Skip to Content
Morningstar

Advance Auto Parts Inc AAP

Morningstar Rating
Unlock
Stock XNYS Rating as of
$64.44 +0.78 (1.23%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Advance’s Competitive Standing Plagued by Bloated Cost Structure, Ongoing Product Availability Woes

Noah Rohr

For the better part of the past 15 years, Advance Auto Parts has grappled with bloated expenses and supply chain inefficiencies that continue to plague its cost structure and product availability. The company’s first two attempts at a strategic turnaround failed to materialize under past CEO Darren Jackson (2008-2015) and Tom Greco (2016-2023), and the firm has recently called upon Shane O’Kelly to lead another turnaround.

Read Full Report

Price vs Fair Value

View History
AAP is trading at a 87% premium.
Price
$64.44
Fair Value
$19.00
Uncertainty
High
1-Star Price
$91.40
5-Star Price
$56.80
Economic Moat
Hsj
Capital Allocation
Rcpt

Bulls Say, Bears Say

Bulls

Advance’s top line should benefit as its sales mix skews toward the professional end market, which is a faster growing channel than DIY.

Bears

Electrification of the vehicle fleet could stymie demand for aftermarket auto parts as EVs have fewer moving parts than vehicles with an internal combustion engine.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if AAP is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$63.66
Day Range
$62.21–64.92
52-Week Range
$47.73–88.56
Bid/Ask
$64.44 / $64.89
Market Cap
$3.84 Bil
Volume/Avg
1.4 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
17.79
Price/Sales
0.34
Dividend Yield (Trailing)
1.55%
Dividend Yield (Forward)
1.55%
Total Yield
1.66%

Company Profile

Advance Auto Parts is a leading auto parts retailer in North America with over 5,000 store and branch locations. About 60% of the firm’s sales are geared toward the professional channel, with the remaining 40% going to the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units conducive to various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub and spoke distribution model critical to meeting customer needs.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Small Value
Total Number of Employees
69,000
Website
https://www.advanceautoparts.com

Competitors

Valuation

View More
Metric
AAP
AZO
ORLY
Price/Earnings (Normalized)
 17.7920.0726.49
Price/Book Value
 1.50——
Price/Sales
 0.343.003.91
Price/Cash Flow
 12.1716.9121.79
Price/Earnings
AAP
AZO
ORLY

Financial Strength

Metric
AAP
AZO
ORLY
Quick Ratio
 0.240.090.08
Current Ratio
 1.220.790.71
Interest Coverage
 1.218.8615.11
Quick Ratio
AAP
AZO
ORLY

Profitability

Metric
AAP
AZO
ORLY
Return on Assets (Normalized)
 —16.56%17.66%
Return on Equity (Normalized)
 ———
Return on Invested Capital (Normalized)
 —44.88%44.24%
Return on Assets
AAP
AZO
ORLY
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Specialty Retail Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
O'Reilly Automotive Inc
ORLY
ZbxqtvqlNppq$61.5 Bil
 AutoZone Inc
AZO
XsdpqmwxkRlcxj$51.0 Bil
 Tractor Supply Co
TSCO
MnmhkqktXpb$30.1 Bil
 Williams-Sonoma Inc
WSM
QskfvpdmKyq$19.3 Bil
 Best Buy Co Inc
BBY
SvqgdpzgJlflrl$19.2 Bil
 Ulta Beauty Inc
ULTA
NzyvgjnrWbdyrs$19.1 Bil
 Dick's Sporting Goods Inc
DKS
NjlpjvzjzNjnf$17.4 Bil
 Bath & Body Works Inc
BBWI
BndhyjjPthbzr$8.8 Bil
 RH Class A
RH
RwcpsjdpWtnch$5.3 Bil

Sponsor Center