0.47 | 0.56%
ADVANCE AUTO PARTS INC's gross profit margin for the first 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 very weak liquidity. Currently, the Quick Ratio is 0.26 which clearly 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 29.81% 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 2015.3 | 1957.29 |
| EBITDA ($mil) | 268.1 | 280.36 |
| EBIT ($mil) | 204.07 | 224.56 |
| Net Income ($mil) | 121.79 | 133.51 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 407.72 | 364.08 |
| Total Assets ($mil) | 4747.49 | 4045.11 |
| Total Debt ($mil) | 604.95 | 600.65 |
| Equity ($mil) | 1270.45 | 978.65 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 53.2 | 52.95 |
| EBITDA Margin | 13.3 | 14.32 |
| Operating Margin | 10.13 | 11.47 |
| Sales Turnover | 1.32 | 1.54 |
| Return on Assets | 7.91 | 10.34 |
| Return on Equity | 29.59 | 42.77 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.21 | 1.19 |
| Debt/Capital | 0.32 | 0.38 |
| Interest Expense | 10.66 | 9.85 |
| Interest Coverage | 19.14 | 22.79 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 72.96 | 73.44 |
| Div / share | 0.06 | 0.06 |
| EPS | 1.65 | 1.79 |
| Book value / share | 17.41 | 13.33 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 754658.0 | 868422.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.87 for the Specialty Retail industry and a discount compared to the S&P 500 average of 18.91. For additional comparison, its price-to-book ratio of 4.75 indicates a significant premium versus the S&P 500 average of 2.42 and a discount versus the industry average of 5.44. 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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AAP 16.29 | Peers 21.87 | AAP 10.36 | Peers 14.53 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AAP is trading at a significant discount to its peers. |
Discount. 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 significant discount to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AAP 13.63 | Peers 19.55 | AAP 3.27 | Peers 1.43 | |||||||||||||||||||||
|
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. |
Premium. 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 premium to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| AAP 4.75 | Peers 5.44 | AAP -8.64 | Peers 23.05 | |||||||||||||||||||||
|
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. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| AAP 0.96 | Peers 1.32 | AAP 0.53 | Peers 10.00 | |||||||||||||||||||||
|
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 significant discount to 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 |
|||||||||||||||||||||||
