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O'Reilly AutomotiveMEX:ORLY 94 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates MEX:ORLY with a GF Score™ of 94/100 and a GF Value™ of MXN1,610.13 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,284 Vehicles & Parts companies, O'Reilly Automotive ranks better than 99.92% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. O'Reilly Automotive's annualized net income for the quarter that ended in Mar. 2026 was MXN43,580 Mil. O'Reilly Automotive's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN-34,268 Mil. Therefore, O'Reilly Automotive's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for O'Reilly Automotive's Return-on-Tangible-Equity or its related term are showing as below:
MEX:ORLY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 101.44 Med: 211.38 Max: 321.32
Current: Negative Tangible Equity
During the past 13 years, O'Reilly Automotive's highest Return-on-Tangible-Equity was 321.32%. The lowest was 101.44%. And the median was 211.38%.
MEX:ORLY's Return-on-Tangible-Equity is ranked better than 99.92% of 1284
companies
in the Vehicles & Parts industry
Industry Median: 7.48
vs MEX:ORLY: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
O'Reilly Automotive Return-on-Tangible-Equity Related Terms
O'Reilly Automotive Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for O'Reilly Automotive's Return-on-Tangible-Equity 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.
MEX:ORLY vs AZO, GPC, BWA: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, O'Reilly Automotive's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, O'Reilly Automotive's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
O'Reilly Automotive (MEX:ORLY) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on O'Reilly Automotive and its competitors. Over the past decade, O'Reilly Automotive's Return-on-Tangible-Equity has ranged from 101.44 to 321.32. According to the industry distribution chart, O'Reilly Automotive ranks #1 out of 1284 companies in the Vehicles & Parts industry, placing it in the top 0.099999999999994%.
Is O'Reilly Automotive's Return-on-Tangible-Equity too high?
O'Reilly Automotive's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 101.44 to a high of 321.32. Based on the distribution chart, O'Reilly Automotive ranks #1 out of 1284 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 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does O'Reilly Automotive's Return-on-Tangible-Equity compare to AZO and GPC?
According to the Vehicles & Parts industry distribution chart, O'Reilly Automotive ranks #1 out of 1284 companies for Return-on-Tangible-Equity. This places O'Reilly Automotive in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.48. Historically, O'Reilly Automotive's own Return-on-Tangible-Equity has ranged from 101.44 to 321.32 over the past decade. 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-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.48, based on 1,284 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on O'Reilly Automotive and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.48 — 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-Equity is Negative Tangible Equity%. 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 (MEX:ORLY) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN1,610.13, compared to a current price of MXN1,450.00 — trading 9.9% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. O'Reilly Automotive's overall GF Score™ is 94/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For O'Reilly Automotive (MEX:ORLY), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 (MEX:ORLY) Overvalued in 2026?
Based on GuruFocus' analysis, O'Reilly Automotive stock appears to be undervalued.
The current stock price of MXN1,450.00 is trading 9.9% below its estimated GF Value™ of MXN1,610.13.
GuruFocus considers O'Reilly Automotive to be Modestly Undervalued.
No single metric tells the full story. See the MEX:ORLY 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.
94GF Score
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