ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AAP - US00751Y1064 - Common Stock
41.875 USD
-0.91 (-2.14%)
Taking everything into account, AAP scores 3 out of 10 in our fundamental rating. AAP was compared to 122 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AAP was profitable.
In the past year AAP has reported a negative cash flow from operations.
AAP had positive earnings in 4 of the past 5 years.
In the past 5 years AAP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.12%, AAP is doing worse than 64.75% of the companies in the same industry.
AAP has a Return On Equity of -17.17%. This is in the lower half of the industry: AAP underperforms 60.66% of 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
Looking at the Gross Margin, with a value of 37.67%, AAP is in line with its industry, outperforming 54.92% of the companies in the same industry.
AAP's Gross Margin has declined in the last couple of years.
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.
The number of shares outstanding for AAP has been increased compared to 1 year ago.
AAP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AAP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.57, 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 1.57, AAP is doing worse than 63.93% of the companies in the same industry.
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 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.57 |
ROIC/WACCN/A
WACC8.81%
2.3 Liquidity
AAP has a Current Ratio of 1.73. This is a normal value and indicates that AAP is financially healthy and should not expect problems in meeting its short term obligations.
AAP's Current ratio of 1.73 is fine compared to the rest of the industry. AAP outperforms 74.59% of its industry peers.
A Quick Ratio of 0.88 indicates that AAP may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.88, AAP is doing good in the industry, outperforming 69.67% of the companies in the same industry.
| 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
AAP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -33.50%.
Measured over the past years, AAP shows a decrease in Revenue. The Revenue has been decreasing by -1.30% on average per year.
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
The Earnings Per Share is expected to grow by 92.83% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.66% on average over the next years.
EPS Next Y816.64%
EPS Next 2Y269.64%
EPS Next 3Y173.82%
EPS Next 5Y92.83%
Revenue Next Year-5.47%
Revenue Next 2Y-2.25%
Revenue Next 3Y-0.74%
Revenue Next 5Y0.66%
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
AAP is valuated quite expensively with a Price/Earnings ratio of 199.40.
Compared to the rest of the industry, the Price/Earnings ratio of AAP is on the same level as its industry peers.
AAP is valuated expensively when we compare the Price/Earnings ratio to 26.22, which is the current average of the S&P500 Index.
AAP is valuated correctly with a Price/Forward Earnings ratio of 15.32.
AAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAP is cheaper than 68.85% of the companies in the same industry.
AAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 199.4 | ||
| Fwd PE | 15.32 |
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.
AAP's earnings are expected to grow with 173.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y269.64%
EPS Next 3Y173.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, AAP has a reasonable but not impressive dividend return.
In the last 3 months the price of AAP has falen by -27.10%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AAP's Dividend Yield is rather good when compared to the industry average which is at 1.84. AAP pays more dividend than 80.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, AAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
5.3 Sustainability
AAP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
AAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-15.92%
EPS Next 2Y269.64%
EPS Next 3Y173.82%
NYSE:AAP (12/18/2025, 11:39:07 AM)
41.875
-0.91 (-2.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners121.6%
Inst Owner Change4.06%
Ins Owners0.85%
Ins Owner Change-1.67%
Market Cap2.51B
Revenue(TTM)8.63B
Net Income(TTM)-376.78M
Analysts56.11
Price Target55.27 (31.99%)
Short Float %17.39%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1
Dividend Growth(5Y)32.92%
DP-15.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0.57%
PT rev (3m)1.02%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-21.89%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 199.4 | ||
| Fwd PE | 15.32 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.15 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.21
EY0.5%
EPS(NY)2.73
Fwd EY6.53%
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 | 1.57 |
F-Score3
WACC8.81%
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 Y816.64%
EPS Next 2Y269.64%
EPS Next 3Y173.82%
EPS Next 5Y92.83%
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-2.25%
Revenue Next 3Y-0.74%
Revenue Next 5Y0.66%
EBIT growth 1Y-356.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year621.34%
EBIT Next 3Y130.44%
EBIT Next 5Y59.34%
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.
What is the valuation status for AAP stock?
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.
What is the earnings growth outlook for ADVANCE AUTO PARTS INC?
The Earnings per Share (EPS) of ADVANCE AUTO PARTS INC (AAP) is expected to grow by 816.64% in the next year.
Is the dividend of ADVANCE AUTO PARTS INC sustainable?
The dividend rating of ADVANCE AUTO PARTS INC (AAP) is 5 / 10 and the dividend payout ratio is -15.92%.