AAP official logo AAP
AAP 3-star rating from Upturn Advisory
Advance Auto Parts Inc (AAP) company logo

Advance Auto Parts Inc (AAP)

Advance Auto Parts Inc (AAP) 3-star rating from Upturn Advisory
$50.22
Last Close (24-hour delay)
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PASS
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Upturn Stock price based on last close icon Stock price based on last close
*as per simulation
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Upturn Advisory Summary

11/13/2025: AAP (3-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

Upturn 3 star rating for performance

Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Number of Analysts

4 star rating from financial analysts

28 Analysts rated it

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

1 Year Target Price $54.25

1 Year Target Price $54.25

Analysts Price Target For last 52 week
$54.25 Target price
52w Low $28.4
Current$50.22
52w High $69.65

Analysis of Past Performance

Type Stock
Historic Profit 18.82%
Avg. Invested days 39
Today’s Advisory PASS
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/13/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.06B USD
Price to earnings Ratio -
1Y Target Price 54.25
Price to earnings Ratio -
1Y Target Price 54.25
Volume (30-day avg) 28
Beta 1.17
52 Weeks Range 28.40 - 69.65
Updated Date 11/12/2025
52 Weeks Range 28.40 - 69.65
Updated Date 11/12/2025
Dividends yield (FY) 1.96%
Basic EPS (TTM) -10.22

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 2025-11-13
When Before Market
Estimate 0.76
Actual 0.92

Profitability

Profit Margin -4.37%
Operating Margin (TTM) 2.9%

Management Effectiveness

Return on Assets (TTM) 0.01%
Return on Equity (TTM) -23.87%

Valuation

Trailing PE -
Forward PE 20.04
Enterprise Value 5149334939
Price to Sales(TTM) 0.36
Enterprise Value 5149334939
Price to Sales(TTM) 0.36
Enterprise Value to Revenue 0.6
Enterprise Value to EBITDA 16.2
Shares Outstanding 60022245
Shares Floating 59536065
Shares Outstanding 60022245
Shares Floating 59536065
Percent Insiders 0.95
Percent Institutions 127.47

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Advance Auto Parts Inc

Advance Auto Parts Inc(AAP) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Advance Auto Parts, Inc. was founded in 1932 by Arthur Taubman in Roanoke, Virginia. It started with a single store and has grown through acquisitions and organic expansion to become a leading automotive aftermarket parts provider in North America.

Company business area logo Core Business Areas

  • Retail: Sale of automotive parts, accessories, batteries, and maintenance items to do-it-yourself (DIY) customers through its stores and online.
  • Commercial: Sale of automotive parts and related products to professional installers, garages, and service stations.

leadership logo Leadership and Structure

The leadership team includes the Chief Executive Officer, Chief Financial Officer, and other key executives. The organizational structure includes retail operations, commercial operations, supply chain, and support functions.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Batteries: Automotive batteries for various vehicles. Competitors include AutoZone, O'Reilly Automotive. Market share and exact revenue breakdown are not publicly available at this granular level. Dominate in commercial segment and have expanded to retail market. Competitors for this would be O'Reilly, and AutoZone
  • Brakes: Brake pads, rotors, calipers, and related hardware. Competitors include AutoZone, O'Reilly Automotive. Market share and exact revenue breakdown are not publicly available at this granular level.
  • Motor Oil and Fluids: Various types and grades of motor oil, antifreeze, and other automotive fluids. Competitors include AutoZone, O'Reilly Automotive, Walmart, and Amazon. Market share and exact revenue breakdown are not publicly available at this granular level.

Market Dynamics

industry overview logo Industry Overview

The automotive aftermarket industry is characterized by demand driven by vehicle age, miles driven, and complexity of vehicle technology. It is moderately fragmented with large national players and smaller independent retailers.

Positioning

Advance Auto Parts is one of the leading players in the automotive aftermarket, competing on breadth of product assortment, store network, and customer service. Its competitive advantages include its strong commercial business and established brand reputation.

Total Addressable Market (TAM)

The U.S. automotive aftermarket TAM is estimated to be over $300 billion. Advance Auto Parts captures a portion of this market, facing competition from other large retailers and smaller independent shops.

Upturn SWOT Analysis

Strengths

  • Extensive store network
  • Strong commercial business
  • Established brand recognition
  • Supply chain capabilities
  • DIY and Professional Customer Focus

Weaknesses

  • Inconsistent Execution of Store Operations
  • Inventory management issues
  • Profitability compared to peers

Opportunities

  • Growth in e-commerce
  • Expansion into new geographic markets
  • Increased demand for electric vehicle parts
  • Growing average vehicle age
  • Partnerships with automotive service providers

Threats

  • Competition from online retailers
  • Economic downturn
  • Fluctuations in raw material prices
  • Shifting consumer preferences

Competitors and Market Share

Key competitor logo Key Competitors

  • AZO
  • ORLY
  • GPC

Competitive Landscape

Advance Auto Parts faces intense competition from other large retailers and online marketplaces. It competes on price, product assortment, and customer service.

Major Acquisitions

General Parts International (Carquest)

  • Year: 2014
  • Acquisition Price (USD millions): 2040
  • Strategic Rationale: Expanded Advance Auto Parts' presence in the commercial segment and added a significant number of stores.

Growth Trajectory and Initiatives

Historical Growth: Advance Auto Parts has grown through organic store expansion and acquisitions. Growth has been affected recently by inflationary pressures and supply chain issues.

Future Projections: Analyst estimates vary but generally project moderate growth in revenue and earnings, driven by market growth and operational improvements.

Recent Initiatives: Recent initiatives include focusing on improving customer experience, optimizing store operations, and expanding digital capabilities.

Summary

Advance Auto Parts is a significant player in the automotive aftermarket with a strong presence in both retail and commercial sectors. While it benefits from an extensive store network and brand recognition, it faces challenges in profitability and operational efficiency. Capitalizing on e-commerce growth and strategic partnerships will be crucial for future success amidst increasing competition and economic uncertainties. AAP has good potential but needs to improve operational effectiveness.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company SEC Filings
  • Industry Reports
  • Analyst Estimates
  • Market Research Reports

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It should not be considered investment advice. Market share data are estimates and may vary. Financial data might not be fully complete

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries 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.