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Advance Auto Parts Inc
AAP : NYSE : Services

$120.84 | %
Today's Range: 119.07 - 122.34
Avg. Daily Volume: 880,200
04/17/14 - 4:01 PM ET

Financial Analysis


ADVANCE AUTO PARTS INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ADVANCE AUTO PARTS INC has weak liquidity. Currently, the Quick Ratio is 0.50 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.23% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)1408.811329.2
EBITDA ($mil)161.58158.97
EBIT ($mil)113.85113.2
Net Income ($mil)49.2765.06


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)1112.47598.11
Total Assets ($mil)5564.774613.81
Total Debt ($mil)1053.58605.09
Equity ($mil)1516.211210.69


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin53.253.34
EBITDA Margin11.4611.96
Operating Margin8.088.52
Sales Turnover1.171.34
Return on Assets7.038.4
Return on Equity25.8332.02
Debt Q4 FY13 Q4 FY12
Current Ratio1.441.24
Debt/Capital0.410.33
Interest Expense8.07.99
Interest Coverage14.2314.16


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)72.8473.38
Div / share0.060.06
EPS0.670.88
Book value / share20.8216.5
Institutional Own % n/a n/a
Avg Daily Volume887286.0918669.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 22.42 for the Specialty Retail industry and a premium compared to the S&P 500 average of 18.29. For additional comparison, its price-to-book ratio of 5.70 indicates a significant premium versus the S&P 500 average of 2.52 and a discount versus the industry average of 5.80. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. The valuation analysis reveals that, ADVANCE AUTO PARTS INC appears to be valued on par with the investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AAP 22.25 Peers 22.42   AAP 15.85 Peers 16.50

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AAP is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AAP is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AAP 14.33 Peers 17.85   AAP 0.54 Peers 1.48

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AAP is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AAP trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AAP 5.70 Peers 5.80   AAP 2.10 Peers 24.07

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AAP is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AAP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AAP 1.33 Peers 1.30   AAP 4.65 Peers 6.55

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AAP is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AAP significantly trails its peers on the basis of sales growth

 

 

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