| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 33 | 26.9x | 17.2x | Bottom tier | |
Growth | 62 | 8.5% | 7.1% | Around median | |
Quality | 78 | 38.9% | 4.5% | Top tier | |
Safety | 56 | 2.2x | 2.6x | Around median | |
Capital Return | 43 | 0.00% | 0.19% | Around median | |
Momentum | 34 | -18.4% | 0.5% | Bottom tier | |
Sentiment | 47 | 17 | 3 | Around median |
The floor: what the company is worth if growth stopped today
68% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.29% as of 2026-09-30. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
O'Reilly Automotive operates an automotive parts retail network in North America serving professional customers and vehicle owners who perform maintenance themselves. The network comprised approximately 6,700 stores and more than 95,000 employees in Q2 of fiscal year 2026, and its revenue model is based on selling parts through stores while providing inventory availability, delivery services, and technical tools; the professional customer business was the largest contributor to comparable sales growth, while the DIY business remained an additional source of growth.
In Q2 of fiscal year 2026, sales increased 7.9% according to the July 30, 2026 report, and comparable sales rose 6%, including growth of approximately 10% among professional customers and low-single-digit growth in DIY. Gross margin remained unchanged year over year at 51.4%, and diluted earnings per share increased 10%, while $367 million of sales growth came from stores, including $100 million from stores opened in 2025 and 2026 that had not yet entered the comparable-store base.
EDGAR data for Q1 of fiscal year 2026 showed revenue of $4.6 billion, gross profit of $2.3 billion, net income of $604.2 million, and earnings per share of $0.72. On a trailing-twelve-month basis through 2026, revenue reached $18.2 billion, gross profit $9.4 billion, and net income $2.6 billion, compared with revenue of $17.8 billion and net income of $2.5 billion in fiscal year 2025.
The analyst consensus rates ORLY shares as “Buy,” with an average price target of $107.30 and a relatively wide range of $98 to $115. The average is near the upper end of the 52-week range of $82.59–$108.72, while the highest target exceeds that level; these targets balance the raised fiscal year 2026 guidance against the risks of slowing inflation benefits, pressure on DIY transactions, and operating costs. The available data do not provide a valid comparable earnings multiple, so the stock's valuation here is based on the target range and the 52-week range instead of inferring an unstated multiple.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Sales increased 7.9% and comparable sales rose 6% in Q2 of fiscal year 2026, exceeding management's expectations in every month of the quarter. The professional customer business grew approximately 10%, with mid-single-digit ticket-count growth, while the DIY business achieved low-single-digit growth driven primarily by a higher average ticket value. Gross margin remained at 51.4%, and diluted earnings per share increased 10%.
The company expects revenue of between $18.9 billion and $19.2 billion in fiscal year 2026. It raised its comparable sales growth range to 4%–6% from 3%–5% and increased its diluted earnings per share forecast to $3.20–$3.30. It maintained gross margin guidance of 51.5%–52%, operating margin guidance of 19.3%–19.8%, and free cash flow guidance of $1.8 billion–$2.1 billion.
The professional customer business was the largest contributor to comparable sales growth during Q2 of fiscal year 2026. It achieved growth of approximately 10%, marking its fourth consecutive quarter of double-digit growth, with mid-single-digit ticket-count growth. However, the faster growth of this business also pressures the gross margin mix compared with some DIY sales.
Automated analysis for informational purposes only — not investment advice.
Free cash flow reached $1.5 billion during the first half of fiscal year 2026, compared with $904 million in the corresponding period. The company prioritizes investment in stores, the distribution network, inventory, and technology, with expected annual capital expenditures of between $1.3 billion and $1.4 billion. After those investments, it repurchased 34 million shares for $3.1 billion from the beginning of fiscal year 2026 through the earnings announcement on July 29, 2026.
Management expects same-SKU price inflation support to decline from 5.5% in Q2 of fiscal year 2026 to 1%–2% in the second half, with further moderation by Q4. DIY transaction counts also declined by low single digits during Q2, amid weather sensitivity and pressure from fuel prices on consumers. In addition, SG&A expenses per store increased 4.8% in Q2, requiring expense moderation to achieve the targeted annual range of 3.5%–4%.
The company opened 110 net new stores during the first half of fiscal year 2026 across 31 U.S. states, Puerto Rico, Mexico, and Canada. It targets 225–235 net new store openings for the full year, supported by a network of approximately 6,700 stores. The new 690,000-square-foot Atlanta distribution center also supports expansion in the southeastern United States and import-processing capacity.
