ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AAP - US00751Y1064 - Common Stock
41.31 USD
-1.89 (-4.37%)
41.29 USD
-0.02 (-0.05%)
Taking everything into account, AAP scores 3 out of 10 in our fundamental rating. AAP was compared to 121 industry peers in the Specialty Retail industry. AAP has a bad profitability rating. Also its financial health evaluation is rather negative. AAP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- AAP had positive earnings in the past year.
- In the past year AAP has reported a negative cash flow from operations.
- AAP had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years AAP had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -3.12%, AAP is not doing good in the industry: 62.81% of the companies in the same industry are doing better.
- AAP has a Return On Equity (-17.17%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -17.17% | ||
| ROIC | N/A |
ROA(3y)0.44%
ROA(5y)2.11%
ROE(3y)1.54%
ROE(5y)7.63%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Gross Margin of AAP (37.67%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of AAP has declined.
- AAP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.67% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.8%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
- AAP does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, AAP has more shares outstanding
- Compared to 5 years ago, AAP has less shares outstanding
- Compared to 1 year ago, AAP has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.56, we must say that AAP is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.56, AAP is doing worse than 63.64% of the companies in the same industry.
- AAP has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.55, AAP is not doing good in the industry: 64.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACCN/A
WACC8.89%
2.3 Liquidity
- A Current Ratio of 1.73 indicates that AAP should not have too much problems paying its short term obligations.
- AAP's Current ratio of 1.73 is fine compared to the rest of the industry. AAP outperforms 73.55% of its industry peers.
- AAP has a Quick Ratio of 1.73. This is a bad value and indicates that AAP is not financially healthy enough and could expect problems in meeting its short term obligations.
- AAP's Quick ratio of 0.88 is fine compared to the rest of the industry. AAP outperforms 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- AAP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.42%.
- The earnings per share for AAP have been decreasing by -52.42% on average. This is quite bad
- The Revenue for AAP has decreased by -33.50% in the past year. This is quite bad
- The Revenue has been decreasing by -1.30% on average over the past years.
EPS 1Y (TTM)-73.42%
EPS 3Y-74.47%
EPS 5Y-52.42%
EPS Q2Q%2400%
Revenue 1Y (TTM)-33.5%
Revenue growth 3Y-6.14%
Revenue growth 5Y-1.3%
Sales Q2Q%-5.21%
3.2 Future
- Based on estimates for the next years, AAP will show a very strong growth in Earnings Per Share. The EPS will grow by 92.43% on average per year.
- The Revenue is expected to grow by 0.72% on average over the next years.
EPS Next Y815.17%
EPS Next 2Y269.57%
EPS Next 3Y173.67%
EPS Next 5Y92.43%
Revenue Next Year-5.47%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.72%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 196.71 indicates a quite expensive valuation of AAP.
- The rest of the industry has a similar Price/Earnings ratio as AAP.
- AAP is valuated expensively when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.12 indicates a correct valuation of AAP.
- AAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAP is cheaper than 75.21% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AAP to the average of the S&P500 Index (23.94), we can say AAP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 196.71 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as AAP's earnings are expected to grow with 173.67% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y269.57%
EPS Next 3Y173.67%
5. Dividend
5.1 Amount
- AAP has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
- The stock price of AAP dropped by -24.29% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 2.08, AAP pays a better dividend. On top of this AAP pays more dividend than 80.17% of the companies listed in the same industry.
- AAP's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
- The dividend of AAP is nicely growing with an annual growth rate of 32.92%!
- AAP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)32.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AAP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of AAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-15.92%
EPS Next 2Y269.57%
EPS Next 3Y173.67%
41.31
-1.89 (-4.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners121.83%
Inst Owner Change0.06%
Ins Owners0.84%
Ins Owner Change-1.47%
Market Cap2.48B
Revenue(TTM)8.63B
Net Income(TTM)-376.78M
Analysts56.11
Price Target54.51 (31.95%)
Short Float %21.96%
Short Ratio7.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend1
Dividend Growth(5Y)32.92%
DP-15.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-09 2026-01-09 (0.25)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20%
Min EPS beat(2)18.85%
Max EPS beat(2)21.16%
EPS beat(4)4
Avg EPS beat(4)28.58%
Min EPS beat(4)1.01%
Max EPS beat(4)73.31%
EPS beat(8)4
Avg EPS beat(8)-47.07%
EPS beat(12)5
Avg EPS beat(12)-49.97%
EPS beat(16)6
Avg EPS beat(16)-38.4%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)0.6%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)2.36%
Revenue beat(8)3
Avg Revenue beat(8)-2.24%
Revenue beat(12)5
Avg Revenue beat(12)-1.47%
Revenue beat(16)6
Avg Revenue beat(16)-1.5%
PT rev (1m)-1.38%
PT rev (3m)-0.38%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-16.63%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 196.71 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.13 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.21
EY0.51%
EPS(NY)2.73
Fwd EY6.61%
FCF(TTM)-6.69
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS143.7
BVpS36.57
TBVpS19.91
PEG (NY)0.24
PEG (5Y)N/A
Graham Number13.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.12% | ||
| ROE | -17.17% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.67% | ||
| FCFM | N/A |
ROA(3y)0.44%
ROA(5y)2.11%
ROE(3y)1.54%
ROE(5y)7.63%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.8%
GM growth 5Y-3.09%
F-Score3
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 72.75% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.56 |
F-Score3
WACC8.89%
ROIC/WACCN/A
Cap/Depr(3y)97.04%
Cap/Depr(5y)101.93%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-73.42%
EPS 3Y-74.47%
EPS 5Y-52.42%
EPS Q2Q%2400%
EPS Next Y815.17%
EPS Next 2Y269.57%
EPS Next 3Y173.67%
EPS Next 5Y92.43%
Revenue 1Y (TTM)-33.5%
Revenue growth 3Y-6.14%
Revenue growth 5Y-1.3%
Sales Q2Q%-5.21%
Revenue Next Year-5.47%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.72%
EBIT growth 1Y-356.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year712.26%
EBIT Next 3Y130.47%
EBIT Next 5Y59.55%
FCF growth 1Y-3874.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-170.98%
OCF growth 3Y-57.63%
OCF growth 5Y-37.21%
ADVANCE AUTO PARTS INC / AAP FAQ
What is the fundamental rating for AAP stock?
ChartMill assigns a fundamental rating of 3 / 10 to AAP.
Can you provide the valuation status for ADVANCE AUTO PARTS INC?
ChartMill assigns a valuation rating of 4 / 10 to ADVANCE AUTO PARTS INC (AAP). This can be considered as Fairly Valued.
Can you provide the profitability details for ADVANCE AUTO PARTS INC?
ADVANCE AUTO PARTS INC (AAP) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for AAP stock?
The Price/Earnings (PE) ratio for ADVANCE AUTO PARTS INC (AAP) is 196.71 and the Price/Book (PB) ratio is 1.13.
Can you provide the expected EPS growth for AAP stock?
The Earnings per Share (EPS) of ADVANCE AUTO PARTS INC (AAP) is expected to grow by 815.17% in the next year.