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Upturn AI SWOT - About
AAP 
Advance Auto Parts Inc (AAP)
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Upturn Advisory Summary
09/17/2025: AAP (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
28 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $53.35
1 Year Target Price $53.35
| 1 | Strong Buy |
| 0 | Buy |
| 25 | Hold |
| 2 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 18.83% | Avg. Invested days 39 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.79B USD | Price to earnings Ratio - | 1Y Target Price 53.35 |
Price to earnings Ratio - | 1Y Target Price 53.35 | ||
Volume (30-day avg) 28 | Beta 1.09 | 52 Weeks Range 28.55 - 70.00 | Updated Date 09/17/2025 |
52 Weeks Range 28.55 - 70.00 | Updated Date 09/17/2025 | ||
Dividends yield (FY) 1.56% | 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 - | When - | Estimate - | Actual - |
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 24.1 | Enterprise Value 5838234048 | Price to Sales(TTM) 0.43 |
Enterprise Value 5838234048 | Price to Sales(TTM) 0.43 | ||
Enterprise Value to Revenue 0.67 | Enterprise Value to EBITDA 16.2 | Shares Outstanding 59984900 | Shares Floating 59517064 |
Shares Outstanding 59984900 | Shares Floating 59517064 | ||
Percent Insiders 0.97 | Percent Institutions 129.36 |
Upturn AI SWOT
Advance Auto Parts Inc
Company Overview
History and Background
Advance Auto Parts was founded in 1932 in Roanoke, Virginia, by Arthur Taubman. Initially, it was a small chain of stores. Over the decades, it expanded through acquisitions and organic growth, becoming one of the largest automotive aftermarket parts providers in North America.
Core Business Areas
- Retail: Sale of automotive replacement parts, accessories, batteries, and maintenance items to do-it-yourself (DIY) customers through a network of retail stores.
- Commercial: Sale of automotive parts and related products to professional installers (e.g., garages, service stations, fleet repair shops) through a dedicated sales force and distribution network.
- Carquest: Operates Carquest stores as part of its distribution and retail network, serving both professional installers and DIY customers.
Leadership and Structure
As of November 2024, the leadership team is headed by Shane O'Kelly (President and CEO). The organizational structure is hierarchical, with regional and district managers overseeing store operations and sales teams.
Top Products and Market Share
Key Offerings
- Batteries: Automotive batteries for various vehicle types. Competitors include Interstate Batteries, Optima, and Exide. Market share varies by region. Revenue not publicly broken out.
- Brakes: Brake pads, rotors, calipers, and other braking components. Competitors include Wagner, Raybestos, and Brembo. Market share varies by product line. Revenue not publicly broken out.
- Engine Oil & Fluids: Motor oil, transmission fluid, antifreeze, and other automotive fluids. Competitors include Valvoline, Pennzoil, and Mobil 1. Market share varies by product line. Revenue not publicly broken out.
- Filters: Oil filters, air filters, fuel filters, and cabin air filters. Competitors include Fram, Bosch, and Purolator. Market share varies by product line. Revenue not publicly broken out.
Market Dynamics
Industry Overview
The automotive aftermarket industry is characterized by stable demand, driven by the aging vehicle fleet and increased vehicle miles traveled. The industry is competitive, with a mix of national chains, regional players, and independent stores. Growth is influenced by economic conditions and technological advancements in vehicles.
Positioning
Advance Auto Parts holds a strong position in the automotive aftermarket industry, with a focus on both the DIY and professional installer segments. Its competitive advantages include a large store network, brand recognition, and a comprehensive product offering.
Total Addressable Market (TAM)
The US automotive aftermarket is estimated at over $400 billion. Advance Auto Parts is positioned to capture a significant share of this TAM through its retail and commercial segments.
Upturn SWOT Analysis
Strengths
- Extensive Store Network
- Strong Brand Recognition
- Comprehensive Product Offering
- Focus on Both DIY and Professional Segments
Weaknesses
- Inconsistent Execution Across Stores
- Supply Chain Challenges
- Competitive Pricing Pressures
- High Debt Load
Opportunities
- E-commerce Expansion
- Strategic Acquisitions
- Growth in Electric Vehicle (EV) Parts
- Expansion of Commercial Business
Threats
- Economic Downturn
- Increased Competition from Online Retailers
- Fluctuations in Raw Material Costs
- Changes in Vehicle Technology
Competitors and Market Share
Key Competitors
- ORLY
- AZO
- GPC
Competitive Landscape
Advance Auto Parts competes primarily with O'Reilly Automotive (ORLY) and AutoZone (AZO). Advance is working to improve its operational efficiency and customer service. They need to innovate to keep pace with the market.
Major Acquisitions
DieHard Brand
- Year: 2019
- Acquisition Price (USD millions): 200
- Strategic Rationale: Acquired the DieHard brand name from Sears to strengthen battery category and leverage brand recognition.
Growth Trajectory and Initiatives
Historical Growth: Advance Auto Parts has experienced moderate growth in revenue over the past decade, driven by store expansion and acquisitions. However, profitability has fluctuated.
Future Projections: Analysts project moderate revenue growth of 2-4% annually over the next few years, driven by e-commerce expansion and growth in the commercial segment. Profitability is expected to improve with cost optimization efforts.
Recent Initiatives: Recent initiatives include expanding the e-commerce platform, optimizing the supply chain, and focusing on the professional installer segment.
Summary
Advance Auto Parts is a major player in the automotive aftermarket, facing challenges with profitability and shareholder returns. While its extensive network and brand recognition are strengths, it needs to address operational inefficiencies and compete effectively with online retailers. Strategic initiatives focused on e-commerce and the commercial segment are crucial for future growth. The company must also manage its debt load carefully. The stock has been under performing in recent years.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10K, 10Q), Investor Presentations, Earnings Calls, Industry Reports, Analyst Reports (e.g., from Yahoo Finance, MarketWatch, etc.)
Disclaimers:
The information provided is for informational purposes only and should not be construed as financial advice. Market conditions and company performance are subject to change. Consult a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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.
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