Latest Ratios: P/E Ratio 28.9x · EV/EBITDA 20.0x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $71.2B | $78.1B | $66.3B | $55.2B | $52.2B | $46.8B | $32.1B | $32.5B | $27.0B | $20.5B | $25.6B |
| Enterprise Value | $79.5B | $86.4B | $74.1B | $62.8B | $58.7B | $52.3B | $37.8B | $38.3B | $30.4B | $23.4B | $27.4B |
| P/E Ratio → | 28.92 | 30.71 | 29.17 | 23.55 | 24.05 | 21.60 | 18.28 | 23.38 | 20.32 | 18.02 | 24.75 |
| P/S Ratio | 4.00 | 4.39 | 3.97 | 3.49 | 3.62 | 3.51 | 2.77 | 3.20 | 2.83 | 2.28 | 2.98 |
| P/B Ratio | — | — | — | — | — | — | 228.82 | 81.72 | 76.31 | 31.40 | 15.76 |
| P/FCF | 44.68 | 49.00 | 32.72 | 27.22 | 20.20 | 16.94 | 13.54 | 30.05 | 22.06 | 21.87 | 24.79 |
| P/OCF | 25.77 | 28.27 | 21.74 | 18.19 | 16.59 | 14.60 | 11.31 | 19.01 | 15.62 | 14.61 | 16.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.86 | 4.43 | 3.97 | 4.07 | 3.93 | 3.26 | 3.77 | 3.19 | 2.61 | 3.19 |
| EV / EBITDA | 20.01 | 21.74 | 19.95 | 17.44 | 17.67 | 16.06 | 13.81 | 17.46 | 14.64 | 11.96 | 14.28 |
| EV / EBIT | 22.97 | 24.85 | 22.67 | 19.57 | 19.84 | 17.88 | 15.57 | 19.84 | 16.72 | 13.56 | 16.03 |
| EV / FCF | — | 54.21 | 36.56 | 30.95 | 22.69 | 18.93 | 15.94 | 35.44 | 24.83 | 25.00 | 26.48 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.6% | 51.6% | 51.2% | 51.3% | 51.2% | 52.7% | 52.4% | 53.1% | 52.8% | 52.6% | 52.5% |
| Operating Margin | 19.5% | 19.5% | 19.5% | 20.2% | 20.6% | 22.0% | 20.9% | 18.9% | 19.0% | 19.2% | 19.8% |
| Net Profit Margin | 14.3% | 14.3% | 14.3% | 14.8% | 15.1% | 16.2% | 15.1% | 13.7% | 13.9% | 12.6% | 12.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | 5863.6% | 651.9% | 370.4% | 263.1% | 99.4% | 57.8% |
| ROA | 16.2% | 16.2% | 16.6% | 17.7% | 17.8% | 18.6% | 15.7% | 14.9% | 17.0% | 15.3% | 15.0% |
| ROIC | 37.2% | 37.2% | 39.8% | 42.7% | 41.1% | 39.0% | 30.1% | 29.0% | 37.2% | 37.2% | 38.6% |
| ROCE | 48.2% | 48.2% | 50.7% | 54.2% | 51.9% | 48.1% | 38.5% | 37.2% | 45.3% | 44.7% | 45.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | 43.95 | 14.75 | 9.66 | 4.56 | 1.16 |
| Debt / EBITDA | 2.14 | 2.14 | 2.13 | 2.18 | 1.97 | 1.80 | 2.25 | 2.67 | 1.65 | 1.52 | 0.98 |
| Net Debt / Equity | — | — | — | — | — | — | 40.63 | 14.65 | 9.57 | 4.49 | 1.07 |
| Net Debt / EBITDA | 2.09 | 2.09 | 2.10 | 2.10 | 1.94 | 1.69 | 2.08 | 2.65 | 1.63 | 1.50 | 0.91 |
| Debt / FCF | — | 5.21 | 3.84 | 3.73 | 2.49 | 1.99 | 2.40 | 5.39 | 2.77 | 3.13 | 1.68 |
| Interest Coverage | 14.78 | 14.78 | 14.68 | 15.90 | 18.74 | 20.22 | 15.07 | 13.79 | 14.87 | 18.93 | 24.08 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.77 | 0.77 | 0.71 | 0.73 | 0.71 | 0.77 | 0.86 | 0.86 | 0.91 | 0.93 | 0.96 |
| Quick Ratio | 0.12 | 0.12 | 0.09 | 0.12 | 0.10 | 0.14 | 0.16 | 0.08 | 0.09 | 0.11 | 0.14 |
| Cash Ratio | 0.02 | 0.02 | 0.02 | 0.04 | 0.02 | 0.06 | 0.09 | 0.01 | 0.01 | 0.01 | 0.04 |
| Asset Turnover | — | 1.08 | 1.12 | 1.14 | 1.14 | 1.14 | 1.00 | 0.95 | 1.19 | 1.19 | 1.19 |
| Inventory Turnover | 1.50 | 1.50 | 1.60 | 1.65 | 1.61 | 1.71 | 1.51 | 1.38 | 1.41 | 1.41 | 1.47 |
| Days Sales Outstanding | — | 11.28 | 10.83 | 11.90 | 11.91 | 10.56 | 10.39 | 10.59 | 10.34 | 11.89 | 11.87 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.3% | 3.4% | 4.2% | 4.2% | 4.6% | 5.5% | 4.3% | 4.9% | 5.5% | 4.0% |
| FCF Yield | 2.2% | 2.0% | 3.1% | 3.7% | 5.0% | 5.9% | 7.4% | 3.3% | 4.5% | 4.6% | 4.0% |
| Buyback Yield | 2.9% | 2.7% | 3.1% | 5.7% | 6.3% | 5.3% | 6.5% | 4.4% | 6.4% | 10.6% | 5.9% |
| Total Shareholder Yield | 2.9% | 2.7% | 3.1% | 5.7% | 6.3% | 5.3% | 6.5% | 4.4% | 6.4% | 10.6% | 5.9% |
| Shares Outstanding | — | $856M | $839M | $871M | $928M | $994M | $1.1B | $1.1B | $1.2B | $1.3B | $1.4B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ORLY stock.
O'Reilly Automotive, Inc.'s current P/E ratio is 28.9x. The historical average is 22.0x. This places it at the 90th percentile of its historical range.
O'Reilly Automotive, Inc.'s current EV/EBITDA is 20.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.0x.
Based on historical data, O'Reilly Automotive, Inc. is trading at a P/E of 28.9x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
O'Reilly Automotive, Inc. has 51.6% gross margin and 19.5% operating margin. Operating margin between 10-20% is typical for established companies.
O'Reilly Automotive, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Wage inflation compressing margins
Metrics are mathematically derived from official filings.
Margin Resilience Amid Cost Pressures
Gross margin held at 51.4% in Q2 2026, up 70 bps year-over-year, while operating margin expanded to 20.2%, reflecting pricing power and private-label mix, per financial statements.
The 70 basis point gross margin expansion to 51.4% suggests the company is successfully passing through input cost inflation and benefiting from a higher mix of private-label products. Operating margin of 20.2% in Q2 2026, up from 20.2% a year earlier, indicates that despite wage and insurance cost pressures, the company has maintained its earning power. However, the EPS miss versus consensus suggests that bottom-line conversion is being tempered by SG&A inflation, which investors should monitor for potential margin compression in coming quarters.
ROIC Stability Masks Buyback Distortion
ROIC remained stable at 9.9% in Q2 2026, consistent with the prior year's 10.2%, despite negative equity from aggressive buybacks, as reported in quarterly filings.
ROIC has hovered in the 8-11% range over the past ten quarters, indicating a stable return on invested capital. This stability is notable given the significant debt-funded share repurchases, which have driven shareholders' equity deeply negative. The stability suggests that the company's core operations are generating consistent returns, but the negative equity complicates traditional ROE analysis. Investors should focus on ROIC as a more reliable measure of operational efficiency, as it is less distorted by the capital structure.
Negative CCC Reflects Supplier Financing
Cash conversion cycle improved to -45 days in Q2 2026, driven by DPO of 280 days versus DIO of 226 days, indicating strong supplier leverage, based on reported figures.
The negative cash conversion cycle of -45 days means that O'Reilly is effectively using supplier financing to fund its inventory, as it pays suppliers well after it sells the parts. DPO of 280 days is exceptionally high, suggesting the company has significant bargaining power with its suppliers. This working capital efficiency is a key driver of the robust free cash flow, which reached $698.9M in Q2 2026. However, the thin current ratio of 0.75 indicates that the company relies heavily on this supplier financing and may face liquidity pressure if payment terms were to tighten.
Leverage Creeps Higher on Buybacks
Debt-to-EBITDA rose to 9.79x in Q2 2026 from 8.00x a year earlier, while interest coverage remained comfortable at 14.01x, per latest balance sheet data.
The increase in debt-to-EBITDA to 9.79x reflects the company's continued reliance on debt to fund its aggressive share repurchase program, with total debt climbing to $9.6B. Despite the higher leverage, interest coverage of 14.01x indicates that earnings comfortably cover interest expenses, suggesting no immediate solvency risk. However, if interest rates remain elevated or operating margins compress due to wage inflation, the cost of debt service could become more burdensome. Investors should monitor the trajectory of leverage, as the negative equity position leaves no buffer for adverse shocks.
Thin Liquidity Relies on Supplier Terms
Current ratio of 0.75 and quick ratio of 0.13 in Q2 2026 indicate a thin liquidity buffer, but negative CCC of -45 days suggests operational cash flow is strong, as reported.
The current ratio of 0.75 and quick ratio of 0.13 are well below the traditional 1.0 threshold, indicating that current liabilities exceed current assets. However, this is largely a function of the company's negative cash conversion cycle, where it collects cash from sales before paying suppliers. The quick ratio of 0.13 is particularly low, reflecting minimal cash and receivables relative to current liabilities, but this is mitigated by the company's ability to generate strong operating cash flow, which exceeded net income by 41% in Q2 2026. Under a severe demand shock, the thin liquidity position could become a constraint, but the company's historical resilience suggests it can manage through cycles.
Misapplied ROE in Negative Equity Context
ROE is commonly misapplied to O'Reilly because negative equity from buybacks makes the metric meaningless; ROIC of 9.9% is a more reliable measure, per financial statements.
The most commonly misapplied ratio for O'Reilly is Return on Equity (ROE), as the company's aggressive share repurchases have driven shareholders' equity to -$1.8B, making ROE negative or undefined. Analysts should instead use Return on Invested Capital (ROIC), which at 9.9% in Q2 2026 provides a clearer picture of operational efficiency. Additionally, the high P/E of 30.0 and EV/EBITDA of 20.68 suggest the market is pricing in continued growth, but investors should adjust for the buyback-driven EPS growth, which may overstate underlying earnings growth. A more appropriate valuation metric would be EV/EBIT or EV/EBITDA, which are less distorted by capital structure.