were $16,538,253,000.
An interest coverage ratio of 14.7x in FY2025 signals a very comfortable debt-servicing capacity, which the model rewards with a high score of 16.0/20. The large total asset base of $16,538,253,000 further reflects the scale of the business underpinning that coverage.
Over the last four quarters, revenue peaked at $4,705,696,000 in 2025Q3 before declining to $4,414,314,000 in 2025Q4 and partially recovering to $4,560,539,000 in 2026Q1. Net income and operating income followed a similar pattern, with net income reaching $725,896,000 in 2025Q3, falling to $605,233,000 in 2025Q4, and holding near that level at $604,181,000 in 2026Q1.
The quarterly trend shows a mid-year peak followed by a pullback and only partial recovery, suggesting deceleration rather than sustained acceleration. The model's score of 13.0/20 reflects this mixed momentum profile — positive overall but lacking a clear upward trajectory in the most recent quarters.
O'Reilly Automotive does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards dividend income as a component of total return, a confirmed non-payer receives a score of 0.0/20 on this factor. Investors seeking dividend income would need to look elsewhere, though the company may return capital through other means such as share repurchases.
O'Reilly Automotive is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification outcome and does not reflect negatively on the company's business or prospects. Under the model's current methodology, securities without a theme assignment do not receive theme-based score credit, which accounts for the 0.0/20 result on this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
O'Reilly Automotive posted solid FY2025 results, with revenue reaching $17,781,992,000 — a 6.4% year-over-year gain — and diluted EPS expanding 9.6% as share repurchases amplified per-share growth. Profitability metrics are well above retail norms, with a 19.5% operating margin, 14.3% net margin, and 15.3% return on assets, while an interest coverage ratio of 14.7x signals very comfortable debt-servicing capacity. However, quarterly momentum has softened since a mid-year peak in 2025Q3, the company pays no dividend, and it carries no macro theme assignment, all of which weigh on the composite score of 52.1/100. The model labels the stock 'Research Further' with a Very Low risk rating.
Plain English
O'Reilly is a highly profitable auto-parts retailer that is growing steadily and has little financial stress, but it doesn't pay dividends, doesn't fit any of the model's tracked investment themes, and its recent quarterly results have been losing a bit of steam — so the model says it's worth digging into but isn't a standout pick right now.
Bull Case vs. Bear Case
Bull Case
- Exceptional profitability: O'Reilly's FY2025 operating margin of 19.5% and net margin of 14.3% are well above typical retail benchmarks, reflecting strong pricing power and capital efficiency.
- Strong balance sheet resilience: An interest coverage ratio of 14.7x in FY2025 means operating income covers interest obligations nearly fifteen times over, indicating very low financial distress risk.
- EPS growth outpacing revenue: Diluted EPS grew 9.6% from FY2024 to FY2025, faster than the 6.4% revenue gain, as share count reduction amplified per-share returns for remaining shareholders.
Bear Case
- No dividend income: O'Reilly is a confirmed non-payer of dividends, meaning investors seeking income from their holdings would need to look elsewhere.
- Decelerating quarterly momentum: Revenue peaked at $4,705,696,000 in 2025Q3 before falling to $4,414,314,000 in 2025Q4 and only partially recovering to $4,560,539,000 in 2026Q1, suggesting the business has lost near-term upward momentum.
- No macro theme alignment: O'Reilly is not assigned to any of the 24 tracked macro themes in the model, meaning it does not benefit from tailwinds associated with any currently monitored investment trend.
What Could Change the Picture
Bullish Triggers
- A sustained reacceleration in quarterly revenue and net income beyond the 2025Q3 peak levels could signal that the mid-year slowdown was temporary rather than structural.
- Initiation of a dividend or a clearly communicated capital-return program beyond share repurchases could broaden the stock's appeal to income-oriented investors.
Bearish Triggers
- If operating margins compress meaningfully from the current 19.5% level, it would challenge the profitability thesis that underpins much of the bull case.
- Continued net income stagnation near the $604–605 million quarterly range seen in 2025Q4 and 2026Q1 would reinforce concerns about a genuine growth deceleration.
Risk Profile
Very Low RiskO'Reilly's Very Low risk rating is supported by an interest coverage ratio of 14.7x in FY2025, indicating the company's operating income covers its debt obligations with substantial headroom. While quarterly momentum has softened since the 2025Q3 peak, the underlying profitability and debt-servicing capacity remain robust, limiting downside financial risk.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.