NYSE:AAP

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless 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


Market Performance


7 Day Return

6.7%

NYSE:AAP

1.4%

US Specialty Retail

1.2%

US Market


1 Year Return

-5.1%

NYSE:AAP

-3.7%

US Specialty Retail

1.7%

US Market

AAP underperformed the Specialty Retail industry which returned -3.7% over the past year.

AAP underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

AAPIndustryMarket
7 Day6.7%1.4%1.2%
30 Day14.2%10.4%4.9%
90 Day3.4%5.7%3.7%
1 Year-5.0%-5.1%-2.1%-3.7%3.9%1.7%
3 Year6.6%6.0%37.5%30.5%47.2%37.7%
5 Year20.1%19.2%54.1%40.3%60.0%42.4%

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

Valuation

Is Advance Auto Parts undervalued based on future cash flows and its price relative to the stock market?

12%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Advance Auto Parts's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Advance Auto Parts's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Advance Auto Parts is overvalued based on earnings compared to the US Specialty Retail industry average.

Advance Auto Parts is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Advance Auto Parts is poor value based on expected growth next year.


Price Based on Value of Assets

Advance Auto Parts is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

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

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Advance Auto Parts's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Advance Auto Parts's earnings are expected to grow by 19.8% yearly, however this is not considered high growth (20% yearly).

Advance Auto Parts's revenue growth is positive but not above the United States of America market average.

Advance Auto Parts's earnings growth is expected to exceed the United States of America market average.

Advance Auto Parts's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Advance Auto Parts is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-0.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Advance Auto Parts's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Advance Auto Parts's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Advance Auto Parts's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.


Return on Equity

Advance Auto Parts has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Advance Auto Parts used its assets less efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Advance Auto Parts's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Advance Auto Parts's financial position?


Financial Position Analysis

Advance Auto Parts is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Advance Auto Parts's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Advance Auto Parts's level of debt (20.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (102.7% vs 20.3% today).

Debt is well covered by operating cash flow (115%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 8x debt.


Next Steps

Dividend

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

0.15%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Advance Auto Parts before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Advance Auto Parts's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Advance Auto Parts's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Advance Auto Parts is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Advance Auto Parts is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Advance Auto Parts's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Advance Auto Parts's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Advance Auto Parts's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Tom Greco (61yo)

3.4yrs

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

Tom's remuneration is about average for companies of similar size in United States of America.

Tom's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

The tenure for the Advance Auto Parts management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

59yo

Average Age

The tenure for the Advance Auto Parts board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$186,06619 Nov 18
Fiona Dias
EntityIndividual
Shares1,048
Max PriceUS$177.54

Ownership Breakdown


Management Team

  • Reuben Slone (56yo)

    Executive Vice President of Supply Chain

    • Tenure: 0.9yrs
    • Compensation: US$2.19m
  • Carlos Saladrigas (70yo)

    Co-Founder and Chief Executive Officer of Regis HR

    • Tenure: 0yrs
  • Tom Greco (61yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$8.86m
  • Bob Cushing (65yo)

    Executive Vice President of Professional

    • Tenure: 3.1yrs
    • Compensation: US$1.89m
  • Tammy Finley (52yo)

    Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$1.02m
  • Mike Broderick (50yo)

    Executive VP of Merchandising & Store Operations Support

    • Tenure: 2.3yrs
    • Compensation: US$1.73m
  • Jeff Shepherd (46yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$1.97m
  • Prabhakar Vaidyanathan

    VP of Finance & Investor Relations and Corporate Treasurer

    • Tenure: 2.3yrs
  • - Donthi

    Executive VP & CTO

    • Tenure: 1.4yrs
  • Andrew Page (49yo)

    Senior VP

    • Tenure: 0.3yrs

Board Members

  • Nigel Travis (69yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$122.22k
  • Doug Pertz (65yo)

    • Tenure: 1.7yrs
    • Compensation: US$197.50k
  • Gene Lee (57yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$240.00k
  • John Bergstrom (73yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$255.00k
  • Brad Buss (55yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$260.00k
  • John Ferraro (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$250.00k
  • Jeff Smith (47yo)

    Independent Chairman

    • Tenure: 3.3yrs
    • Compensation: US$340.00k
  • Jeff Jones (51yo)

    Director

    • Tenure: 0.6yrs
  • Tom Greco (61yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$8.86m
  • Andi Karaboutis (56yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$240.00k

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$11.143b
  • Shares outstanding: 70.98m
  • Website: https://www.advanceautoparts.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAPNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 2001
AWNDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2001
0H9GLSE (London Stock Exchange)YesCommon SharesGBUSDNov 2001
AAP *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 2001

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 23:30
End of Day Share Price2019/09/13 00:00
Earnings2019/07/13
Annual Earnings2018/12/29


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.