AAP

Advance Auto Parts, Inc.

Fundamental data last updated:June 3, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Specialty Retail

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/13/2026

Business Summary

Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also offers air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluids; electrical wires and fuses; electronics; floor mats, seat covers, and interior accessories; hand and specialty tools; lighting products; performance parts; sealants, adhesives and compounds; tire repair accessories; vent shades, mirrors and exterior accessories; washes, waxes and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oils; oil filters, part cleaners and treatments; and transmission fluids for engine maintenance. Further, it offers battery and wiper installation; engine light scanning and checking; electrical system testing; video clinic; oil and battery recycling; and loaner tool program services. Additionally, the company sells its products through its website. It serves professional installers and do-it-yourself customers. The company operates stores under the Advance Auto Parts, Autopart International, and Carquest brands, as well as branches under the Worldpac name. As of April 23, 2022, it operated 4,687 stores and 311 branches in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada; and served 1,318 independently owned Carquest branded stores in Mexico, Grand Cayman, the Bahamas, Turks and Caicos, and the British Virgin Islands. The company was founded in 1929 and is based in Raleigh, North Carolina.

 


VALUATION

P/E

81.76

Market Cap ($M USD)

$3.61B

Forward P/E

12.60

PEG

0.02

PRICE TO SALES

0.42

PRICE TO BOOK

1.63

EV / EBITDA

11.58

5-Year Average P/E

Free Cash Flow Yield

-4.85%

DCF Value

$22.24

Graham Number

$24.63

Price to FCF

-20.64

EV to FCF

-33.61

Earnings Yield

1.22%

FCF Yield

-4.85%

DIVIDEND

Yield

1.67%

Annual Payout

$1.00

Payout Ratio

170.45%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.73

Next Year EPS Growth Estimate

$4.75

Next Year Revenue Growth Estimate

$950.82B

Return on Equity (ROE)

2.00%

FREE CASH FLOW

Operating Margin

3.16%

Debt-to-Equity

2.38

Piotroski F-Score

6

Altman Z-Score

1.84

Return on Invested Capital (ROIC)

3.55%

Current Ratio

1.78

Quick Ratio

0.85

Net Debt to EBITDA

4.47

Interest Coverage

1.54

Gross Profit margin

44.04%

FCF PER SHARE

$-2.91

REVENUE PER SHARE

$143.64

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Advance Auto Parts, Inc. significantly. With a DCF value and Graham Number both well below the recent pricing, the stock appears overvalued. The Forward P/E of 12.17 suggests some optimism for future earnings, yet the current Earnings Yield of just 1.31% and a precarious Altman Z-score of 1.76 indicate financial fragility. The company’s high Price/Earnings ratio of 76.57 further underscores the market’s lofty expectations, which may not be justified given the low Return on Equity of 2.00%.

AI Exposure / Tech Reliance

Operating within the Specialty Retail industry, Advance Auto Parts faces challenges in integrating AI and modern tech. However, its focus on auto parts retailing may shield it from immediate disruption, as the industry relies heavily on physical inventory and customer service. The company's ability to leverage tech for inventory management and customer engagement will be crucial.

The Bull Case

For the value-driven investor, the Forward PEG ratio of 0.023 is a beacon of potential growth at a bargain. Despite a low ROIC of 2.10%, the Piotroski F-Score of 5 suggests moderate financial health. The company's Gross Profit Margin of 43.40% indicates some pricing power, while the Operating Margin of 1.87% leaves room for operational improvements. These factors could attract those seeking undervalued growth opportunities.

The Bear Case

Advance Auto Parts faces significant structural risks, with a Debt/Equity ratio of 2.38 highlighting leverage concerns. The negative Free Cash Flow Yield of -8.80% and Price to FCF of -11.37 signal cash flow struggles, raising red flags about liquidity. Trading near its 52-week high, the stock's Price/Book ratio of 1.53 and Price/Sales of 0.39 suggest it's not a deep value play, making it vulnerable to market corrections.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$59.64

Institutional Ownership %

1-Year Beta

1.08

Insider Buying % (6 Mo)

Distance to 52-Week High

16.94%

Distance to 52-Week Low

36.70%

EARNINGS SURPRISE %

97.44%

50-DAY SMA

$54.51

200-DAY SMA

$52.88

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.