Advance Auto Parts Inc.
Find Ratings ReportsADVANCE AUTO PARTS INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. ADVANCE AUTO PARTS INC has very weak liquidity. Currently, the Quick Ratio is 0.33 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, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 17.11% 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 | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Net Sales ($mil) | 2036.99 | 2082.89 |
| EBITDA ($mil) | 161.42 | 175.36 |
| EBIT ($mil) | 104.91 | 116.23 |
| Net Income ($mil) | 184.5 | 62.37 |
| Balance Sheet | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 546.94 | 135.18 |
| Total Assets ($mil) | 8482.3 | 8315.03 |
| Total Debt ($mil) | 1044.68 | 1043.26 |
| Equity ($mil) | 3415.2 | 2916.19 |
| Profitability | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Gross Profit Margin | 45.66 | 46.41 |
| EBITDA Margin | 7.92 | 8.41 |
| Operating Margin | 5.15 | 5.58 |
| Sales Turnover | 1.11 | 1.15 |
| Return on Assets | 5.6 | 5.52 |
| Return on Equity | 13.92 | 15.76 |
| Debt | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Current Ratio | 1.56 | 1.41 |
| Debt/Capital | 0.23 | 0.26 |
| Interest Expense | 13.14 | 13.37 |
| Interest Coverage | 7.99 | 8.7 |
| Share Data | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Shares outstanding (mil) | 73.94 | 73.75 |
| Div / share | 0.06 | 0.06 |
| EPS | 2.49 | 0.84 |
| Book value / share | 46.19 | 39.54 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1283172.0 | 1770100.0 |
HOLD. This stock's P/E ratio indicates a discount compared to an average of 25.10 for the Specialty Retail industry and a discount compared to the S&P 500 average of 24.51. To use another comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 3.18 and a significant discount versus the industry average of 59.98. The price-to-sales ratio is well below both the S&P 500 average and 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 |
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Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AAP 16.38 | Peers 25.10 | AAP 12.94 | Peers 14.74 | |||||||||||||||||||||
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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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| AAP 13.87 | Peers 17.39 | AAP 3.63 | Peers 0.96 | |||||||||||||||||||||
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Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. AAP is trading at a valuation on par with 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. |
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| Price/Book |
|
Earnings Growth |
|
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| AAP 2.28 | Peers 59.98 | AAP 3.71 | Peers -6.28 | |||||||||||||||||||||
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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 significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AAP is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| AAP 0.83 | Peers 1.55 | AAP -2.03 | Peers 5.82 | |||||||||||||||||||||
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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 |
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