ORLY Gross Margin Analysis

A gross margin of 51.4% means that after paying the direct costs of the goods sold, the company keeps 51.4% of each revenue dollar to cover other expenses like marketing and R&D.

This sits above the sector median of 46.4%, placing the company in the 58th percentile among sector peers. The year-over-year change is N/A, while the quarter-over-quarter change is -0.2%, slipping from 51.5% to 51.4% in the most recent quarter. The combination of an above-median margin with a slight quarterly decline indicates a comfortable cost position relative to peers, but no current momentum toward improvement. The modest decline adds a minor watch item, yet the level still supports a balanced risk profile. This aligns with the overall NEUTRAL verdict, as the margin neither strengthens nor weakens the case for a more decisive rating.

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