ADVANCE AUTO PARTS INC (AAP) Fundamental Analysis & Valuation

NYSE:AAP • US00751Y1064

Current stock price

52.67 USD
-0.33 (-0.62%)
At close:
52.65 USD
-0.02 (-0.04%)
After Hours:

This AAP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. AAP Profitability Analysis

1.1 Basic Checks

  • In the past year AAP was profitable.
  • AAP had a negative operating cash flow in the past year.
  • AAP had positive earnings in 4 of the past 5 years.
  • AAP had a positive operating cash flow in 4 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 2025 0 500M 1B

1.2 Ratios

  • AAP has a Return On Assets (0.37%) which is in line with its industry peers.
  • AAP's Return On Equity of 2.00% is in line compared to the rest of the industry. AAP outperforms 56.45% of its industry peers.
  • AAP has a Return On Invested Capital of 2.22%. This is comparable to the rest of the industry: AAP outperforms 47.58% of its industry peers.
Industry RankSector Rank
ROA 0.37%
ROE 2%
ROIC 2.22%
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

  • AAP has a Profit Margin (0.51%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of AAP has declined.
  • AAP has a Operating Margin (2.50%) which is comparable to the rest of the industry.
  • AAP's Operating Margin has declined in the last couple of years.
  • AAP has a Gross Margin of 43.87%. This is in the better half of the industry: AAP outperforms 69.35% of its industry peers.
  • AAP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.5%
PM (TTM) 0.51%
GM 43.87%
OM growth 3Y-28.22%
OM growth 5Y-20.59%
PM growth 3Y-51.56%
PM growth 5Y-36.3%
GM growth 3Y-0.48%
GM growth 5Y-0.23%
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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2

2. AAP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAP is destroying value.
  • The number of shares outstanding for AAP has been increased compared to 1 year ago.
  • The number of shares outstanding for AAP has been reduced compared to 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 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

  • Based on the Altman-Z score of 1.79, we must say that AAP is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of AAP (1.79) is comparable to the rest of the 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 64.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Altman-Z 1.79
ROIC/WACC0.37
WACC5.97%
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

  • A Current Ratio of 1.75 indicates that AAP should not have too much problems paying its short term obligations.
  • AAP's Current ratio of 1.75 is fine compared to the rest of the industry. AAP outperforms 72.58% of its industry peers.
  • AAP has a Quick Ratio of 1.75. 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 (0.87) than 68.55% 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. AAP Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 1025.00% over the past year.
  • The earnings per share for AAP have been decreasing by -23.36% on average. This is quite bad
  • 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

  • AAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.23% yearly.
  • The Revenue is expected to grow by 1.79% on average over the next years.
EPS Next Y23.76%
EPS Next 2Y33.2%
EPS Next 3Y28.25%
EPS Next 5Y15.23%
Revenue Next Year-0.45%
Revenue Next 2Y1.02%
Revenue Next 3Y1.42%
Revenue Next 5Y1.79%

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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4

4. AAP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.41, AAP is valued on the expensive side.
  • Based on the Price/Earnings ratio, AAP is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, AAP is valued at the same level.
  • With a Price/Forward Earnings ratio of 18.92, AAP is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AAP indicates a somewhat cheap valuation: AAP is cheaper than 63.71% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, AAP is valued at the same level.
Industry RankSector Rank
PE 23.41
Fwd PE 18.92
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

  • AAP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AAP is cheaper than 70.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.13
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.
  • AAP's earnings are expected to grow with 28.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y33.2%
EPS Next 3Y28.25%

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

4

5. AAP Dividend Analysis

5.1 Amount

  • AAP has a Yearly Dividend Yield of 1.94%.
  • Compared to an average industry Dividend Yield of 3.06, AAP pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, AAP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.94%

5.2 History

  • The dividend of AAP is nicely growing with an annual growth rate of 32.92%!
  • AAP has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of AAP decreased recently.
Dividend Growth(5Y)32.92%
Div Incr Years0
Div Non Decr Years1
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.
  • The dividend of AAP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP136.36%
EPS Next 2Y33.2%
EPS Next 3Y28.25%
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

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AAP Fundamentals: All Metrics, Ratios and Statistics

ADVANCE AUTO PARTS INC

NYSE:AAP (4/7/2026, 5:05:00 PM)

After market: 52.65 -0.02 (-0.04%)

52.67

-0.33 (-0.62%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-13
Earnings (Next)05-20
Inst Owners127.14%
Inst Owner Change0%
Ins Owners1.03%
Ins Owner Change5%
Market Cap3.16B
Revenue(TTM)8.60B
Net Income(TTM)44.00M
Analysts57.14
Price Target57.41 (9%)
Short Float %19.24%
Short Ratio5.95
Dividend
Industry RankSector Rank
Dividend Yield 1.94%
Yearly Dividend1
Dividend Growth(5Y)32.92%
DP136.36%
Div Incr Years0
Div Non Decr Years1
Ex-Date04-10
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)0%
PT rev (3m)4.94%
EPS NQ rev (1m)4.83%
EPS NQ rev (3m)9.73%
EPS NY rev (1m)0%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.56%
Valuation
Industry RankSector Rank
PE 23.41
Fwd PE 18.92
P/S 0.37
P/FCF N/A
P/OCF N/A
P/B 1.44
P/tB 2.64
EV/EBITDA 7.13
EPS(TTM)2.25
EY4.27%
EPS(NY)2.78
Fwd EY5.29%
FCF(TTM)-4.97
FCFYN/A
OCF(TTM)-0.77
OCFYN/A
SpS143.32
BVpS36.62
TBVpS19.96
PEG (NY)0.99
PEG (5Y)N/A
Graham Number43.06
Profitability
Industry RankSector Rank
ROA 0.37%
ROE 2%
ROCE 2.81%
ROIC 2.22%
ROICexc 3.75%
ROICexgc 4.82%
OM 2.5%
PM (TTM) 0.51%
GM 43.87%
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-27.34%
ROICexgc growth 5Y-18.96%
ROICexc growth 3Y-26.3%
ROICexc growth 5Y-17.96%
OM growth 3Y-28.22%
OM growth 5Y-20.59%
PM growth 3Y-51.56%
PM growth 5Y-36.3%
GM growth 3Y-0.48%
GM growth 5Y-0.23%
F-Score4
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 1.55
Debt/FCF N/A
Debt/EBITDA 7.01
Cap/Depr 92.65%
Cap/Sales 2.93%
Interest Coverage 2.83
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.75
Quick Ratio 0.87
Altman-Z 1.79
F-Score4
WACC5.97%
ROIC/WACC0.37
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 Y23.76%
EPS Next 2Y33.2%
EPS Next 3Y28.25%
EPS Next 5Y15.23%
Revenue 1Y (TTM)-31.19%
Revenue growth 3Y-8.3%
Revenue growth 5Y-3.17%
Sales Q2Q%-1.15%
Revenue Next Year-0.45%
Revenue Next 2Y1.02%
Revenue Next 3Y1.42%
Revenue Next 5Y1.79%
EBIT growth 1Y167.53%
EBIT growth 3Y-34.18%
EBIT growth 5Y-23.11%
EBIT Next Year195%
EBIT Next 3Y48.35%
EBIT Next 5Y26.16%
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 Fundamental Analysis 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.


What is the profitability of AAP stock?

ADVANCE AUTO PARTS INC (AAP) has a profitability rating of 3 / 10.


What is the valuation of ADVANCE AUTO PARTS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ADVANCE AUTO PARTS INC (AAP) is 23.41 and the Price/Book (PB) ratio is 1.44.


Is the dividend of ADVANCE AUTO PARTS INC sustainable?

The dividend rating of ADVANCE AUTO PARTS INC (AAP) is 4 / 10 and the dividend payout ratio is 136.36%.