O'Reilly Automotive Inc (ORLY) Stock Analysis
Verdict: HOLD
High-margin moat supports long-term EPS growth, but near-term valuation premium and technical momentum risks warrant patience.
Investment score: 51/100
Analysis as of
Is O'Reilly Automotive Inc stock worth reviewing? AI model thesis
The model views O'Reilly Automotive as a high-quality compounder currently experiencing a valuation and technical reset near 52-week lows.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 72/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 48/100 (weight 15%)
- Insider Sentiment: 25/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
O'Reilly Automotive Inc opportunities and risks
What speaks for ORLY
- Strong defensive demand from aging vehicle fleet
What speaks against ORLY
- Valuation premium relative to primary peer AutoZone
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ORLY | 26.5x | 3.7x | 19.5x | 51.6% | 14.3% | 3.1% |
| CVNA | 22.9x | 2.9x | 533.8x | 19.4% | 6.3% | 1.3% |
| AZO | 19.2x | 2.3x | 13.9x | 51.8% | 12.4% | 3.5% |
| PAG | 15.9x | 0.4x | 13.6x | 16.1% | 2.8% | 4.2% |
| MUSA | 15.5x | 0.4x | 10.6x | 7.3% | 2.9% | 5.7% |
| KMX | 36.7x | 0.3x | 23.8x | 10.2% | 0.8% | 11.9% |
| Peer median | 19.2x | 0.4x | 13.9x | 16.1% | 2.9% | 4.2% |
Frequently asked questions about O'Reilly Automotive Inc (ORLY)
Is ORLY stock a good investment?
The cached TradeMates AI model rates O'Reilly Automotive Inc as HOLD with an investment score of 51/100. The model views O'Reilly Automotive as a high-quality compounder currently experiencing a valuation and technical reset near 52-week lows. This is algorithmic model output, not personal investment advice.
Is ORLY stock a buy?
The TradeMates model verdict for ORLY is HOLD with an investment score of 51/100. Treat this as a model signal to review, not a personal buy recommendation.