ADVANCE AUTO PARTS INC's gross profit margin for the second quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ADVANCE AUTO PARTS INC has very weak liquidity. Currently, the Quick Ratio is 0.18 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 32.54% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||2347.7||1549.55|
|Net Income ($mil)||139.49||116.87|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||67.45||520.97|
|Total Assets ($mil)||7969.53||4852.29|
|Total Debt ($mil)||1868.49||605.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||47.99||53.39|
|Return on Assets||5.52||8.1|
|Return on Equity||24.26||28.72|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||72.98||72.84|
|Div / share||0.06||0.06|
|Book value / share||24.86||18.8|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||734584.0||737820.0|
BUY. The current P/E ratio indicates a discount compared to an average of 23.04 for the Specialty Retail industry and a premium compared to the S&P 500 average of 19.69. For additional comparison, its price-to-book ratio of 5.38 indicates a significant premium versus the S&P 500 average of 2.72 and a discount versus the industry average of 6.47. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ADVANCE AUTO PARTS INC proves to trade at a discount to investment alternatives within the industry.
|AAP 22.35||Peers 23.04||AAP 17.57||Peers 18.37|
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.
|AAP 15.57||Peers 19.35||AAP 0.50||Peers 1.96|
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.
|AAP 5.38||Peers 6.47||AAP 12.38||Peers 20.38|
Discount. 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 discount to 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.
|AAP 1.18||Peers 1.34||AAP 29.82||Peers 6.68|
Discount. 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 discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AAP has a sales growth rate that significantly exceeds its peers.
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