ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis

NYSE:AAP • US00751Y1064

58.85 USD
+0.63 (+1.08%)
At close: Feb 13, 2026
58.6 USD
-0.25 (-0.42%)
After Hours: 2/13/2026, 8:04:00 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 120 industry peers in the Specialty Retail industry. Both the profitability and financial health of AAP have multiple concerns. AAP is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

2

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.
  • Of the past 5 years AAP 4 years were profitable.
  • 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

  • With a Return On Assets value of -3.12%, AAP is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
  • AAP has a Return On Equity (-17.17%) which is comparable to the rest of the 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

  • AAP's Gross Margin of 37.67% is in line compared to the rest of the industry. AAP outperforms 55.00% of its industry peers.
  • 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

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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.
  • Compared to 1 year ago, AAP has more shares outstanding
  • 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

  • Based on the Altman-Z score of 1.62, we must say that AAP is in the distress zone and has some risk of bankruptcy.
  • AAP has a Altman-Z score of 1.62. This is in the lower half of the industry: AAP underperforms 61.67% of its industry peers.
  • 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 64.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Altman-Z 1.62
ROIC/WACCN/A
WACC8.92%
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

  • 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 has a better Current ratio (1.73) than 73.33% of its industry peers.
  • A Quick Ratio of 0.88 indicates that AAP may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.88, AAP is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
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

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

3

3. Growth

3.1 Past

  • The earnings per share for AAP have decreased strongly by -73.42% in the last year.
  • AAP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -52.42% yearly.
  • 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

  • AAP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 92.43% yearly.
  • AAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.72% yearly.
EPS Next Y810.4%
EPS Next 2Y267.14%
EPS Next 3Y173.23%
EPS Next 5Y92.43%
Revenue Next Year-5.46%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.7%
Revenue Next 5Y0.72%

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

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 280.24, the valuation of AAP can be described as expensive.
  • AAP's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.97, AAP is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 21.83, the valuation of AAP can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, AAP is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
  • AAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 280.24
Fwd PE 21.83
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 173.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y267.14%
EPS Next 3Y173.23%

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 1.89%, 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.
  • Compared to an average S&P500 Dividend Yield of 1.79, AAP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.89%

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 2Y267.14%
EPS Next 3Y173.23%
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 (2/13/2026, 8:04:00 PM)

After market: 58.6 -0.25 (-0.42%)

58.85

+0.63 (+1.08%)

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-0.3%
Ins Owners0.84%
Ins Owner Change-1.52%
Market Cap3.53B
Revenue(TTM)8.63B
Net Income(TTM)-376.78M
Analysts56.11
Price Target52.59 (-10.64%)
Short Float %22.08%
Short Ratio7.19
Dividend
Industry RankSector Rank
Dividend Yield 1.89%
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)-3.87%
PT rev (3m)-4.31%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 280.24
Fwd PE 21.83
P/S 0.41
P/FCF N/A
P/OCF N/A
P/B 1.61
P/tB 2.96
EV/EBITDA N/A
EPS(TTM)0.21
EY0.36%
EPS(NY)2.7
Fwd EY4.58%
FCF(TTM)-6.69
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS143.7
BVpS36.57
TBVpS19.91
PEG (NY)0.35
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 1.62
F-Score3
WACC8.92%
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 2Y267.14%
EPS Next 3Y173.23%
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-5.46%
Revenue Next 2Y-2.3%
Revenue Next 3Y-0.7%
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 280.24 and the Price/Book (PB) ratio is 1.61.


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.