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.
Excellent balance sheet with limited growth.
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.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: AAP underperformed the US Specialty Retail industry which returned 14.2% over the past year.
Return vs Market: AAP underperformed the US Market which returned 16.4% over the past year.
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 StWhen Should You Buy Advance Auto Parts, Inc. (NYSE:AAP)?
3 months ago | Simply Wall StHow Does Advance Auto Parts's (NYSE:AAP) P/E Compare To Its Industry, After Its Big Share Price Gain?
3 months ago | Simply Wall StDo Its Financials Have Any Role To Play In Driving Advance Auto Parts, Inc.'s (NYSE:AAP) Stock Up Recently?
Is Advance Auto Parts undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAP ($153.32) is trading below our estimate of fair value ($162.42)
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 (27.7x) compared to the US Specialty Retail industry average (19x).
PE vs Market: AAP is poor value based on its PE Ratio (27.7x) compared to the US market (18.9x).
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 (1.4x).
How is Advance Auto Parts forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAP's forecast earnings growth (18.5% per year) is above the savings rate (2.2%).
Earnings vs Market: AAP's earnings (18.5% per year) are forecast to grow slower than the US market (23.7% 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%)
How has Advance Auto Parts performed over the past 5 years?
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 (-23.3%).
Return on Equity
High ROE: AAP's Return on Equity (11%) is considered low.
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 ($3.7B).
Debt to Equity History and Analysis
Debt Level: AAP's debt to equity ratio (49.2%) is considered high.
Reducing Debt: AAP's debt to equity ratio has reduced from 75.3% to 49.2% over the past 5 years.
Debt Coverage: AAP's debt is well covered by operating cash flow (38.7%).
Interest Coverage: AAP's interest payments on its debt are well covered by EBIT (17x coverage).
What is Advance Auto Parts's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAP's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: AAP's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (4.35%).
Stability and Growth of Payments
Stable Dividend: AAP is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AAP is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AAP is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AAP's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Greco (62 yo)
Mr. Thomas R. Greco, also known as Tom, has been the Chief Executive Officer of Advance Auto Parts, Inc. since April 11, 2016 and has been its President since August 14, 2016. Mr. Greco served as the Chief ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD7.69M) is below average for companies of similar size in the US market ($USD11.30M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||2.33yrs||US$1.77m||0.0085% |
|Executive Vice President of Professional||4yrs||US$1.96m||0.015% |
|Executive Vice President of Supply Chain||1.83yrs||US$1.86m||0.0031% |
|Executive VP of Merchandising & Store Operations Support||3.17yrs||US$1.65m||0.0032% |
|Co-Founder and Chief Executive Officer of Regis HR||no data||no data||no data|
|Senior VP||1.25yrs||no data||0.00087% |
|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% |
|Executive VP & Chief Marketing Officer||1.08yrs||no data||no data|
|Executive VP & Chief Human Resources Officer||4.25yrs||US$1.09m||0.0044% |
Experienced Management: AAP's management team is considered experienced (2.3 years average tenure).
|Independent Director||2yrs||US$240.00k||0.0018% |
|Independent Director||2.25yrs||US$240.00k||0.0017% |
|Independent Chairman||0.25yr||US$240.00k||0.0043% |
|Independent Director||1.5yrs||US$218.75k||0.0032% |
|Independent Director||12.25yrs||US$255.00k||0.0075% |
|Independent Director||4.42yrs||US$260.00k||0.0017% |
|Independent Director||5.5yrs||US$250.00k||0.00043% |
|Independent Director||1.5yrs||no data||no data|
Experienced Board: AAP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Advance Auto Parts, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Advance Auto Parts, Inc.
- Ticker: AAP
- Exchange: NYSE
- Founded: 1929
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: US$10.553b
- Shares outstanding: 68.83m
- Website: https://www.advanceautoparts.com
Number of Employees
- Advance Auto Parts, Inc.
- 2635 East Millbrook Road
- North Carolina
- United States
|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|
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||2020/08/10 23:45|
|End of Day Share Price||2020/08/10 00:00|
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.