2.15%
5.29%
39.51%
-21.38%
-25.52%
-78.49%
-62.21%
AI Spotlight on AAP
Company Description
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.
Market Data
| Last Price | 49.79 |
| Change Percentage | 2.15% |
| Open | 49.24 |
| Previous Close | 48.74 |
| Market Cap ( Millions) | 2974 |
| Volume | 1901483 |
| Year High | 88.56 |
| Year Low | 35.59 |
| M A 50 | 44.42 |
| M A 200 | 53.16 |
Financial Ratios
| FCF Yield | 7.73% |
| Dividend Yield | 2.01% |
| ROE | 0.95% |
| Debt / Equity | 146.55% |
| Net Debt / EBIDTA | 888.35% |
| Price To Book | 1.14 |
| Price Earnings Ratio | 121.23 |
| Price To FCF | 12.93 |
| Price To sales | 0.28 |
| EV / EBITDA | 16.79 |
News
- Jan -20 - Advance Auto Parts Puts Foot On Turnaround Gas With 200 Store Closures
- Jan -16 - Advance Auto Parts: Retail Trends Suggest Big Gains Ahead
- Dec -20 - Advance Auto Parts Appoints Michael Beland as Chief Accounting Officer
- Nov -29 - Here's Why You Should Offload Advance Auto From Your Portfolio
- Nov -20 - New Strong Sell Stocks for November 20th
- Nov -17 - Advance Auto Parts: Undervalued Turnaround Stock With Major Margin Expansion Ahead
- Nov -16 - Can This $1.2 Billion Deal Turn a Longtime Losing Stock Into a Winner?
- Nov -15 - Advance Auto Parts Aims to Boost Productivity by Closing Stores
- Nov -14 - Advance Auto Parts will close over 700 stores as the list of struggling retailers grows
- Nov -14 - Advance Auto Parts, Inc. (AAP) Q3 2024 Earnings Call Transcript
- Nov -14 - Stock Of The Day: Why Is Advance Auto Rallying On A Loss?
- Nov -14 - Advance Auto Parts shutting 500 stores, cutting jobs as fewer opt to repair cars
- Nov -14 - Advance Auto Parts Stock Rises. Closing Stores Matters More Than a Bad Quarter.
- Nov -14 - Advance Auto Incurs Unexpected Q3 Loss, Cuts 2024 Guidance
- Nov -14 - Advance Auto Parts to Close Hundreds of Stores; Stock Jumps
- Nov -14 - Advance Auto Parts (AAP) Reports Q3 Earnings: What Key Metrics Have to Say
- Nov -14 - Advance Auto Parts (AAP) Reports Q3 Loss, Misses Revenue Estimates
- Nov -14 - Advance Auto Parts Posts Weak Results, Joins Harrow, Taysha Gene Therapies And Other Big Stocks Moving Lower In Thursday's Pre-Market Session
- Nov -14 - Advance Auto Parts to close more than 500 stores, exit 200 other locations
- Nov -14 - Advance Auto Parts Reports Third Quarter 2024 Results and Completes Comprehensive Review of Operational Productivity
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Parts and Batteries
Expected Growth : 1.8 %
What the company do ?
Advance Auto Parts, Inc.'s Parts and Batteries segment offers a wide range of aftermarket auto parts, accessories, and batteries for DIY and professional customers.
Why we expect these perspectives ?
Advance Auto Parts' 1.8% growth in Parts and Batteries is driven by increasing demand for DIY and professional repair services, expansion of online sales channels, and strategic partnerships with key suppliers. Additionally, the company's focus on improving inventory management and supply chain efficiency has enabled it to better meet customer needs and capitalize on market opportunities.
Segment n°2 -> Accessories and Chemicals
Expected Growth : 1.5 %
What the company do ?
Accessories and Chemicals from Advance Auto Parts, Inc. include car care products, air fresheners, and cleaning solutions for vehicle maintenance and appearance enhancement.
Why we expect these perspectives ?
Advance Auto Parts, Inc.'s Accessories and Chemicals segment growth of 1.5% is driven by increasing demand for DIY car maintenance, rising average vehicle age, and growing popularity of e-commerce platforms. Additionally, the company's strategic investments in digital capabilities, expanded product offerings, and strong supplier relationships contribute to the segment's growth.
Segment n°3 -> Engine Maintenance
Expected Growth : 2.2 %
What the company do ?
Engine Maintenance from Advance Auto Parts, Inc. offers a range of products and services to help maintain and repair vehicle engines, including oil changes, filter replacements, and belt replacements.
Why we expect these perspectives ?
The 2.2% growth in Engine Maintenance from Advance Auto Parts, Inc. is driven by increasing vehicle age, rising miles driven, and growing demand for DIY repair and maintenance. Additionally, the company's strategic initiatives, such as its loyalty program and online platform enhancements, contribute to the segment's growth.
Segment n°4 -> Other
Expected Growth : 1.9 %
What the company do ?
Other from Advance Auto Parts, Inc. refers to the company's non-automotive and non-Tools, Storage & Fuel categories, including commercial and industrial products.
Why we expect these perspectives ?
Advance Auto Parts, Inc.'s 1.9% growth in 'Other' segment is driven by increasing demand for DIY and commercial vehicle repair services, expansion of online platforms, and strategic partnerships with key suppliers. Additionally, the company's focus on improving customer experience and investing in digital capabilities have contributed to this growth.
Advance Auto Parts, Inc. Products
| Product Range | What is it ? |
|---|---|
| Auto Parts | Replacement parts for vehicles, including batteries, brakes, belts, and hoses |
| Accessories | Add-on products to enhance vehicle appearance and functionality, such as floor mats, seat covers, and steering wheel covers |
| Chemicals and Fluids | Lubricants, coolants, and other chemicals for vehicle maintenance and repair |
| Tools and Equipment | Hand tools, power tools, and diagnostic equipment for DIY and professional mechanics |
| Performance and Racing | High-performance parts and accessories for enthusiasts and racing applications |
| Collision Repair | Parts and materials for repairing and refinishing vehicles after accidents or damage |
| Commercial and Fleet Solutions | Customized solutions for commercial fleets, including parts, maintenance, and repair services |
Advance Auto Parts, Inc.'s Porter Forces
Threat Of Substitutes
Advance Auto Parts, Inc. faces moderate threat from substitutes, as customers can opt for alternative sources for auto parts, such as online retailers or salvage yards. However, the company's strong brand recognition and wide range of products mitigate this threat to some extent.
Bargaining Power Of Customers
Advance Auto Parts, Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's wide range of products and services makes it difficult for customers to switch to alternative suppliers.
Bargaining Power Of Suppliers
Advance Auto Parts, Inc. relies on a large network of suppliers for its products. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.
Threat Of New Entrants
The auto parts retail industry has high barriers to entry, including significant capital requirements and complex logistics. This makes it difficult for new entrants to compete with established players like Advance Auto Parts, Inc.
Intensity Of Rivalry
The auto parts retail industry is highly competitive, with several established players competing for market share. Advance Auto Parts, Inc. faces intense rivalry from competitors like O'Reilly Automotive and AutoZone, which can lead to pricing pressure and advertising wars.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 46.97% |
| Debt Cost | 3.95% |
| Equity Weight | 53.03% |
| Equity Cost | 10.22% |
| WACC | 7.27% |
| Leverage | 88.56% |
Advance Auto Parts, Inc. : Quality Control
Advance Auto Parts, Inc. passed 1 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| RH | RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child … |
| ETSY | Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com … |
| W | Wayfair Inc. engages in the e-commerce business in the United States and internationally. The company provides approximately thirty-three million products for the home sector under various brands. It offers online … |
| ULTA | Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon … |
| CVNA | Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's platform allows customers to research and identify a … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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RH
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Ulta Beauty
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Etsy
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Advance Auto Parts
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5
Wayfair
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6
