(AAP) Advance Auto Parts - Overview
Sector: Consumer Cyclical | Industry: Auto Parts | Exchange: NYSE (USA) | Market Cap: 3.537m USD | Total Return: 19.1% in 12m
Avg Turnover: 92.0M
Qual. Beats: 2
Rev. Trend: -98.2%
Qual. Beats: 0
Warnings
High Debt/EBITDA (12.2) with thin interest coverage (0.3)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.3 is critical
Extended 3d Choppy Below Avwap Earnings
Tailwinds
Confidence
Advance Auto Parts, Inc. (AAP) is a major retailer of automotive aftermarket parts, accessories, and maintenance items. The company operates a dual-channel business model, serving both professional installers and do-it-yourself (DIY) retail customers across North America and the Caribbean. Its inventory spans critical mechanical components, such as engines and brakes, as well as consumables like motor oil and filters.
The automotive aftermarket sector is traditionally resilient during economic downturns, as consumers often opt to repair existing vehicles rather than purchase new ones. To support customer retention, AAP provides value-added services including battery installation, engine light scanning, and a loaner tool program. These services are essential for capturing market share in the technical DIY segment.
For more detailed technical analysis and historical performance data, consider reviewing the metrics available on ValueRay.
Founded in 1929 and headquartered in Raleigh, North Carolina, the company maintains an extensive physical footprint through Advance Auto Parts and Carquest branded stores. This physical presence is integrated with an e-commerce platform to facilitate omnichannel distribution to a broad geographic market.
- Supply chain restructuring and distribution center consolidation impact operating margins
- Professional installer segment growth faces competition from O’Reilly and AutoZone
- Sale of Worldpac asset provides liquidity for core retail turnaround efforts
- Elevated inventory costs and pricing pressure weigh on free cash flow
- Average vehicle age expansion drives demand for aftermarket maintenance and repair
| Net Income: 44.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -1.60 > 1.0 |
| NWC/Revenue: 36.20% < 20% (prev 16.25%; Δ 19.95% < -1%) |
| CFO/TA -0.00 > 3% & CFO -46.0m > Net Income 44.0m |
| Net Debt (3.91b) to EBITDA (320.0m): 12.23 < 3 |
| Current Ratio: 1.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (60.8m) vs 12m ago 1.77% < -2% |
| Gross Margin: 43.40% > 18% (prev 0.37%; Δ 4.30k% > 0.5%) |
| Asset Turnover: 76.04% > 50% (prev 84.22%; Δ -8.18% > 0%) |
| Interest Coverage Ratio: 0.35 > 6 (EBITDA TTM 320.0m / Interest Expense TTM 139.0m) |
| A: 0.26 (Total Current Assets 7.29b - Total Current Liabilities 4.18b) / Total Assets 11.8b |
| B: 0.35 (Retained Earnings 4.15b / Total Assets 11.8b) |
| C: 0.00 (EBIT TTM 48.0m / Avg Total Assets 11.3b) |
| D: 0.53 (Book Value of Equity 5.14b / Total Liabilities 9.63b) |
| Altman-Z'' = 3.46 = A |
| DSRI: 0.74 (Receivables 380.0m/544.0m, Revenue 8.60b/9.09b) |
| GMI: 0.86 (GM 43.40% / 37.49%) |
| AQI: 0.94 (AQ_t 0.09 / AQ_t-1 0.10) |
| SGI: 0.95 (Revenue 8.60b / 9.09b) |
| TATA: 0.01 (NI 44.0m - CFO -46.0m) / TA 11.8b) |
| Beneish M = -3.43 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 57.95 with a total of 3,002,858 shares traded.
Over the past week, the price has changed by +22.85%,
over one month by -0.40%,
over three months by +8.23% and
over the past year by +19.14%.
Advance Auto Parts has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold AAP.
- StrongBuy: 1
- Buy: 0
- Hold: 25
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 57.1 | -1.4% |
P/E Trailing = 51.8761
P/E Forward = 21.1864
P/S = 0.4112
P/B = 1.5981
P/EG = 1.5143
Revenue TTM = 8.60b USD
EBIT TTM = 48.0m USD
EBITDA TTM = 320.0m USD
Long Term Debt = 3.41b USD (from longTermDebt, last quarter)
Short Term Debt = 435.0m USD (from shortTermDebt, last quarter)
Debt = 7.04b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.81b
Net Debt = 3.91b USD (calculated: Debt 7.04b - CCE 3.12b)
Enterprise Value = 7.45b USD (3.54b + Debt 7.04b - CCE 3.12b)
Interest Coverage Ratio = 0.35 (Ebit TTM 48.0m / Interest Expense TTM 139.0m)
EV/FCF = -25.00x (Enterprise Value 7.45b / FCF TTM -298.0m)
FCF Yield = -4.00% (FCF TTM -298.0m / Enterprise Value 7.45b)
FCF Margin = -3.46% (FCF TTM -298.0m / Revenue TTM 8.60b)
Net Margin = 0.51% (Net Income TTM 44.0m / Revenue TTM 8.60b)
Gross Margin = 43.40% ((Revenue TTM 8.60b - Cost of Revenue TTM 4.87b) / Revenue TTM)
Gross Margin QoQ = 44.04% (prev 43.27%)
Tobins Q-Ratio = 0.63 (Enterprise Value 7.45b / Total Assets 11.8b)
Interest Expense / Debt = 1.98% (Interest Expense 139.0m / Debt 7.04b)
Taxrate = 21.0% (US default 21%)
NOPAT = 37.9m (EBIT 48.0m * (1 - 21.00%))
Current Ratio = 1.75 (Total Current Assets 7.29b / Total Current Liabilities 4.18b)
Debt / Equity = 3.20 (Debt 7.04b / totalStockholderEquity, last quarter 2.20b)
Debt / EBITDA = 12.23 (Net Debt 3.91b / EBITDA 320.0m)
Debt / FCF = -13.13 (negative FCF - burning cash) (Net Debt 3.91b / FCF TTM -298.0m)
Total Stockholder Equity = 2.20b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.39% (Net Income 44.0m / Total Assets 11.8b)
RoE = 2.00% (Net Income TTM 44.0m / Total Stockholder Equity 2.20b)
RoCE = 0.86% (EBIT 48.0m / Capital Employed (Equity 2.20b + L.T.Debt 3.41b))
RoIC = 0.47% (NOPAT 37.9m / Invested Capital 8.00b)
WACC = 4.52% (E(3.54b)/V(10.6b) * Re(10.42%) + D(7.04b)/V(10.6b) * Rd(1.98%) * (1-Tc(0.21)))
Discount Rate = 10.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.33 | Cagr: 0.98%
[DCF] Fair Price = unknown (Cash Flow -298.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.05 | # QB: 2
Revenue Correlation: -98.18 | Revenue CAGR: -10.64% | SUE: 0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.84 | Chg30d=+4.70% | Revisions=+56% | Analysts=21
EPS next Quarter (2026-09-30): EPS=0.94 | Chg30d=+1.23% | Revisions=-11% | Analysts=21
EPS current Year (2026-12-31): EPS=2.80 | Chg30d=+1.79% | Revisions=+33% | GrowthEPS=+23.9% | GrowthRev=-0.5%
EPS next Year (2027-12-31): EPS=3.94 | Chg30d=+0.64% | Revisions=-9% | GrowthEPS=+40.8% | GrowthRev=+2.5%
[Analyst] Revisions Ratio: +56%