ADVANCE AUTO PARTS INC (AAP) Stock Fundamental Analysis

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

55.3 USD
+2.37 (+4.48%)
At close: Feb 6, 2026
55.2 USD
-0.1 (-0.18%)
After Hours: 2/6/2026, 8:16:30 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 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.
  • AAP had a negative operating cash flow in the past year.
  • Of the past 5 years AAP 4 years were profitable.
  • Each year in the past 5 years AAP 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 0 500M 1B

1.2 Ratios

  • With a Return On Assets value of -3.12%, AAP is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
  • AAP's Return On Equity of -17.17% is in line compared to the rest of the industry. AAP outperforms 41.32% of its industry peers.
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.
  • The Profit Margin and Operating Margin are not available for AAP so they could not be analyzed.
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.
  • AAP has more shares outstanding than it did 1 year ago.
  • AAP has less shares outstanding than it did 5 years ago.
  • 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 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.
  • Looking at the Altman-Z score, with a value of 1.61, AAP is doing worse than 61.16% of the companies in the same industry.
  • AAP has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external 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 1.61
ROIC/WACCN/A
WACC8.99%
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's Current ratio of 1.73 is fine compared to the rest of the industry. AAP outperforms 72.73% 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 67.77% 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

  • The Earnings Per Share is expected to grow by 92.43% on average over the next years. This is a very strong growth
  • 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

  • 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

  • AAP is valuated quite expensively with a Price/Earnings ratio of 263.33.
  • Compared to the rest of the industry, the Price/Earnings ratio of AAP is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of AAP to the average of the S&P500 Index (27.92), we can say AAP is valued expensively.
  • The Price/Forward Earnings ratio is 20.60, which indicates a rather expensive current valuation of AAP.
  • 62.81% of the companies in the same industry are more expensive than AAP, based on the Price/Forward Earnings ratio.
  • AAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.78, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 263.33
Fwd PE 20.6
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as AAP's earnings are expected to grow with 172.10% in the coming years.
PEG (NY)0.32
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

  • AAP has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.19, AAP pays a bit more dividend than its industry peers.
  • AAP's Dividend Yield is comparable with the S&P500 average which is at 1.83.
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

  • 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 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 (2/6/2026, 8:16:30 PM)

After market: 55.2 -0.1 (-0.18%)

55.3

+2.37 (+4.48%)

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 Cap3.32B
Revenue(TTM)8.63B
Net Income(TTM)-376.78M
Analysts56.11
Price Target54.51 (-1.43%)
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 263.33
Fwd PE 20.6
P/S 0.38
P/FCF N/A
P/OCF N/A
P/B 1.51
P/tB 2.78
EV/EBITDA N/A
EPS(TTM)0.21
EY0.38%
EPS(NY)2.68
Fwd EY4.85%
FCF(TTM)-6.69
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS143.7
BVpS36.57
TBVpS19.91
PEG (NY)0.32
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
WACC8.99%
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 263.33 and the Price/Book (PB) ratio is 1.51.


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.