Advance Auto Parts
Market Cap
US$9.6b
Last Updated
2020/02/25 23:45 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
No risks detected for AAP from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven track record.
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
-3.0%
AAP
-1.5%
US Specialty Retail
-4.2%
US Market
1 Year Return
-15.5%
AAP
15.6%
US Specialty Retail
14.0%
US Market
Return vs Industry: AAP underperformed the US Specialty Retail industry which returned 15.6% over the past year.
Return vs Market: AAP underperformed the US Market which returned 14% over the past year.
Shareholder returns
| AAP | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | -1.5% | -4.2% |
| 30 Day | -2.9% | 0.3% | -1.8% |
| 90 Day | -13.3% | 0.2% | 2.6% |
| 1 Year | -15.4%-15.5% | 17.3%15.6% | 16.3%14.0% |
| 3 Year | -11.7%-12.1% | 42.6%35.8% | 43.2%34.0% |
| 5 Year | -10.2%-10.9% | 44.1%32.5% | 65.9%47.6% |
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
5 days ago | Simply Wall St
Here's What Analysts Are Forecasting For Advance Auto Parts, Inc. After Its Yearly Results2 weeks ago | Simply Wall St
What Is Advance Auto Parts, Inc.'s (NYSE:AAP) Share Price Doing?4 weeks ago | Simply Wall St
Imagine Owning Advance Auto Parts (NYSE:AAP) And Wondering If The 14% Share Price Slide Is JustifiedValuation
Is Advance Auto Parts undervalued compared to its fair value and its price relative to the market?
27.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAP ($139.91) is trading below our estimate of fair value ($190.29)
Significantly Below Fair Value: AAP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AAP is poor value based on its PE Ratio (20.4x) compared to the Specialty Retail industry average (16x).
PE vs Market: AAP is poor value based on its PE Ratio (20.4x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: AAP is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: AAP is overvalued based on its PB Ratio (2.7x) compared to the US Specialty Retail industry average (1.4x).
Next Steps
Future Growth
How is Advance Auto Parts forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
11.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAP's forecast earnings growth (11.8% per year) is above the savings rate (1.7%).
Earnings vs Market: AAP's earnings (11.8% per year) are forecast to grow slower than the US market (13.1% per year).
High Growth Earnings: AAP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAP's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AAP's revenue (1.7% 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 low in 3 years time (14.6%).
Next Steps
Past Performance
How has Advance Auto Parts performed over the past 5 years?
-1.1%
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%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: AAP's earnings have declined by -1.1% per year over the past 5 years.
Accelerating Growth: AAP's earnings growth over the past year (14.5%) exceeds its 5-year average (-1.1% per year).
Earnings vs Industry: AAP earnings growth over the past year (14.5%) exceeded the Specialty Retail industry 7.9%.
Return on Equity
High ROE: AAP's Return on Equity (13.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Advance Auto Parts's financial position?
Financial Position Analysis
Short Term Liabilities: AAP's short term assets ($5.7B) exceed its short term liabilities ($4.5B).
Long Term Liabilities: AAP's short term assets ($5.7B) exceed its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: AAP's debt to equity ratio (21.1%) is considered satisfactory.
Reducing Debt: AAP's debt to equity ratio has reduced from 83.2% to 21.1% over the past 5 years.
Debt Coverage: AAP's debt is well covered by operating cash flow (116%).
Interest Coverage: AAP's interest payments on its debt are well covered by EBIT (19x coverage).
Balance Sheet
Inventory Level: AAP has a high level of physical assets or inventory.
Debt Coverage by Assets: AAP's debt is covered by short term assets (assets are 7.6x debt).
Next Steps
Dividend
What is Advance Auto Parts's current dividend yield, its reliability and sustainability?
0.73%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Advance Auto Parts before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AAP's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).
High Dividend: AAP's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.77%).
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?
1.8yrs
Average management tenure
CEO
Tom Greco (61yo)
3.8yrs
Tenure
US$8,856,135
Compensation
Mr. Thomas R. Greco, also known as Tom, has been the Chief Executive Officer of Advance Auto Parts, Inc. since April 11, 2016 and has been its President since August 14, 2016. Mr. Greco served as the Chief ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD8.86M) is about average for companies of similar size in the US market ($USD10.82M).
Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.8yrs | US$8.86m | 0.097% $9.3m | |
| Executive VP & CFO | 1.8yrs | US$1.97m | 0.0038% $366.6k | |
| Executive Vice President of Supply Chain | 1.3yrs | US$2.19m | 0.0012% $117.4k | |
| Executive VP of Merchandising & Store Operations Support | 2.7yrs | US$1.73m | 0.0018% $173.2k | |
| Executive Vice President of Professional | 0yrs | US$1.89m | 0.013% $1.2m | |
| Co-Founder and Chief Executive Officer of Regis HR | 0yrs | no data | no data | |
| Senior VP | 0.8yrs | no data | no data | |
| Executive VP & CTO | 1.8yrs | no data | no data | |
| Senior Vice President of Communications & Investor Relations | 0.3yrs | no data | no data | |
| Executive VP | 5.1yrs | US$1.02m | 0.013% $1.3m |
1.8yrs
Average Tenure
54yo
Average Age
Experienced Management: AAP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.8yrs | US$8.86m | 0.097% $9.3m | |
| Director | 1.5yrs | US$122.22k | 0.0018% $175.1k | |
| Independent Director | 2.1yrs | US$197.50k | 0.0017% $167.4k | |
| Independent Director | 4.3yrs | US$240.00k | 0.0045% $436.9k | |
| Independent Director | 11.8yrs | US$255.00k | 0.0075% $722.7k | |
| Independent Director | 3.9yrs | US$260.00k | 0.0017% $167.4k | |
| Independent Director | 5yrs | US$250.00k | 0.00073% $70.2k | |
| Independent Chairman | 3.8yrs | US$340.00k | no data | |
| Independent Director | 1yrs | no data | 0.0014% $139.5k | |
| Independent Director | 5yrs | US$240.00k | 0.00053% $51.0k |
3.9yrs
Average Tenure
59yo
Average Age
Experienced Board: AAP's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
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$9.623b
- Shares outstanding: 68.78m
- 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. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also offers air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluids; electrical wires and fuses; electronics; floor mats, seat covers, and interior accessories; hand and specialty tools; lighting products; performance parts; sealants, adhesives and compounds; tire repair accessories; vent shades, mirrors and exterior accessories; washes, waxes and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oils; oil filters, part cleaners and treatments; and transmission fluids for engine maintenance. Further, it offers battery and wiper installation; engine light scanning checking; electrical system testing; video clinic; oil and battery recycling; and loaner tool program services. Additionally, the company sells its products through its Website. It serves professional installers and do-it-yourself customers. Advance Auto Parts, Inc. operates its stores under the Advance Auto Parts, Autopart International, Carquest, and Worldpac brand names. As of December 28, 2019, the company operated 4,877 stores and 160 branches in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada; and served 1,253 independently owned Carquest branded stores in Mexico, the Bahamas, Turks and Caicos, and the British Virgin Islands. Advance Auto Parts, Inc. was founded in 1929 and is based in Raleigh, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/25 23:45 |
| End of Day Share Price | 2020/02/25 00:00 |
| Earnings | 2019/12/28 |
| 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.