Reviewed listing: NASDAQ:ORLY · Analysis dated Oct 14, 2026
It has not been confirmed whether the basis of this analysis still holds today. Read it as a dated earlier assessment; it does not establish a current buying opportunity.
How does the company make money?
O’Reilly sells auto parts, tools, and accessories to repair shops and people who work on their own cars. At the end of June 2026, the company operated 6.695 stores in the United States, Puerto Rico, Mexico, and Canada.
What supports the business?
O’Reilly is growing profitably: in the second quarter of 2026, sales at existing US stores rose 6%, while the operating margin remained around 20%. Growth is therefore not coming solely from new stores.
What could improve?
More repair shop customers and additional locations could further strengthen revenue and earnings. For a more compelling price-to-risk relationship, they would need to generate persistently higher cash surpluses without substantially increasing debt further.
How is the stock price assessed?
This assessment refers to the analysis and its quoted price shown here. It is not a live quote or a personal recommendation to buy.
86.16 USD appear demanding despite the strong business: the price is about 27 times the annual earnings per share expected for 2026. In my cautious valuation, the expected cash surpluses do not yet justify it.
What is the main risk?
The company is spending more on its own shares than it has left after investing in the business, and its debt is increasing. At the same time, some of the revenue growth is based on higher prices, while retail customers are buying less often.
What is the overall assessment?
Strong, profitable business, but 86.16 USD require more sustainable cash generation than the published cash flow range supports under the disclosed assumptions. Rising debt due to extensive share buybacks compounds this economic concern: watch rather than classify it as an opportunity.
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- Original source 1 · api-v4.fcsapi.com
- Original source 2 · data.sec.gov
- Original source 3 · www.sec.gov · Feb 27, 2026
- Original source 4 · corporate.oreillyauto.com · Feb 04, 2026
- Original source 5 · www.sec.gov · Jul 29, 2026
- Original source 6 · www.sec.gov · Aug 07, 2026
- Original source 7 · www.sec.gov
- Original source 8 · corporate.oreillyauto.com