Advance Auto Parts
Market Cap
US$10.5b
Last Updated
2020/08/05 23:35 UTC
Data Sources
Company Financials +
Executive Summary
Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with limited growth.
Similar Companies
Share Price & News
How has Advance Auto Parts's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AAP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.4%
AAP
1.4%
US Specialty Retail
2.6%
US Market
1 Year Return
5.3%
AAP
6.1%
US Specialty Retail
15.4%
US Market
Return vs Industry: AAP underperformed the US Specialty Retail industry which returned 6.6% over the past year.
Return vs Market: AAP underperformed the US Market which returned 16.2% over the past year.
Shareholder returns
| AAP | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 1.4% | 2.6% |
| 30 Day | 9.2% | 9.0% | 6.1% |
| 90 Day | 26.8% | 18.8% | 16.6% |
| 1 Year | 5.9%5.3% | 7.3%6.1% | 17.8%15.4% |
| 3 Year | 40.2%39.0% | 50.3%43.8% | 43.9%34.7% |
| 5 Year | -10.7%-11.8% | 34.1%23.8% | 76.2%57.3% |
Price Volatility Vs. Market
How volatile is Advance Auto Parts's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
When Should You Buy Advance Auto Parts, Inc. (NYSE:AAP)?3 months ago | Simply Wall St
How Does Advance Auto Parts's (NYSE:AAP) P/E Compare To Its Industry, After Its Big Share Price Gain?3 months ago | Simply Wall St
Do Its Financials Have Any Role To Play In Driving Advance Auto Parts, Inc.'s (NYSE:AAP) Stock Up Recently?Valuation
Is Advance Auto Parts undervalued compared to its fair value and its price relative to the market?
16.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAP ($151.72) is trading below our estimate of fair value ($181.3)
Significantly Below Fair Value: AAP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AAP is poor value based on its PE Ratio (27.5x) compared to the US Specialty Retail industry average (19.8x).
PE vs Market: AAP is poor value based on its PE Ratio (27.5x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: AAP is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: AAP is overvalued based on its PB Ratio (3x) compared to the US Specialty Retail industry average (1.3x).
Next Steps
Future Growth
How is Advance Auto Parts forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
18.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAP's forecast earnings growth (18.3% per year) is above the savings rate (2.2%).
Earnings vs Market: AAP's earnings (18.3% per year) are forecast to grow slower than the US market (22.6% per year).
High Growth Earnings: AAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAP's revenue (3.3% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: AAP's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AAP's Return on Equity is forecast to be high in 3 years time (21.3%)
Next Steps
Past Performance
How has Advance Auto Parts performed over the past 5 years?
-1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAP has high quality earnings.
Growing Profit Margin: AAP's current net profit margins (4.1%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: AAP's earnings have declined by 1.7% per year over the past 5 years.
Accelerating Growth: AAP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AAP had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-16.1%).
Return on Equity
High ROE: AAP's Return on Equity (11%) is considered low.
Next Steps
Financial Health
How is Advance Auto Parts's financial position?
Financial Position Analysis
Short Term Liabilities: AAP's short term assets ($6.6B) exceed its short term liabilities ($4.8B).
Long Term Liabilities: AAP's short term assets ($6.6B) exceed its long term liabilities ($3.7B).
Debt to Equity History and Analysis
Debt Level: AAP's debt to equity ratio (49.2%) is considered high.
Reducing Debt: AAP's debt to equity ratio has reduced from 75.3% to 49.2% over the past 5 years.
Debt Coverage: AAP's debt is well covered by operating cash flow (38.7%).
Interest Coverage: AAP's interest payments on its debt are well covered by EBIT (17x coverage).
Balance Sheet
Next Steps
Dividend
What is Advance Auto Parts's current dividend yield, its reliability and sustainability?
0.66%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAP's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: AAP's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.48%).
Stability and Growth of Payments
Stable Dividend: AAP is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AAP is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AAP is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AAP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Tom Greco (62 yo)
4.33yrs
Tenure
US$7,691,513
Compensation
Mr. Thomas R. Greco, also known as Tom, has been the Chief Executive Officer of Advance Auto Parts, Inc. since April 11, 2016 and has been its President since August 14, 2016. Mr. Greco served as the Chief ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD7.69M) is below average for companies of similar size in the US market ($USD11.29M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.33yrs | US$7.69m | 0.16% $ 16.8m | |
| Executive VP & CFO | 2.33yrs | US$1.77m | 0.0085% $ 896.7k | |
| Executive Vice President of Professional | 4yrs | US$1.96m | 0.015% $ 1.5m | |
| Executive Vice President of Supply Chain | 1.83yrs | US$1.86m | 0.0031% $ 325.5k | |
| Executive VP of Merchandising & Store Operations Support | 3.17yrs | US$1.65m | 0.0032% $ 332.9k | |
| Co-Founder and Chief Executive Officer of Regis HR | no data | no data | no data | |
| Senior VP | 1.25yrs | no data | 0.00087% $ 91.4k | |
| Executive VP & CTO | 2.33yrs | no data | no data | |
| Senior Vice President of Communications & Investor Relations | 0.83yr | no data | no data | |
| Executive VP | 5.58yrs | US$1.02m | 0.015% $ 1.6m | |
| Executive VP & Chief Marketing Officer | 1.08yrs | no data | no data | |
| Executive VP & Chief Human Resources Officer | 4.25yrs | US$1.09m | 0.0044% $ 467.3k |
2.3yrs
Average Tenure
52yo
Average Age
Experienced Management: AAP's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.33yrs | US$7.69m | 0.16% $ 16.8m | |
| Independent Director | 2yrs | US$240.00k | 0.0018% $ 191.1k | |
| Independent Director | 2.25yrs | US$240.00k | 0.0017% $ 182.7k | |
| Independent Chairman | 0.25yr | US$240.00k | 0.0043% $ 449.4k | |
| Independent Director | 1.5yrs | US$218.75k | 0.0032% $ 340.2k | |
| Independent Director | 12.25yrs | US$255.00k | 0.0075% $ 787.5k | |
| Independent Director | 4.42yrs | US$260.00k | 0.0017% $ 182.7k | |
| Independent Director | 5.5yrs | US$250.00k | 0.00043% $ 45.2k | |
| Independent Director | 1.5yrs | no data | no data |
2.3yrs
Average Tenure
62yo
Average Age
Experienced Board: AAP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AAP insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Advance Auto Parts, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Advance Auto Parts, Inc.
- Ticker: AAP
- Exchange: NYSE
- Founded: 1929
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: US$10.500b
- Shares outstanding: 68.83m
- Website: https://www.advanceautoparts.com
Number of Employees
Location
- Advance Auto Parts, Inc.
- 2635 East Millbrook Road
- Raleigh
- North Carolina
- 27604
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AAP | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Nov 2001 |
| AWN | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 2001 |
| 0H9G | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Nov 2001 |
| AAP * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Nov 2001 |
| A1AP34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/05 23:35 |
| End of Day Share Price | 2020/08/05 00:00 |
| Earnings | 2020/04/18 |
| Annual Earnings | 2019/12/28 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.