Revenue and profitability trends
- Revenue: USD 4,136,924,000; YoY +4.04%; QoQ +1.01%. Gross profit: USD 2,121,485,000; gross margin 51.28% (0.5128). Operating income: USD 741,466,000; operating margin 17.92% (0.1793). Net income: USD 538,485,000; net margin 13.02% (0.1302). EPS (diluted): USD 0.6230–0.6265 range (reported USD 0.6265).
- EBITDA: USD 864,139,000; EBITDA margin 20.89% (0.2089). EBIT to revenue: 17.93%.
- Cash flow: Operating cash flow USD 755,120,000; capex USD -286,951,000; free cash flow USD 468,169,000. Net change in cash USD 61,003,000; cash balance USD 191,248,000 at period end.
Balance sheet and liquidity
- Total assets: USD 15,293,875,000; total liabilities: USD 16,651,331,000; total stockholders’ equity: USD -1,357,456,000. Net debt: USD 7,912,571,000; debt total: USD 8,103,819,000.
- Current ratio: 0.708x; quick ratio: 0.101x; cash ratio: 0.0225x. These liquidity metrics indicate tighter near-term liquidity and working capital pressure, despite strong operating cash flow.
- Working capital dynamics: inventories USD 5,172,436,000; receivables USD 522,089,000; accounts payables USD 6,535,532,000; DSO 11.36 days; DIO 230.98 days; DPO 291.85 days; CCC approximately -49.51 days, signaling favorable supplier terms and extended payables relative to receivables and inventory.
- Leverage and equity: total debt to capital ratio around 1.20x; price-to-book and price-to-book-value appear negative given negative equity, which presents a high hurdle to balance sheet-driven valuation frameworks.
Valuation and peer context
- Price to sales: ~19.84x; price to forward earnings implied by current period P/E around 38.11x; price-to-free cash flows ~175x; enterprise value multiple around 104x. The negative book value distorts traditional book-based multiples.
- Inventory and turns: inventory turnover of 0.39x (times per year) suggests a high absolute inventory level or elongated turnover relative to sales; however, the CCC remains negative due to payables terms, mitigating some working capital concerns in the short term.
- Compared to peers in the provided data set, gross margins at OReilly (≈51.3%) appear materially stronger than several listed peers (examples with gross margins in the 12–37% range), though cross-segment comparability is limited. Other metrics such as debt levels, liquidity, and equity position diverge notably across the peer group, underscoring the need for company-specific context when benchmarking.
Sustainability of performance
- The QQ1 2025 metrics demonstrate a robust revenue trajectory and solid cash generation, complemented by disciplined capital allocation (FCF generation and stock repurchases). Yet the negative equity and high leverage raise questions about financial flexibility in stress scenarios and the capacity to sustain buybacks or fund growth without alternative financing sources.