ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis

NYSE:AAP • US00751Y1064

55.87 USD
-0.11 (-0.2%)
At close: Feb 20, 2026
55.87 USD
0 (0%)
After Hours: 2/20/2026, 8:15:32 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 123 industry peers in the Specialty Retail industry. AAP has a bad profitability rating. Also its financial health evaluation is rather negative. AAP has a decent growth rate and is not valued too expensively.


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

  • AAP has a Return On Assets of 0.37%. This is comparable to the rest of the industry: AAP outperforms 51.24% of its industry peers.
  • The Return On Equity of AAP (2.00%) is comparable to the rest of the industry.
  • AAP has a Return On Invested Capital (2.16%) which is in line with its industry peers.
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

  • With a Profit Margin value of 0.51%, AAP perfoms like the industry average, outperforming 51.24% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AAP has declined.
  • With a Operating Margin value of 2.43%, AAP perfoms like the industry average, outperforming 52.07% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AAP has declined.
  • Looking at the Gross Margin, with a value of 43.84%, AAP is in the better half of the industry, outperforming 66.12% of the companies in the same industry.
  • 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.
  • AAP has a Debt to Equity ratio of 1.55. This is in the lower half of the industry: AAP underperforms 64.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.26
WACC8.42%
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

  • AAP has a Current Ratio of 1.75. This is a normal value and indicates that AAP is financially healthy and should not expect problems in meeting its short term obligations.
  • AAP has a Current ratio of 1.75. This is in the better half of the industry: AAP outperforms 72.73% of its industry peers.
  • A Quick Ratio of 0.87 indicates that AAP may have some problems paying its short term obligations.
  • The Quick ratio of AAP (0.87) is better than 69.42% of its industry peers.
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.
  • AAP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.36% yearly.
  • The Revenue for AAP has decreased by -31.19% in the past year. This is quite bad
  • AAP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.17% yearly.
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

  • Based on estimates for the next years, AAP will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.25% on average per year.
  • The Revenue is expected to grow by 2.38% on average over the next years.
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

  • 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.
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

  • Based on the Price/Earnings ratio of 24.83, the valuation of AAP can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of AAP indicates a somewhat cheap valuation: AAP is cheaper than 68.59% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.99. AAP is around the same levels.
  • The Price/Forward Earnings ratio is 20.72, which indicates a rather expensive current valuation of AAP.
  • 63.64% of the companies in the same industry are more expensive than AAP, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, AAP is valued a bit cheaper.
Industry RankSector Rank
PE 24.83
Fwd PE 20.72
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

  • Based on the Enterprise Value to EBITDA ratio, AAP is valued a bit cheaper than 71.07% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.59
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)1.25
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 1.79%, AAP has a reasonable but not impressive dividend return.
  • AAP's Dividend Yield is a higher than the industry average which is at 2.21.
  • AAP's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.79%

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

  • AAP pays out 136.36% of its income as dividend. This is not a sustainable payout ratio.
  • AAP's earnings are growing slower than its dividend. 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

Find the best dividend stocksShow peers with best dividend

ADVANCE AUTO PARTS INC

NYSE:AAP (2/20/2026, 8:15:32 PM)

After market: 55.87 0 (0%)

55.87

-0.11 (-0.2%)

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 Cap3.35B
Revenue(TTM)8.60B
Net Income(TTM)44.00M
Analysts57.22
Price Target52.59 (-5.87%)
Short Float %19.42%
Short Ratio5.66
Dividend
Industry RankSector Rank
Dividend Yield 1.79%
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 24.83
Fwd PE 20.72
P/S 0.39
P/FCF N/A
P/OCF N/A
P/B 1.53
P/tB 2.8
EV/EBITDA 7.59
EPS(TTM)2.25
EY4.03%
EPS(NY)2.7
Fwd EY4.83%
FCF(TTM)-4.97
FCFYN/A
OCF(TTM)-0.77
OCFYN/A
SpS143.32
BVpS36.62
TBVpS19.96
PEG (NY)1.25
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
WACC8.42%
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 24.83 and the Price/Book (PB) ratio is 1.53.


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.