{"schemaVersion":1,"research":true,"symbol":"orly","name":"O Reilly Automotive","topic":"moat","path":"/stock/orly/moat","status":"published","version":4,"updatedAt":"2026-10-18T13:09:48.724Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"O’Reilly has a narrow moat from purchasing scale and shared distribution and store infrastructure serving professional and DIY customers. Disclosed inventory breadth, frequent deliveries, professional transaction growth and operating cost leverage support a current advantage beyond margins alone. Realized same-SKU price increases demonstrate cost recovery, but do not establish discretionary premium pricing. Persistent DIY transaction declines, unproven customer switching barriers and missing competitor comparisons limit the case for a wide moat.","advantages":[{"mechanism":"cost_advantage","claim":"Large purchasing volumes support supplier incentives and procurement economies, while serving professional and DIY demand through shared stores and distribution spreads infrastructure costs. Broad distribution-center inventory and frequent deliveries support availability; 2026 operating cost leverage provides demonstrated support for the shared-infrastructure economics. The relative cost advantage is an inference from these disclosed mechanisms and results, rather than a measured comparison with competitors.","durability":"The installed distribution infrastructure, established delivery operations and long operating history support persistence. The issuer reports 33 consecutive years of comparable-store sales increases and profitable growth through 2025, followed by further growth in the first half of 2026. These achievements support durability without proving that competitors cannot replicate the model.","risks":"DIY transactions continued to decline despite higher selling prices. Less frequent repairs pressure demand. Supplier incentives and distribution economics could weaken if purchasing volume falls or operating costs rise faster than sales. Supply and systems interruptions are disclosed possibilities, not demonstrated failures. No named competitor cost or service comparisons establish the size of the advantage.","invalidation":"The thesis would weaken materially if sustained declines in professional transactions accompanied lost purchasing incentives or persistently higher distribution and store costs relative to sales. Repeated inability to pass industry-wide acquisition-cost increases into selling prices, or evidence that competitors match availability at lower delivered cost, would also challenge the advantage. An isolated weak quarter would not establish structural erosion.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8","e9","e10","e11"],"counterEvidenceIds":["e12","e13","e14","e15","e16"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Business / dual-market strategy and shared infrastructure","excerpt":"The execution of this strategy enables us to better compete by targeting a larger base of automotive aftermarket parts consumers, capitalizing on our existing store and distribution infrastructure, operating profitably in both large markets and less densely populated geographic areas that typically attract fewer national chain competitors, and enhancing service levels offered to DIY customers through the offering of a broad inventory and the extensive product knowledge required by professional service provider customers."},{"id":"e2","sourceId":"filing-1","location":"Business / 2025 professional and DIY sales mix","excerpt":"​ In 2025, we derived approximately 50% of our sales from our DIY customers and approximately 50% of our sales from our professional service provider customers."},{"id":"e3","sourceId":"filing-1","location":"Business / purchasing scale and supplier concentration","excerpt":"​ 13 ​ We purchase automotive products in substantial quantities from over 655 suppliers, the five largest of which accounted for approximately 23% of our total purchases in 2025."},{"id":"e4","sourceId":"filing-1","location":"Inflation and Seasonality / historical procurement economies","excerpt":"​ 14 ​ Inflation and Seasonality ​ We have generally been successful in reducing the effects of merchandise cost increases principally by taking advantage of supplier incentive programs, economies of scale resulting from increased volume of purchases, and selective forward buying."},{"id":"e5","sourceId":"filing-1","location":"Business / distribution-center inventory breadth","excerpt":"Our DCs stock, on average, over 156,000 SKUs and most DCs are linked to and have access to multiple other DCs’ inventory."},{"id":"e6","sourceId":"filing-1","location":"Business / distribution delivery frequency","excerpt":"Our DCs provide five-night-a-week delivery, primarily via a Company-owned fleet, to substantially all of our stores."},{"id":"e7","sourceId":"filing-1","location":"Business / metropolitan multiple daily deliveries","excerpt":"In addition, stores within an individual DC’s metropolitan area receive multiple daily deliveries from the DC’s “city counter,” many of which receive this service seven days per week."},{"id":"e8","sourceId":"filing-2","location":"Results of Operations / first-half 2026 store operating cost leverage","excerpt":"The decrease in SG&A as a percentage of sales for the six months ended June 30, 2026, was principally due to leverage of store operating costs on strong comparable store sales, partially offset by inflationary pressure in costs and higher costs relating to medical and casualty insurance programs."},{"id":"e9","sourceId":"filing-3","location":"Compensation Discussion and Analysis / historical operating achievements","excerpt":"2025 Financial and Operating Performance Our Team’s ability to deliver sustained profitable growth is evidenced by our 2025 performance, which represents our 33rd consecutive year of comparable store sales increases and profitable growth since we became a public company in April of 1993."},{"id":"e10","sourceId":"filing-2","location":"Results of Operations / first-half comparable-store sales","excerpt":"Comparable store sales increased 7.0% and 3.9% for the six months ended June 30, 2026 and 2025, respectively."},{"id":"e11","sourceId":"filing-2","location":"Results of Operations / first-half operating income","excerpt":"As a result of the impacts discussed above, operating income for the six months ended June 30, 2026, increased 10% to $1.83 billion (or 19.3% of sales) from $1.66 billion (or 19.1% of sales) for the same period one year ago."},{"id":"e12","sourceId":"filing-2","location":"Results of Operations / professional and DIY transaction trends","excerpt":"Our comparable store sales increases for the three and six months ended June 30, 2026, were driven by an increase in average ticket values for both professional service provider and DIY customers and an increase in transaction counts for professional service provider customers, partially offset by a decrease in transaction counts for DIY customers."},{"id":"e13","sourceId":"filing-2","location":"Results of Operations / repair frequency and ticket-value tradeoff","excerpt":"The resulting decrease in repair frequency creates pressure on customer transaction counts; however, when repairs are needed, the cost of replacement parts is, on average, greater, which is a benefit to average ticket values."},{"id":"e14","sourceId":"filing-1","location":"Risk Factors / dependence on favorable supplier prices and terms","excerpt":"Our business depends on developing and maintaining close relationships with our suppliers and on our suppliers’ ability or willingness to sell quality products to us at favorable prices and terms."},{"id":"e15","sourceId":"filing-1","location":"Risk Factors / possible distribution interruptions","excerpt":"Business interruptions, including from a prolonged public health crisis or pandemic, weather-related events, terrorist activities, war, political or civil unrest, disruption of critical infrastructure systems, or other disasters, or the threat of them, may result in a disruption of operations or the closure of one or more of our DCs or other facilities, or may adversely affect our ability to deliver inventory to our stores on a nightly basis."},{"id":"e16","sourceId":"filing-1","location":"Risk Factors / possible inventory and transaction systems interruptions","excerpt":"If these systems are damaged or fail to function properly, we may experience loss of critical data and interruptions or delays in our ability to manage inventories, deliver product, or process customer transactions."},{"id":"e17","sourceId":"filing-1","location":"Results of Operations / 2025 same-SKU tariff cost pass-through","excerpt":"Average ticket values benefited from increases in average selling prices on a same-SKU basis, as compared to the same period in 2024, driven by increases in acquisition costs of inventory, principally resulting from increased tariffs, which were passed on in selling prices."},{"id":"e18","sourceId":"filing-2","location":"Results of Operations / 2026 realized same-SKU selling-price increases","excerpt":"Average ticket values benefited from increases in average selling prices on a same-SKU basis, as compared to the same period in 2025."},{"id":"e19","sourceId":"filing-2","location":"Results of Operations / first-half gross profit and margin","excerpt":"Gross profit for the six months ended June 30, 2026, increased 9% to $4.86 billion (or 51.5% of sales) from $4.45 billion (or 51.4% of sales) for the same period one year ago."},{"id":"e20","sourceId":"filing-1","location":"Business / professional ordering, delivery and support services","excerpt":"In addition, our professional customer program also offers a proprietary ordering mobile application, business ecommerce platform called www.OReillyPro.com, dedicated Professional Service Specialists in stores, multiple daily deliveries, and access to training opportunities, shop management, maintenance supplies, and the Certified Auto Repair program, which offers professional service providers with the business tools they need to profitably grow and market their business."},{"id":"e21","sourceId":"filing-4","location":"Results of Operations / 2024 professional and DIY transaction trends","excerpt":"Our comparable store sales increase for the year ended December 31, 2024, was driven by an increase in average ticket value for both professional service provider and DIY customers and positive transaction counts from professional service provider customers, partially offset by negative transaction counts from DIY customers."},{"id":"e22","sourceId":"filing-5","location":"Results of Operations / 2023 professional and DIY transaction trends","excerpt":"Our comparable store sales increase for the year ended December 31, 2023, was driven by an increase in average ticket value for both professional service provider and DIY customers and positive transaction counts from professional service provider customers, partially offset by negative transaction counts from DIY customers."},{"id":"e23","sourceId":"filing-2","location":"Liquidity / first-half operating cash flow, capital expenditures and free cash flow","excerpt":"​ 19 The following table identifies cash provided by/(used in) our operating, investing and financing activities for the six months ended June 30, 2026 and 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ June 30, Liquidity: ​ ​ ​ 2026 ​ ​ ​ 2025 Total cash provided by/(used in): ​ ​ ​ ​ Operating activities ​ $ 2,039,412 ​ $ 1,511,966 Investing activities ​ (549,675) ​ (594,998) Financing activities ​ (1,421,650) ​ (850,815) Effect of exchange rate changes on cash ​ ​ 301 ​ ​ 2,215 Net increase in cash and cash equivalents ​ $ 68,388 ​ $ 68,368 ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ $ 552,050 ​ $ 587,685 Free cash flow (1) ​ ​ 1,477,816 ​ ​ 904,008 (1) Calculated as net cash provided by operating activities, less capital expenditures, excess tax benefit from share-based compensation payments, and investment in tax credit equity investments for the period, if applicable."},{"id":"e24","sourceId":"filing-2","location":"Liquidity / tax-payment timing and operating cash-flow changes","excerpt":"​ Operating Activities: The increase in net cash provided by operating activities during the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to the timing of payment for transferrable federal renewable energy tax credits and an increase in operating income, partially offset by a prepaid income taxes position at the end of the current period, versus an increase in a net taxes payable position for the same period in 2025."},{"id":"e25","sourceId":"filing-2","location":"Note 9 / actual first-half share repurchases","excerpt":"10 ​ The following table identifies shares of the Company’s common stock that have been repurchased as part of the Company’s publicly announced share repurchase program for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Shares repurchased ​ 16,702 ​ ​ 6,804 ​ 26,684 ​ ​ 13,273 Average price per share ​ $ 90.40 ​ $ 90.71 ​ $ 91.17 ​ $ 88.65 Total investment ​ $ 1,509,908 ​ $ 617,184 ​ $ 2,432,756 ​ $ 1,176,612 ​ As of June 30, 2026, the Company had $2.0 billion remaining under its share repurchase authorization."},{"id":"e26","sourceId":"filing-2","location":"Liquidity / share repurchases, debt redemption and new borrowings","excerpt":"​ Financing Activities: The increase in net cash used in financing activities during the six months ended June 30, 2026, compared to the same period in 2025, was attributable to an increase in repurchases of our common stock and the redemption of $500 million aggregate principal amount of senior notes, partially offset by the issuance of $850 million aggregate principal amount of senior notes in the current period and net borrowings on the Company’s commercial paper program."},{"id":"e27","sourceId":"filing-2","location":"Liquidity / leverage, fixed-charge coverage and non-GAAP reconciliations","excerpt":"20 ​ The table below outlines the calculations of the consolidated fixed charge coverage ratio and consolidated leverage ratio covenants, as defined in the Credit Agreement governing the Revolving Credit Facility, for the twelve months ended June 30, 2026 and 2025 (dollars in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Twelve Months Ended ​ ​ ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 GAAP net income ​ $ 2,650,374 ​ $ 2,423,674 Add: Interest expense ​ 252,779 ​ 225,470 ​ Rent expense (1) ​ 505,125 ​ 472,425 ​ Provision for income taxes ​ 748,155 ​ 655,250 ​ Depreciation expense ​ 533,595 ​ 480,914 ​ Amortization expense ​ 4,119 ​ 5,252 ​ Non-cash share-based compensation ​ 33,815 ​ 33,514 Non-GAAP EBITDAR ​ $ 4,727,962 ​ $ 4,296,499 ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ 252,779 ​ $ 225,470 ​ Capitalized interest ​ 15,421 ​ 16,137 ​ Rent expense (1) ​ 505,125 ​ 472,425 Total fixed charges ​ $ 773,325 ​ $ 714,032 ​ ​ ​ ​ ​ ​ ​ ​ Consolidated fixed charge coverage ratio ​ 6.11 ​ 6.02 ​ ​ ​ ​ ​ ​ ​ ​ GAAP debt ​ $ 7,014,543 ​ $ 5,823,744 Add: Stand-by letters of credit ​ 197,809 ​ 162,289 ​ Unamortized discount and debt issuance costs ​ 30,457 ​ 26,256 ​ Five-times rent expense ​ 2,525,625 ​ 2,362,125 Non-GAAP adjusted debt ​ $ 9,768,434 ​ $ 8,374,414 ​ ​ ​ ​ ​ ​ ​ ​ Consolidated leverage ratio ​ 2.07 ​ 1.95 (1) The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per Accounting Standard Codification 842 (“ASC 842”) the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2026 and 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Twelve Months Ended ​ ​ June 30, ​ ​ 2026 ​ 2025 Total lease cost, per ASC 842 ​ ​ ​ $ 606,667 ​ $ 570,733 Less: Variable non-contract operating lease components, related to property taxes and insurance ​ 101,542 ​ 98,308 Rent expense ​ $ 505,125 ​ $ 472,425 ​ The table below outlines the calculation of Free cash flow and reconciles Free cash flow to Net cash provided by operating activities, the most directly comparable GAAP financial measure, for the six months ended June 30, 2026 and 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Cash provided by operating activities ​ $ 2,039,412 ​ $ 1,511,966 Less: Capital expenditures ​ 552,050 ​ 587,685 ​ Excess tax benefit from share-based compensation payments ​ 9,546 ​ 20,273 Free cash flow ​ $ 1,477,816 ​ $ 904,008 ​ Free cash flow, the consolidated fixed charge coverage ratio, and the consolidated leverage ratio discussed and presented in the tables above are not derived in accordance with United States generally accepted accounting principles (“GAAP”)."},{"id":"e28","sourceId":"filing-2","location":"Results of Operations / actual net new store openings","excerpt":"We opened 51 and 110 net, new stores during the three and six months ended June 30, 2026, respectively, compared to opening 67 and 105 net, new stores during the three and six months ended June 30, 2025, respectively."},{"id":"e29","sourceId":"filing-3","location":"Pay versus Performance / compensation-linked performance measures","excerpt":"​ MOST IMPORTANT PERFORMANCE MEASURES Comparable Store Sales Operating Income Return on Invested Capital ​ ​ ​ ​ ​ ​ O’REILLY AUTOMOTIVE, INC."},{"id":"e30","sourceId":"filing-3","location":"Executive Compensation / actual option award exercisability schedule","excerpt":"The “Option Awards” column refers to the option awards granted to the NEOs, which become exercisable with respect to 25% of the covered shares one year from the date of grant; 50% exercisable two years from the date of grant; 75% exercisable three years from the date of grant and the remainder become exercisable four years from the date of grant."},{"id":"e31","sourceId":"filing-3","location":"Executive Compensation / option awards granted in 2023–2025","excerpt":"The amounts shown in the above table reflect the grant date fair value of stock option awards granted during 2025, 2024, and 2023."},{"id":"e32","sourceId":"filing-3","location":"Executive Compensation / change-in-control vesting without termination","excerpt":"The unvested stock option grants and unvested restricted share awards vest pursuant to the terms of the incentive plans upon a Change in Control irrespective of a termination of employment."},{"id":"e33","sourceId":"filing-3","location":"Corporate Governance Practices / separate CEO and chairman","excerpt":"· Chief executive officer and Chairman are separate positions."},{"id":"e34","sourceId":"filing-3","location":"Corporate Governance Practices / independent committees","excerpt":"· Committees made up entirely of Independent Directors."},{"id":"e35","sourceId":"filing-3","location":"Corporate Governance Practices / single share class and voting rights","excerpt":"· One class of outstanding shares with each share entitled to one vote."},{"id":"e36","sourceId":"filing-3","location":"Corporate Governance Practices / compensation clawback policy","excerpt":"· Clawback policy requiring disgorgement of erroneously awarded compensation."},{"id":"e37","sourceId":"filing-3","location":"Board of Directors / actual independent-director committee attendance","excerpt":"During 2025, each independent Director attended 100% of the total number of meetings held by all committees of the Board for which he or she served during his or her terms of service."},{"id":"e38","sourceId":"filing-1","location":"Results of Operations / 2025 gross profit and margin","excerpt":"32 ​ ​ Gross Profit: Gross profit for the year ended December 31, 2025, increased 7% to $9.17 billion (or 51.6% of sales) from $8.55 billion (or 51.2% of sales) for the same period in 2024."},{"id":"e39","sourceId":"filing-1","location":"Business / supplier commitments and alternative sourcing experience","excerpt":"​ We have no long-term contracts with material purchase commitments with any of our suppliers, nor have we experienced difficulty in obtaining satisfactory alternative supply sources for automotive parts."}],"changes":["Retain the previous narrow-moat verdict; the supplied evidence supports purchasing and infrastructure advantages without establishing superior economics against named competitors.","Make first-half 2026 corroboration explicit: comparable-store sales increased 7.0%, professional transactions increased, same-SKU selling prices rose and store operating costs benefited from sales leverage.","Expand management assessment using actual proxy compensation and governance disclosures. Balance operating execution against repurchases exceeding first-half free cash flow and increased borrowing.","Make persistent DIY transaction declines and change-in-control equity acceleration explicit counterweights. No stronger claim of discretionary pricing power or customer lock-in is warranted."],"limitations":["Assessment uses only the supplied passages. Source dates are filing dates: the latest supplied report was filed August 7, 2026 and covers the period ended June 30, 2026; it does not establish developments afterward.","No automotive competitor is named as a competitor in the supplied passages. Competitor arrays are therefore empty; companies mentioned as acquisition targets, directors’ other affiliations, auditors or financing counterparties do not establish competitor coverage.","Procurement economies, service superiority and difficult replication are issuer descriptions. Reported operating achievements corroborate the business model, but do not measure the relative delivered-cost advantage or prove market-share gains.","Professional transaction growth is indirect evidence of repeat demand, not a customer-cohort retention rate. Ordering platforms and service relationships do not establish material switching costs, exclusivity or contractual customer dependency.","Same-SKU selling-price increases establish realized pricing outcomes; 2025 explicitly connects them to acquisition-cost increases. Discretionary premiums, price elasticity and customer pricing-contract restrictions are not disclosed.","The proxy provides actual compensation arrangements and governance practices, but the supplied passages do not establish executive beneficial ownership or compliance with executive ownership guidelines. Proposed shareholder votes are not treated as completed approvals.","Future distribution projects and store-opening targets are potential enhancements, not completed advantages. Generic disruption risks are not treated as realized erosion."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Shared infrastructure serves two substantial customer groups, purchasing scale supports procurement economies, and broad inventory with frequent deliveries provides a concrete operating mechanism. Realized store cost leverage corroborates the structure. Relative competitor costs remain unmeasured.","evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8"]},{"criterion":"durability","grade":3,"rationale":"The installed delivery infrastructure and reported 33-year record of comparable-store sales increases and profitable growth, followed by first-half 2026 growth, demonstrate persistence. This is strong historical evidence, not proof of permanent superiority or exceptional resistance to replication.","evidenceIds":["e5","e6","e9","e10","e11"]},{"criterion":"customer_dependency","grade":2,"rationale":"Professional ordering, frequent delivery and business-support services provide useful workflow integration. Professional transaction growth across multiple periods indirectly supports ongoing demand, but DIY transactions declined and neither exclusive purchasing nor substantial switching costs is established.","evidenceIds":["e20","e12","e21","e22"]},{"criterion":"erosion_resilience","grade":3,"rationale":"Actual cost pass-through, continued professional transaction growth, stable to improving gross margins and operating leverage demonstrate resilience during recent cost pressure. Persistent DIY weakness is a realized counterweight; distribution and systems risks remain possibilities rather than observed breakdowns.","evidenceIds":["e17","e18","e19","e38","e8","e12","e15","e16"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"The issuer reports actual 2025 same-SKU price increases passing through tariff-related acquisition costs and further same-SKU increases in 2026. Professional transaction growth alongside those increases supports successful realization. Evidence supports cost recovery, with no demonstrated discretionary premium.","evidenceIds":["e17","e18","e12"]},{"criterion":"retention","grade":2,"rationale":"Professional transactions increased in 2023, 2024 and the first half of 2026, supporting repeat-demand resilience indirectly. DIY transactions declined across those periods. These aggregate outcomes cannot distinguish retained customers from newly acquired customers or isolate the effect of pricing.","evidenceIds":["e22","e21","e12","e20"]},{"criterion":"margin_resilience","grade":3,"rationale":"Gross margin increased from 51.2% to 51.6% in 2025 and from 51.4% to 51.5% in the first half of 2026. First-half operating margin also increased despite disclosed cost pressures. Together with actual price pass-through, these results support resilience; margins alone do not establish the moat.","evidenceIds":["e38","e19","e11","e8","e17"]},{"criterion":"contractual_freedom","grade":null,"rationale":"Observed retail price changes establish practical repricing, but the passages do not disclose customer pricing agreements, price-reset rights or restrictions on sales terms. Absence of long-term material supplier purchase commitments concerns sourcing and does not establish freedom under customer contracts.","evidenceIds":["e17","e18","e39"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"First-half 2026 operating cash flow of $2.04 billion supported $552 million of capital expenditure and actual store expansion. However, $2.43 billion of repurchases exceeded disclosed free cash flow of $1.48 billion, borrowing increased and the covenant leverage ratio rose from 1.95 to 2.07 year over year. Cash-flow improvement partly reflects tax-payment timing. This is mixed discipline evidence; repurchase value creation and incremental investment returns are unproven.","evidenceIds":["e23","e24","e25","e26","e27","e28"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Actual option awards with four-year staged exercisability and compensation measures including comparable-store sales, operating income and return on invested capital support alignment. Automatic equity vesting on a change in control without employment termination weakens that alignment. Executive ownership and the detailed balance of compensation measures are not established by these passages.","evidenceIds":["e29","e30","e31","e32"]},{"criterion":"execution","grade":3,"rationale":"The reported long history of comparable-store sales and profitable growth is corroborated by first-half 2026 comparable-store sales growth of 7.0%, operating income growth of 10% and 110 net new stores. Professional transaction growth supports execution indirectly; continued DIY declines limit a uniformly strong assessment across customers. These are company operating outcomes, not proof of individual managerial causation.","evidenceIds":["e9","e10","e11","e28","e12"]},{"criterion":"governance","grade":3,"rationale":"Separate CEO and chairman roles, independent committees, equal voting rights, a clawback policy and full independent-director committee attendance provide concrete evidence of functioning governance arrangements. Change-in-control equity acceleration is an adverse feature. These disclosures support a strong assessment without establishing exceptional oversight effectiveness.","evidenceIds":["e33","e34","e35","e36","e37","e32"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"089948c31f2c4830b9d7945349fa211ecf6410a5a737459416230ddae9b1f829","updatedAt":"2026-10-18T13:09:48.724Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/898173/000089817326000009/orly-20251231x10k.htm","publishedAt":"2026-02-27","sha256":"efcab0241205e7a13a167413a0579ae960a4d8f02a13c49f587cda9ba93c381e","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/898173/000089817326000045/orly-20260630x10q.htm","publishedAt":"2026-08-07","sha256":"a96a1227c659111acd93a6bb219cb60bfb5f919ad3af99e5e03e7dc144da4697","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/898173/000089817326000014/orly-20251231xdef14a.htm","publishedAt":"2026-03-27","sha256":"3867748299d8b4028972376ec422628685d5f8151d88fd7de13077e4c9b9c5ab","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/898173/000089817325000008/orly-20241231x10k.htm","publishedAt":"2025-02-28","sha256":"6f1668db5061deffb361f25cee3f6ab74eef2f379e9ded84cc34ab82af0c662d","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/898173/000089817324000009/orly-20231231x10k.htm","publishedAt":"2024-02-28","sha256":"1c4bdb399087f26fb156bdded6bc6992ef307e1b7df42c8ff83d3b7bda3d85a5","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/898173/000089817326000027/orly-20260331x10q.htm","publishedAt":"2026-05-08","sha256":"fdd562c68da884297c96ba2b720920bb86f5b1479ecc85b2d4c35f207ce22fa3","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:a5be0ccb7b51ed8ecdcad58791505d9c43a89b48d8238ff83e9a4f2e41a60895","usage":{"input_tokens":88936,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":4443,"reasoning_output_tokens":145},"basisSupplement":{"previousHash":"31a5e6b69d92f8b2629fbfacc8ac85e6bb06cbcbe3f9be0f97f08ce193f917c2","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":52.67241280345101,"operating_margin":21.888232679898042,"roic":null,"fcf_margin":20.742404294018343,"sbc_revenue":0.18500006340243896},"issues":{"pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","ev_sales":"Reported borrowing balances are unavailable in the extracted statements for this period.","ev_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roiic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_equity":"Equity is zero or negative, so this ratio is undefined.","debt_assets":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_fcf":"Reported borrowing balances are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":51.226771113668,"operating_margin":20.50325957365304,"roic":null,"fcf_margin":17.938467132921485,"sbc_revenue":0.18361038899753362},"issues":{"pb":"Equity attributable to owners is zero or negative, so this ratio is undefined.","ev_sales":"Reported borrowing balances are unavailable in the extracted statements for this period.","ev_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roiic":"Reported borrowing balances are unavailable in the extracted statements for this period.","roe":"Average equity attributable to owners is zero or negative, so this ratio is undefined.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_equity":"Equity is zero or negative, so this ratio is undefined.","debt_assets":"Reported borrowing balances are unavailable in the extracted statements for this period.","net_debt_ebitda":"Reported borrowing balances are unavailable in the extracted statements for this period.","debt_fcf":"Reported borrowing balances are unavailable in the extracted statements for this period."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":51.25648152539961,"operating_margin":20.15131306423817,"roic":null,"fcf_margin":12.824360859460226,"sbc_revenue":0.17398535945232335},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; 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