Advance Auto Parts
Market Cap
US$12.9b
Last Updated
2021/06/13 23:05 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet established dividend payer.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AAP's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
3.5%
AAP
1.1%
US Specialty Retail
0.8%
US Market
1 Year Return
46.9%
AAP
77.0%
US Specialty Retail
44.4%
US Market
Return vs Industry: AAP underperformed the US Specialty Retail industry which returned 77% over the past year.
Return vs Market: AAP exceeded the US Market which returned 44.3% over the past year.
Shareholder returns
| AAP | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.5% | 1.1% | 0.8% |
| 30 Day | -1.7% | -0.6% | 3.0% |
| 90 Day | 9.8% | 1.5% | 4.4% |
| 1 Year | 47.6%46.9% | 78.1%77.0% | 46.7%44.4% |
| 3 Year | 47.1%45.4% | 86.5%79.6% | 60.3%50.4% |
| 5 Year | 31.0%29.0% | 123.4%108.0% | 128.3%102.8% |
Long-Term 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 days ago | Simply Wall St
Natalie Schechtman Is The Executive VP & Chief Human Resources Officer of Advance Auto Parts, Inc. (NYSE:AAP) And They Just Sold 51% Of Their Shares1 week ago | Simply Wall St
Advance Auto Parts (NYSE:AAP) Will Pay A Larger Dividend Than Last Year At US$1.001 month ago | Simply Wall St
Advance Auto Parts, Inc.'s (NYSE:AAP) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?Valuation
Is Advance Auto Parts undervalued compared to its fair value and its price relative to the market?
1.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAP ($199.44) is trading below our estimate of fair value ($201.6)
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 (21.3x) compared to the US Specialty Retail industry average (15x).
PE vs Market: AAP is poor value based on its PE Ratio (21.3x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: AAP is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: AAP is overvalued based on its PB Ratio (3.7x) compared to the US Specialty Retail industry average (3.4x).
Future Growth
How is Advance Auto Parts forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
8.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAP's forecast earnings growth (8.7% per year) is above the savings rate (2%).
Earnings vs Market: AAP's earnings (8.7% per year) are forecast to grow slower than the US market (15.5% per year).
High Growth Earnings: AAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAP's revenue (2.7% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AAP's revenue (2.7% 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 (25.8%)
Past Performance
How has Advance Auto Parts performed over the past 5 years?
2.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAP has high quality earnings.
Growing Profit Margin: AAP's current net profit margins (5.9%) are higher than last year (4.1%).
Past Earnings Growth Analysis
Earnings Trend: AAP's earnings have grown by 2.8% per year over the past 5 years.
Accelerating Growth: AAP's earnings growth over the past year (61.8%) exceeds its 5-year average (2.8% per year).
Earnings vs Industry: AAP earnings growth over the past year (61.8%) underperformed the Specialty Retail industry 122.1%.
Return on Equity
High ROE: AAP's Return on Equity (18.1%) is considered low.
Financial Health
How is Advance Auto Parts's financial position?
Financial Position Analysis
Short Term Liabilities: AAP's short term assets ($6.3B) exceed its short term liabilities ($4.8B).
Long Term Liabilities: AAP's short term assets ($6.3B) exceed its long term liabilities ($3.6B).
Debt to Equity History and Analysis
Debt Level: AAP's debt to equity ratio (29.5%) is considered satisfactory.
Reducing Debt: AAP's debt to equity ratio has reduced from 46.7% to 29.5% over the past 5 years.
Debt Coverage: AAP's debt is well covered by operating cash flow (124.7%).
Interest Coverage: AAP's interest payments on its debt are well covered by EBIT (21.6x coverage).
Balance Sheet
Dividend
What is Advance Auto Parts's current dividend yield, its reliability and sustainability?
2.01%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AAP's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: AAP's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.35%).
Stability and Growth of Payments
Stable Dividend: AAP's dividends per share have been stable in the past 10 years.
Growing Dividend: AAP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (10.7%), AAP's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AAP's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Tom Greco (62 yo)
5.17yrs
Tenure
US$8,056,454
Compensation
Mr. Thomas R. Greco, also known as Tom, has been the Chief Executive Officer of Advance Auto Parts, Inc. since April 11, 2016 and has been its President since August 14, 2016. Mr. Greco serves as Independe...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD8.06M) is about average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AAP's management team is considered experienced (4 years average tenure).
Board Members
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 only sold shares 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$12.943b
- Shares outstanding: 64.90m
- Website: https://www.advanceautoparts.com
Number of Employees
Location
- Advance Auto Parts, Inc.
- 2635 East Millbrook Road
- Raleigh
- North Carolina
- 27604
- United States
Listings
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 | 2021/06/13 23:05 |
| End of Day Share Price | 2021/06/11 00:00 |
| Earnings | 2021/04/24 |
| Annual Earnings | 2021/01/02 |
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.