Advance Auto Parts Inc

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AAP : NYSE : Services
$174.79 | %
Today's Range: 173.52 - 175.86
Avg. Daily Volume: 1081800.0
01/13/17 - 4:02 PM ET

Financial Analysis

ADVANCE AUTO PARTS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. ADVANCE AUTO PARTS INC has very weak liquidity. Currently, the Quick Ratio is 0.21 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 18.34% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2248.862295.2
EBITDA ($mil)268.16295.72
EBIT ($mil)208.16234.08
Net Income ($mil)113.84120.47

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)119.49105.35
Total Assets ($mil)8414.658181.54
Total Debt ($mil)1043.011293.7
Equity ($mil)2855.722413.08

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin46.6147.67
EBITDA Margin11.9212.88
Operating Margin9.2610.2
Sales Turnover1.131.22
Return on Assets5.376.14
Return on Equity15.8320.84
Debt Q3 FY16 Q3 FY15
Current Ratio1.371.27
Interest Expense13.5814.38
Interest Coverage15.3316.27

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)73.6573.23
Div / share0.060.06
Book value / share38.7732.95
Institutional Own % n/a n/a
Avg Daily Volume1066074.0995284.0


BUY. ADVANCE AUTO PARTS INC's P/E ratio indicates a premium compared to an average of 22.21 for the Specialty Retail industry and a premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 4.50 indicates a significant premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 14.02. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AAP 28.65 Peers 22.21   AAP 22.19 Peers 13.98

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AAP is trading at a significant premium to its peers.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AAP 22.51 Peers 21.03   AAP 2.16 Peers 2.04

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AAP is trading at a premium to its peers.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AAP 4.50 Peers 14.02   AAP -10.58 Peers -15.95

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AAP 1.35 Peers 1.49   AAP -4.25 Peers 7.65

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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