ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AAP • US00751Y1064

52.69 USD
-1.83 (-3.36%)
Last: Feb 5, 2026, 01:10 PM
Fundamental Rating

3

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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

2

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.
  • AAP had a positive operating cash flow in each of the past 5 years.
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 0 500M 1B

1.2 Ratios

  • The Return On Assets of AAP (-3.12%) is worse than 63.64% of its industry peers.
  • Looking at the Return On Equity, with a value of -17.17%, AAP is in line with its industry, outperforming 41.32% of the companies in the same industry.
Industry RankSector 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
AAP Yearly ROA, ROE, ROICAAP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

  • With a Gross Margin value of 37.67%, AAP perfoms like the industry average, outperforming 54.55% of the companies in the same 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 RankSector 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%
AAP Yearly Profit, Operating, Gross MarginsAAP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

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.
  • Compared to 5 years ago, AAP has less shares outstanding
  • The debt/assets ratio for AAP is higher compared to a year ago.
AAP Yearly Shares OutstandingAAP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2B 4B 6B 8B 10B

2.2 Solvency

  • AAP has an Altman-Z score of 1.61. This is a bad value and indicates that AAP is not financially healthy and even has some risk of bankruptcy.
  • AAP has a worse Altman-Z score (1.61) than 61.98% of its industry peers.
  • AAP has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of AAP (1.55) is worse than 64.46% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Altman-Z 1.61
ROIC/WACCN/A
WACC9.06%
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 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.73 indicates that AAP should not have too much problems paying its short term obligations.
  • AAP has a Current ratio of 1.73. This is in the better half of the industry: AAP outperforms 72.73% 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 has a better Quick ratio (0.88) than 67.77% of its industry peers.
Industry RankSector Rank
Current Ratio 1.73
Quick Ratio 0.88
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 2B 4B 6B

More info and screens

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

3

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%.
  • Measured over the past years, AAP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -52.42% on average per year.
  • Looking at the last year, AAP shows a very negative growth in Revenue. The Revenue has decreased by -33.50% in the last year.
  • 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

  • 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 Y810.4%
EPS Next 2Y266.36%
EPS Next 3Y172.1%
EPS Next 5Y92.43%
Revenue Next Year-5.47%
Revenue Next 2Y-2.28%
Revenue Next 3Y-0.69%
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.
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 250.90, which means the current valuation is very expensive for AAP.
  • AAP's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of AAP to the average of the S&P500 Index (28.25), we can say AAP is valued expensively.
  • A Price/Forward Earnings ratio of 19.63 indicates a rather expensive valuation of AAP.
  • AAP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAP is cheaper than 62.81% of the companies in the same industry.
  • AAP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
Industry RankSector Rank
PE 250.9
Fwd PE 19.63
AAP Price Earnings VS Forward Price EarningsAAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
AAP Per share dataAAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

  • AAP's 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 172.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y266.36%
EPS Next 3Y172.1%

More info and screens

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.08%, AAP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.20, AAP pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, AAP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.08%

5.2 History

  • On average, the dividend of AAP grows each year by 32.92%, which is quite nice.
  • 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
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

  • The earnings of AAP are negative and hence is the payout ratio. AAP will probably not be able to sustain this dividend level.
  • The dividend of AAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-15.92%
EPS Next 2Y266.36%
EPS Next 3Y172.1%
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 0 200M -200M 400M 600M 800M

More info and screens

Find the best dividend stocksShow peers with best dividend

ADVANCE AUTO PARTS INC

NYSE:AAP (2/5/2026, 1:10:24 PM)

52.69

-1.83 (-3.36%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-30
Earnings (Next)02-13
Inst Owners121.83%
Inst Owner Change-0.43%
Ins Owners0.84%
Ins Owner Change-1.52%
Market Cap3.16B
Revenue(TTM)8.63B
Net Income(TTM)-376.78M
Analysts56.11
Price Target54.51 (3.45%)
Short Float %22.08%
Short Ratio7.19
Dividend
Industry RankSector Rank
Dividend Yield 2.08%
Yearly Dividend1
Dividend Growth(5Y)32.92%
DP-15.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-09
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)-0.37%
PT rev (3m)-0.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.01%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 250.9
Fwd PE 19.63
P/S 0.37
P/FCF N/A
P/OCF N/A
P/B 1.44
P/tB 2.65
EV/EBITDA N/A
EPS(TTM)0.21
EY0.4%
EPS(NY)2.68
Fwd EY5.09%
FCF(TTM)-6.69
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS143.7
BVpS36.57
TBVpS19.91
PEG (NY)0.31
PEG (5Y)N/A
Graham Number13.15
Profitability
Industry RankSector 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 RankSector 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 1.61
F-Score3
WACC9.06%
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 Y810.4%
EPS Next 2Y266.36%
EPS Next 3Y172.1%
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-0.69%
Revenue Next 5Y0.72%
EBIT growth 1Y-356.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year712.26%
EBIT Next 3Y128.79%
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 3 / 10 to ADVANCE AUTO PARTS INC (AAP). This can be considered as Overvalued.


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 250.9 and the Price/Book (PB) ratio is 1.44.


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 810.4% in the next year.