Is ORLY a high-quality business?

AlphaMadera's AlphaQuality grade scores O'Reilly Automotive, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ORLY compares to a Buffett-style quality bar.

What is O'Reilly Automotive, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ORLY based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ORLY a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ORLY - O'Reilly Automotive, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $110.64 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 72.4 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B+ 79.1

5yr Avg ROIC 32.1% 100/100
Operating Margin Trend -0.61 pp/yr 30/100

Capital Efficiency

Weight: 15%

D+ 40.3

5yr Avg ROE 0.0% 10/100
5yr Share-Count CAGR -3.7% 97/100

Growth Quality

Weight: 15%

B+ 77.1

5yr Revenue CAGR 7.5% 72/100
5yr EPS CAGR 8.0% 70/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A 87.7

5yr FCF Margin 14.5% 81/100
5yr FCF/NI Conversion 0.96x 96/100

Balance Sheet

Weight: 20%

A- 82.0

Net Debt / EBITDA 2.08x 68/100
Interest Coverage (EBIT/Int) 14.78x 92/100
Altman Z-Score 3.96 94/100

Stability

Weight: 15%

B- 62.2

EPS Volatility (σ/μ) 0.49 31/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

5 of 5 gurus held; 3 added; 2 trimmed.

Holders: 5
Avg Δ position: +73.9%
New buys: 0
Full exits: 0

Cooperman increased +334%
Greenblatt increased +67%
Akre decreased -42%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.