ORLYNEUTRAL

ORLY Gross Margin Analysis

51.4%

Updated 5h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

57th percentile

ORLY

51.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

51.5%(Aug 2026)

→ Stable

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Deep 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.

Frequently Asked Questions

What does the Gross Margin tell investors about ORLY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are ORLY's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), WEC (43.1%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.