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Advance Auto Parts Inc (AAP)

Upturn stock ratingUpturn stock rating
$60.52
Last Close (24-hour delay)
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PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

08/28/2025: AAP (2-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

28 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $52.6

1 Year Target Price $52.6

Analysts Price Target For last 52 week
$52.6 Target price
52w Low $28.55
Current$60.52
52w High $70

Analysis of Past Performance

Type Stock
Historic Profit 18.83%
Avg. Invested days 39
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/28/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.65B USD
Price to earnings Ratio -
1Y Target Price 52.6
Price to earnings Ratio -
1Y Target Price 52.6
Volume (30-day avg) 28
Beta 1.08
52 Weeks Range 28.55 - 70.00
Updated Date 08/28/2025
52 Weeks Range 28.55 - 70.00
Updated Date 08/28/2025
Dividends yield (FY) 1.65%
Basic EPS (TTM) -10

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-08-20
When Before Market
Estimate 0.5381
Actual 0.69

Profitability

Profit Margin -4.37%
Operating Margin (TTM) 2.54%

Management Effectiveness

Return on Assets (TTM) -0.26%
Return on Equity (TTM) -24.78%

Valuation

Trailing PE -
Forward PE 48.78
Enterprise Value 5634285229
Price to Sales(TTM) 0.42
Enterprise Value 5634285229
Price to Sales(TTM) 0.42
Enterprise Value to Revenue 0.64
Enterprise Value to EBITDA 16.2
Shares Outstanding 59984900
Shares Floating 59517064
Shares Outstanding 59984900
Shares Floating 59517064
Percent Insiders 0.97
Percent Institutions 129.57

ai summary icon Upturn AI SWOT

Advance Auto Parts Inc

stock logo

Company Overview

overview logo History and Background

Advance Auto Parts was founded in 1932 by Arthur Taubman in Roanoke, Virginia. Initially a small chain, it grew through strategic acquisitions and store expansions, becoming a leading automotive aftermarket parts provider in North America.

business area logo Core Business Areas

  • Retail: Sells automotive parts, batteries, accessories, and maintenance items to do-it-yourself (DIY) customers through its network of stores and online.
  • Commercial: Supplies automotive parts and related products to professional installers (e.g., garages, dealerships) through its commercial business, often under the Carquest brand.

leadership logo Leadership and Structure

Advance Auto Parts is led by Shane O'Kelly (President and CEO). The organizational structure includes various departments such as Merchandising, Operations, Finance, and Technology.

Top Products and Market Share

overview logo Key Offerings

  • Batteries: Automotive batteries are a key product category. Competitors include AutoZone, O'Reilly Automotive, and Walmart. Market share data is difficult to pinpoint exactly due to the fragmented nature of the market.
  • Brakes: Brake pads, rotors, and calipers are important for vehicle maintenance and repair. Competitors include AutoZone, O'Reilly Automotive, and national tire retailers. Market share data is fragmented.
  • Motor Oil: Various brands and grades of motor oil. Competition is fierce among AutoZone, O'Reilly, Walmart and Amazon.
  • Filters: Oil, air, fuel, and cabin filters are essential replacement parts. Competition among AutoZone, O'Reilly, Walmart and Amazon.

Market Dynamics

industry overview logo Industry Overview

The automotive aftermarket industry is large and relatively stable, driven by the increasing age of vehicles on the road and the demand for maintenance and repair parts. The industry is also seeing increased competition from online retailers and changing consumer preferences.

Positioning

Advance Auto Parts is a leading player in the automotive aftermarket, positioned to serve both DIY customers and professional installers. Its competitive advantages include its extensive store network, brand recognition, and relationships with commercial customers.

Total Addressable Market (TAM)

The U.S. automotive aftermarket is estimated to be over $300 billion. Advance Auto Parts captures a portion of this TAM through its retail and commercial operations.

Upturn SWOT Analysis

Strengths

  • Extensive store network
  • Strong brand recognition
  • Established commercial business
  • DIY and professional customer base

Weaknesses

  • Inconsistent execution in some areas
  • Inventory management challenges
  • Integration issues with acquisitions
  • Highly leveraged.

Opportunities

  • Growth in the aging vehicle fleet
  • Expansion of online sales
  • Strategic acquisitions
  • Growing demand for electric vehicle parts

Threats

  • Competition from online retailers
  • Economic downturns
  • Fluctuations in raw material costs
  • Changing consumer preferences

Competitors and Market Share

competitor logo Key Competitors

  • AZO
  • ORLY
  • GPC

Competitive Landscape

Advance Auto Parts competes with AutoZone and O'Reilly primarily by offering similar products and services to both DIY and professional customers. AAP needs to execute better to improve margins and customer experience.

Major Acquisitions

Worldpac

  • Year: 2014
  • Acquisition Price (USD millions): 2005
  • Strategic Rationale: Expanded Advance's reach into the import parts market and strengthened its relationships with professional installers.

Growth Trajectory and Initiatives

Historical Growth: Advance Auto Parts has grown through organic store expansion and strategic acquisitions.

Future Projections: Analyst estimates vary, but generally project moderate revenue growth and improved profitability.

Recent Initiatives: Recent initiatives include e-commerce investments, supply chain optimization, and strategic acquisitions. Please check their latest news for more information.

Summary

Advance Auto Parts is a major player in the automotive aftermarket, but faces execution challenges. It has a strong store network and brand, but needs to improve operational efficiency to compete more effectively with rivals, especially online competitors. The company must look out for any economic downturns.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • SEC Filings (10-K, 10-Q)
  • Company Press Releases
  • Industry Reports
  • Analyst Reports

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It is not financial advice. Market share data is estimated and may vary.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Advance Auto Parts Inc

Exchange NYSE
Headquaters Raleigh, NC, United States
IPO Launch date 2001-11-29
President, CEO & Director Mr. Shane M. O'Kelly
Sector Consumer Cyclical
Industry Auto Parts
Full time employees 33200
Full time employees 33200

Advance Auto Parts, Inc. engages in the provision of automotive aftermarket parts in the United States and internationally. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wire; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also provides air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluid; electrical wire and fuses; electronics; floor mats, seat covers and interior accessories; hand and specialty tools; lighting; performance parts; sealants, adhesives and compounds; tire repair accessories; vent shades, mirrors and exterior accessories; washes, waxes and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oil; oil filters; part cleaners and treatments; and transmission fluid. Further, it provides battery and wiper installation; engine light scanning and checking; electrical system testing, including batteries, starters, and alternators; oil and battery recycling; and loaner tool program services. The company serves professional installers and do-it-yourself customers. It operates stores under the Advance Auto Parts and Carquest names. The company has stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada; and independently owned Carquest branded stores in Mexico and the Caribbean Islands. Advance Auto Parts, Inc. was founded in 1929 and is based in Raleigh, North Carolina.