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O'Reilly AutomotiveORLY +0.72%88 ROC (Joel Greenblatt) % is 38.59% as of Mar. 2026, which is 17% below its 10-year median of 46.50. GuruFocus rates ORLY with a GF Score™ of 88/100 and a GF Value™ of $95.36 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,330 Vehicles & Parts companies, O'Reilly Automotive ranks better than 90.45% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. O'Reilly Automotive's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 38.59%.
The historical rank and industry rank for O'Reilly Automotive's ROC (Joel Greenblatt) % or its related term are showing as below:
ORLY'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 40.57 Med: 46.5 Max: 57.08
Current: 42.06
During the past 13 years, O'Reilly Automotive's highest ROC (Joel Greenblatt) % was 57.08%. The lowest was 40.57%. And the median was 46.50%.
ORLY's ROC (Joel Greenblatt) % is ranked better than 90.45% of 1330
companies
in the Vehicles & Parts industry
Industry Median: 12.045
vs ORLY: 42.06
O'Reilly Automotive's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -0.40% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
O'Reilly Automotive ROC (Joel Greenblatt) % Related Terms
O'Reilly Automotive ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for O'Reilly Automotive's ROC (Joel Greenblatt) % 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.
ORLY vs AZO, GPC, BWA: ROC (Joel Greenblatt) % Comparison
For the Auto Parts subindustry, O'Reilly Automotive's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, O'Reilly Automotive's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where O'Reilly Automotive's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 38.59% mean?
O'Reilly Automotive (ORLY) has a ROC (Joel Greenblatt) % of 38.59% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on O'Reilly Automotive and its competitors. This is 17% below median its historical median of 46.50. Over the past decade, O'Reilly Automotive's ROC (Joel Greenblatt) % has ranged from 40.57 to 57.08. According to the industry distribution chart, O'Reilly Automotive ranks #127 out of 1330 companies in the Vehicles & Parts industry, placing it in the top 9.5%.
Is O'Reilly Automotive's ROC (Joel Greenblatt) % too high?
O'Reilly Automotive's current ROC (Joel Greenblatt) % of 38.59% is 17% below median its 10-year median of 46.50. Over the past 10 years, this metric has ranged from a low of 40.57 to a high of 57.08. The Vehicles & Parts industry median ROC (Joel Greenblatt) % is 12.05. O'Reilly Automotive's value of 38.59% is 220.4% above this industry median. Based on the distribution chart, O'Reilly Automotive ranks #127 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 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does O'Reilly Automotive's ROC (Joel Greenblatt) % compare to AZO and GPC?
According to the Vehicles & Parts industry distribution chart, O'Reilly Automotive ranks #127 out of 1330 companies for ROC (Joel Greenblatt) %. This places O'Reilly Automotive in the top 10% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 12.05. O'Reilly Automotive's value of 38.59% is 220.4% above this benchmark. Historically, O'Reilly Automotive's own ROC (Joel Greenblatt) % has ranged from 40.57 to 57.08 over the past decade. While the company's 10-year median is 46.50 vs. the industry median of 12.05, 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 ROC (Joel Greenblatt) % for a Vehicles & Parts company?
The median ROC (Joel Greenblatt) % among Vehicles & Parts companies is 12.05, based on 1,330 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. O'Reilly Automotive's current ROC (Joel Greenblatt) % of 38.59% is 220.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on O'Reilly Automotive and its competitors. For the Vehicles & Parts industry, the median ROC (Joel Greenblatt) % is 12.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. O'Reilly Automotive's current ROC (Joel Greenblatt) % is 38.59%, which is 17% below median its own 10-year median of 46.50. 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 (ORLY) is currently considered Fairly Valued. The stock's GF Value™ is $95.36, compared to a current price of $88.61 — trading 7.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 38.59%, which is 17% below median its 10-year median of 46.50 and 220.4% above the Vehicles & Parts industry median of 12.05. O'Reilly Automotive's overall GF Score™ is 88/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For O'Reilly Automotive (ORLY), the current ROC (Joel Greenblatt) % is 38.59% 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 (ORLY) Overvalued in 2026?
Based on GuruFocus' analysis, O'Reilly Automotive stock appears to be undervalued.
The current stock price of $88.61 is trading 7.1% below its estimated GF Value™ of $95.36.
GuruFocus considers O'Reilly Automotive to be Fairly Valued.
Key valuation signals for ORLY:
ROC (Joel Greenblatt) %: 38.59% (17% below median its 10-year median of 46.50)
GF Value™: $95.36 vs. price of $88.61 (7.1% below fair value)
Industry Position: 220.4% above the Vehicles & Parts median (#127 of 1330)
No single metric tells the full story. See the 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.
88GF Score
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