ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis

NYSE:AAP • US00751Y1064

56.74 USD
-2.11 (-3.59%)
At close: Feb 17, 2026
56.0936 USD
-0.65 (-1.14%)
After Hours: 2/17/2026, 6:30:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

AAP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. Both the profitability and financial health of AAP have multiple concerns. AAP has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

3

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.
  • Of the past 5 years AAP 4 years had a positive operating cash flow.
AAP Yearly Net Income VS EBIT VS OCF VS FCFAAP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • With a Return On Assets value of 0.37%, AAP perfoms like the industry average, outperforming 51.24% of the companies in the same industry.
  • AAP has a Return On Equity (2.00%) which is in line with its industry peers.
  • AAP has a Return On Invested Capital (2.16%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA 0.37%
ROE 2%
ROIC 2.16%
ROA(3y)-0.83%
ROA(5y)1.35%
ROE(3y)-4.1%
ROE(5y)5.26%
ROIC(3y)N/A
ROIC(5y)N/A
AAP Yearly ROA, ROE, ROICAAP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

  • AAP has a Profit Margin (0.51%) which is in line with its industry peers.
  • AAP's Profit Margin has declined in the last couple of years.
  • AAP has a Operating Margin (2.43%) which is in line with its industry peers.
  • AAP's Operating Margin has declined in the last couple of years.
  • AAP's Gross Margin of 43.84% is fine compared to the rest of the industry. AAP outperforms 66.12% of its industry peers.
  • In the last couple of years the Gross Margin of AAP has remained more or less at the same level.
Industry RankSector Rank
OM 2.43%
PM (TTM) 0.51%
GM 43.84%
OM growth 3Y-34.82%
OM growth 5Y-25.05%
PM growth 3Y-51.56%
PM growth 5Y-36.3%
GM growth 3Y-0.84%
GM growth 5Y-0.44%
AAP Yearly Profit, Operating, Gross MarginsAAP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAP is destroying value.
  • Compared to 1 year ago, AAP has more shares outstanding
  • Compared to 5 years ago, AAP has less shares outstanding
  • AAP has a worse debt/assets ratio than last year.
AAP Yearly Shares OutstandingAAP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
AAP Yearly Total Debt VS Total AssetsAAP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • A Debt/Equity ratio of 1.55 is on the high side and indicates that AAP has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.55, AAP is doing worse than 64.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.26
WACC8.39%
AAP Yearly LT Debt VS Equity VS FCFAAP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.75 indicates that AAP should not have too much problems paying its short term obligations.
  • The Current ratio of AAP (1.75) is better than 72.73% of its industry peers.
  • A Quick Ratio of 0.87 indicates that AAP may have some problems paying its short term obligations.
  • With a decent Quick ratio value of 0.87, AAP is doing good in the industry, outperforming 69.42% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 0.87
AAP Yearly Current Assets VS Current LiabilitesAAP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • AAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1025.00%, which is quite impressive.
  • Measured over the past years, AAP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.36% on average per year.
  • Looking at the last year, AAP shows a very negative growth in Revenue. The Revenue has decreased by -31.19% in the last year.
  • Measured over the past years, AAP shows a decrease in Revenue. The Revenue has been decreasing by -3.17% on average per year.
EPS 1Y (TTM)1025%
EPS 3Y-44.31%
EPS 5Y-23.36%
EPS Q2Q%172.88%
Revenue 1Y (TTM)-31.19%
Revenue growth 3Y-8.3%
Revenue growth 5Y-3.17%
Sales Q2Q%-1.15%

3.2 Future

  • AAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.25% yearly.
  • AAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.38% yearly.
EPS Next Y19.82%
EPS Next 2Y34.65%
EPS Next 3Y30.75%
EPS Next 5Y18.25%
Revenue Next Year0.29%
Revenue Next 2Y1.51%
Revenue Next 3Y1.96%
Revenue Next 5Y2.38%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AAP Yearly Revenue VS EstimatesAAP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
AAP Yearly EPS VS EstimatesAAP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 2 4 6 8 10

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • AAP is valuated quite expensively with a Price/Earnings ratio of 25.22.
  • Based on the Price/Earnings ratio, AAP is valued a bit cheaper than 66.94% of the companies in the same industry.
  • AAP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.16.
  • With a Price/Forward Earnings ratio of 21.05, AAP is valued on the expensive side.
  • AAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAP is cheaper than 61.98% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, AAP is valued a bit cheaper.
Industry RankSector Rank
PE 25.22
Fwd PE 21.05
AAP Price Earnings VS Forward Price EarningsAAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAP indicates a somewhat cheap valuation: AAP is cheaper than 70.25% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.94
AAP Per share dataAAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • AAP's earnings are expected to grow with 30.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y34.65%
EPS Next 3Y30.75%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.70%, AAP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.26, AAP pays a bit more dividend than its industry peers.
  • AAP's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.7%

5.2 History

  • On average, the dividend of AAP grows each year by 32.92%, which is quite nice.
  • AAP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)32.92%
Div Incr Years0
Div Non Decr Years0
AAP Yearly Dividends per shareAAP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 136.36% of the earnings are spent on dividend by AAP. This is not a sustainable payout ratio.
  • The dividend of AAP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP136.36%
EPS Next 2Y34.65%
EPS Next 3Y30.75%
AAP Yearly Income VS Free CF VS DividendAAP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M
AAP Dividend Payout.AAP Dividend Payout, showing the Payout Ratio.AAP Dividend Payout.PayoutRetained Earnings

More info and screens

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ADVANCE AUTO PARTS INC

NYSE:AAP (2/17/2026, 6:30:00 PM)

After market: 56.0936 -0.65 (-1.14%)

56.74

-2.11 (-3.59%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-13
Earnings (Next)05-20
Inst Owners121.83%
Inst Owner Change1.49%
Ins Owners0.84%
Ins Owner Change-1.52%
Market Cap3.41B
Revenue(TTM)8.60B
Net Income(TTM)44.00M
Analysts57.22
Price Target52.59 (-7.31%)
Short Float %19.42%
Short Ratio5.66
Dividend
Industry RankSector Rank
Dividend Yield 1.7%
Yearly Dividend1
Dividend Growth(5Y)32.92%
DP136.36%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)62.43%
Min EPS beat(2)21.16%
Max EPS beat(2)103.71%
EPS beat(4)4
Avg EPS beat(4)54.25%
Min EPS beat(4)18.85%
Max EPS beat(4)103.71%
EPS beat(8)5
Avg EPS beat(8)10.85%
EPS beat(12)5
Avg EPS beat(12)-42.94%
EPS beat(16)6
Avg EPS beat(16)-32.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-0.44%
Max Revenue beat(4)2.34%
Revenue beat(8)4
Avg Revenue beat(8)-2.11%
Revenue beat(12)5
Avg Revenue beat(12)-1.57%
Revenue beat(16)6
Avg Revenue beat(16)-1.5%
PT rev (1m)-3.87%
PT rev (3m)-4.31%
EPS NQ rev (1m)-2.92%
EPS NQ rev (3m)-2.49%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 25.22
Fwd PE 21.05
P/S 0.4
P/FCF N/A
P/OCF N/A
P/B 1.55
P/tB 2.84
EV/EBITDA 7.94
EPS(TTM)2.25
EY3.97%
EPS(NY)2.7
Fwd EY4.75%
FCF(TTM)-4.97
FCFYN/A
OCF(TTM)-0.77
OCFYN/A
SpS143.32
BVpS36.62
TBVpS19.96
PEG (NY)1.27
PEG (5Y)N/A
Graham Number43.06
Profitability
Industry RankSector Rank
ROA 0.37%
ROE 2%
ROCE 2.73%
ROIC 2.16%
ROICexc 3.65%
ROICexgc 4.68%
OM 2.43%
PM (TTM) 0.51%
GM 43.84%
FCFM N/A
ROA(3y)-0.83%
ROA(5y)1.35%
ROE(3y)-4.1%
ROE(5y)5.26%
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 3Y-34.02%
ROICexgc growth 5Y-23.52%
ROICexc growth 3Y-33.08%
ROICexc growth 5Y-22.57%
OM growth 3Y-34.82%
OM growth 5Y-25.05%
PM growth 3Y-51.56%
PM growth 5Y-36.3%
GM growth 3Y-0.84%
GM growth 5Y-0.44%
F-Score4
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Debt/EBITDA 7.09
Cap/Depr 92.65%
Cap/Sales 2.93%
Interest Coverage 2.75
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.75
Quick Ratio 0.87
Altman-Z N/A
F-Score4
WACC8.39%
ROIC/WACC0.26
Cap/Depr(3y)77.89%
Cap/Depr(5y)99.04%
Cap/Sales(3y)2.52%
Cap/Sales(5y)2.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1025%
EPS 3Y-44.31%
EPS 5Y-23.36%
EPS Q2Q%172.88%
EPS Next Y19.82%
EPS Next 2Y34.65%
EPS Next 3Y30.75%
EPS Next 5Y18.25%
Revenue 1Y (TTM)-31.19%
Revenue growth 3Y-8.3%
Revenue growth 5Y-3.17%
Sales Q2Q%-1.15%
Revenue Next Year0.29%
Revenue Next 2Y1.51%
Revenue Next 3Y1.96%
Revenue Next 5Y2.38%
EBIT growth 1Y165.64%
EBIT growth 3Y-40.23%
EBIT growth 5Y-27.43%
EBIT Next Year182.67%
EBIT Next 3Y48.11%
EBIT Next 5Y24.65%
FCF growth 1Y-209.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-154.35%
OCF growth 3YN/A
OCF growth 5YN/A

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 3 / 10.


Can you provide the PE and PB ratios for AAP stock?

The Price/Earnings (PE) ratio for ADVANCE AUTO PARTS INC (AAP) is 25.22 and the Price/Book (PB) ratio is 1.55.


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 19.82% in the next year.