AAP

Advance Auto PartsNYSE:AAP Stock Report

Market Cap

US$13.2b

7D

2.4%

1Y

44.2%

Updated

22 Sep, 2021

Data

Company Financials +
AAP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends5/6

AAP Overview

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.

Advance Auto Parts Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Advance Auto Parts
Historical stock prices
Current Share PriceUS$211.21
52 Week HighUS$142.46
52 Week LowUS$217.69
Beta1.36
1 Month Change1.66%
3 Month Change5.10%
1 Year Change44.22%
3 Year Change24.73%
5 Year Change41.75%
Change since IPO1,419.50%

Recent News & Updates

Shareholder Returns

AAPUS Specialty RetailUS Market
7D2.4%1.0%-1.7%
1Y44.2%52.7%36.2%

Return vs Industry: AAP underperformed the US Specialty Retail industry which returned 47.2% over the past year.

Return vs Market: AAP exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is AAP's price volatile compared to industry and market?
AAP volatility
AAP Beta1.36
Industry Beta1.56
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
192954,000Tom Grecohttps://www.advanceautoparts.com

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.

Advance Auto Parts Fundamentals Summary

How do Advance Auto Parts's earnings and revenue compare to its market cap?
AAP fundamental statistics
Market CapUS$13.19b
Earnings (TTM)US$624.10m
Revenue (TTM)US$10.89b

21.1x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAP income statement (TTM)
RevenueUS$10.89b
Cost of RevenueUS$6.00b
Gross ProfitUS$4.89b
ExpensesUS$4.27b
EarningsUS$624.10m

Last Reported Earnings

Jul 17, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.34
Gross Margin44.92%
Net Profit Margin5.73%
Debt/Equity Ratio31.3%

How did AAP perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

19%

Payout Ratio

Valuation

Is Advance Auto Parts undervalued compared to its fair value and its price relative to the market?

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAP ($211.21) is trading below our estimate of fair value ($211.68)

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 (21.1x) compared to the US Specialty Retail industry average (10.4x).

PE vs Market: AAP is poor value based on its PE Ratio (21.1x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: AAP is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AAP is overvalued based on its PB Ratio (4x) compared to the US Specialty Retail industry average (2.9x).


Future Growth

How is Advance Auto Parts forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAP's forecast earnings growth (9.1% per year) is above the savings rate (2%).

Earnings vs Market: AAP's earnings (9.1% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: AAP's earnings are forecast to grow, but not significantly.

Revenue vs Market: AAP's revenue (2.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: AAP's revenue (2.8% 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 (29.6%)


Past Performance

How has Advance Auto Parts performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAP has high quality earnings.

Growing Profit Margin: AAP's current net profit margins (5.7%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: AAP's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: AAP's earnings growth over the past year (37.2%) exceeds its 5-year average (4.7% per year).

Earnings vs Industry: AAP earnings growth over the past year (37.2%) underperformed the Specialty Retail industry 158.2%.


Return on Equity

High ROE: AAP's Return on Equity (18.9%) is considered low.


Financial Health

How is Advance Auto Parts's financial position?


Financial Position Analysis

Short Term Liabilities: AAP's short term assets ($6.2B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: AAP's short term assets ($6.2B) exceed its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: AAP's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: AAP's debt to equity ratio has reduced from 42.4% to 31.3% over the past 5 years.

Debt Coverage: AAP's debt is well covered by operating cash flow (125.5%).

Interest Coverage: AAP's interest payments on its debt are well covered by EBIT (23.9x coverage).


Balance Sheet


Dividend

What is Advance Auto Parts's current dividend yield, its reliability and sustainability?

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAP's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: AAP's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 (18.7%), AAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAP's dividends in 3 years are forecast to be well covered by earnings (32.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Tom Greco (63 yo)

5.42yrs

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 ($USD8.06M) is about average for companies of similar size in the US market ($USD11.42M).

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 (4.3 years average tenure).


Board Members

Experienced Board: AAP's board of directors are not considered experienced ( 2.8 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 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$13.192b
  • Shares outstanding: 62.46m
  • Website: https://www.advanceautoparts.com

Number of Employees


Location

  • Advance Auto Parts, Inc.
  • 2635 East Millbrook Road
  • Raleigh
  • North Carolina
  • 27604
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:30
End of Day Share Price2021/09/22 00:00
Earnings2021/07/17
Annual Earnings2021/01/02


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.