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O'Reilly AutomotiveLTS:0KAB +5.70%91 Return-on-Tangible-Asset is 15.34% as of Mar. 2026, which is 12% below its 10-year median of 17.53. GuruFocus rates LTS:0KAB with a GF Score™ of 91/100 and a GF Value™ of $96.03 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,330 Vehicles & Parts companies, O'Reilly Automotive ranks better than 96.69% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. O'Reilly Automotive's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,417 Mil. O'Reilly Automotive's average total tangible assets for the quarter that ended in Mar. 2026 was $15,751 Mil. Therefore, O'Reilly Automotive's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 15.34%.
The historical rank and industry rank for O'Reilly Automotive's Return-on-Tangible-Asset or its related term are showing as below:
LTS:0KAB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 16.41 Med: 17.53 Max: 20.09
Current: 17.11
During the past 13 years, O'Reilly Automotive's highest Return-on-Tangible-Asset was 20.09%. The lowest was 16.41%. And the median was 17.53%.
LTS:0KAB's Return-on-Tangible-Asset is ranked better than 96.69% of 1330
companies
in the Vehicles & Parts industry
Industry Median: 3.165
vs LTS:0KAB: 17.11
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
O'Reilly Automotive Return-on-Tangible-Asset Related Terms
O'Reilly Automotive Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for O'Reilly Automotive's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0KAB vs AZO, GPC, BWA: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, O'Reilly Automotive's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
O'Reilly Automotive Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, O'Reilly Automotive's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.34% mean?
O'Reilly Automotive (LTS:0KAB) has a Return-on-Tangible-Asset of 15.34% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on O'Reilly Automotive and its competitors. This is 12% below median its historical median of 17.53. Over the past decade, O'Reilly Automotive's Return-on-Tangible-Asset has ranged from 16.41 to 20.09. According to the industry distribution chart, O'Reilly Automotive ranks #44 out of 1330 companies in the Vehicles & Parts industry, placing it in the top 3.3%.
Is O'Reilly Automotive's Return-on-Tangible-Asset too high?
O'Reilly Automotive's current Return-on-Tangible-Asset of 15.34% is 12% below median its 10-year median of 17.53. Over the past 10 years, this metric has ranged from a low of 16.41 to a high of 20.09. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.17. O'Reilly Automotive's value of 15.34% is 384.7% above this industry median. Based on the distribution chart, O'Reilly Automotive ranks #44 out of 1330 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, O'Reilly Automotive has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does O'Reilly Automotive's Return-on-Tangible-Asset compare to AZO and GPC?
According to the Vehicles & Parts industry distribution chart, O'Reilly Automotive ranks #44 out of 1330 companies for Return-on-Tangible-Asset. This places O'Reilly Automotive in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.17. O'Reilly Automotive's value of 15.34% is 384.7% above this benchmark. Historically, O'Reilly Automotive's own Return-on-Tangible-Asset has ranged from 16.41 to 20.09 over the past decade. While the company's 10-year median is 17.53 vs. the industry median of 3.17, O'Reilly Automotive has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.17, based on 1,330 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. O'Reilly Automotive's current Return-on-Tangible-Asset of 15.34% is 384.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on O'Reilly Automotive and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. O'Reilly Automotive's current Return-on-Tangible-Asset is 15.34%, which is 12% below median its own 10-year median of 17.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is O'Reilly Automotive stock overvalued right now?
Based on GuruFocus' analysis, O'Reilly Automotive (LTS:0KAB) is currently considered Fairly Valued. The stock's GF Value™ is $96.03, compared to a current price of $91.12 — trading 5.1% below its estimated fair value. The current Return-on-Tangible-Asset is 15.34%, which is 12% below median its 10-year median of 17.53 and 384.7% above the Vehicles & Parts industry median of 3.17. O'Reilly Automotive's overall GF Score™ is 91/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For O'Reilly Automotive (LTS:0KAB), the current Return-on-Tangible-Asset is 15.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is O'Reilly Automotive (LTS:0KAB) Overvalued in 2026?
Based on GuruFocus' analysis, O'Reilly Automotive stock appears to be undervalued.
The current stock price of $91.12 is trading 5.1% below its estimated GF Value™ of $96.03.
GuruFocus considers O'Reilly Automotive to be Fairly Valued.
Key valuation signals for LTS:0KAB:
Return-on-Tangible-Asset: 15.34% (12% below median its 10-year median of 17.53)
GF Value™: $96.03 vs. price of $91.12 (5.1% below fair value)
Industry Position: 384.7% above the Vehicles & Parts median (#44 of 1330)
No single metric tells the full story. See the LTS:0KAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1957, O'Reilly Auto Parts is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories, serving both DIY and professional customers. The company operates nearly 6,600 stores across 48 US states, Puerto Rico, Mexico, and Canada. In fiscal 2025, O'Reilly generated nearly $18 billion in sales, with its dual market strategy yielding a balanced revenue mix, split between retail DIY customers (49%) and professional service orders (49%). The balance of its sales is derived from noncore categories, including wholesale distribution to independent parts distributors, heavy-shop equipment sales, and value-added services.
91GF Score
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