Advance Auto Parts, Inc.
- Open
- 55.21
- Day high
- 55.80
- Day low
- 54.16
- Prev close
- 52.04
- Volume
- 530K
- Mkt cap
- $3.3B
- P/E (TTM)
- 74.0
- EPS (TTM)
- $0.73
- P/B
- 1.5
- P/S
- 0.4
- Yield
- 1.84%
- Per share
- $1.00
Advance Auto Parts, Inc. (AAP) is a Consumer Cyclical company listed on NYSE. The stock is down 19% over the past year.
Advance Auto Parts, Inc. (AAP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AAP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 21, 2026 | $0.39 | $0.77 | +97.4% | $2.6B | +27.6% |
| Feb 13, 2026 | $0.41 | $0.86 | +109.8% | $2.0B | -23.4% |
| Oct 30, 2025 | $0.74 | $0.92 | +24.3% | $2.0B | +2.6% |
| Aug 14, 2025 | $0.59 | $0.69 | +16.9% | $2.0B | +1.7% |
| May 22, 2025 | $-0.81 | $-0.22 | +72.8% | $2.6B | +30.8% |
| Feb 26, 2025 | $-1.38 | $-1.18 | +14.5% | $2.0B | -21.0% |
| Nov 14, 2024 | $0.50 | $-0.04 | -108.1% | $2.1B | -17.9% |
| Aug 22, 2024 | $0.94 | $0.75 | -20.2% | $2.7B | +0.4% |
| May 29, 2024 | $0.68 | $0.67 | -1.5% | $3.4B | -0.6% |
| Feb 28, 2024 | $0.24 | $-0.59 | -345.8% | $2.5B | +0.0% |
| Nov 15, 2023 | $1.42 | $-0.82 | -157.7% | $2.7B | +10.3% |
| Aug 23, 2023 | $1.66 | $1.44 | -13.3% | $2.7B | +0.9% |
AAP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | Starnes Bruceofficer: EVP, CMO | Tax | 3,003 | $62.18 |
| Jun 16, 2026 | Soler Kristen Lofficer: EVP, Chief HR Officer | Tax | 759 | $60.80 |
| Jun 4, 2026 | Windom Brentdirector | Grant | 3,209 | $57.65 |
| Jun 4, 2026 | JAMISON CYNTHIA Tdirector | Grant | 3,686 | $57.65 |
| Jun 4, 2026 | Hilson Joan Mdirector | Grant | 3,209 | $57.65 |
| Jun 4, 2026 | Johnson Richard Adirector | Grant | 4,163 | $57.65 |
| Jun 4, 2026 | Ferraro John Francisdirector | Grant | 3,209 | $57.65 |
| Jun 4, 2026 | Seboldt Thomas Wdirector | Grant | 87 | $57.65 |
| Jun 4, 2026 | Seboldt Thomas Wdirector | Grant | 3,209 | $57.65 |
| Jun 4, 2026 | Smith Gregory Ldirector | Grant | 3,209 | $57.65 |
| Jun 4, 2026 | LEE EUGENE I JRdirector | Grant | 2,602 | $57.65 |
| Jun 4, 2026 | Bailo Carla Jeandirector | Grant | 3,209 | $57.65 |
| Jun 4, 2026 | LEE EUGENE I JRdirector | Grant | 3,209 | $57.65 |
| Apr 28, 2026 | Seboldt Thomas Wdirector | Grant | 29 | $58.18 |
| Apr 28, 2026 | Windom Brentdirector | Grant | 28 | $58.18 |
Source: AAP SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full AAP insider & 13F page →Advance Auto Parts, Inc. company profile
Overview
Advance Auto Parts, Inc. (NYSE:AAP) is one of the largest automotive aftermarket parts retailers in North America, founded in 1929 and headquartered in Raleigh, North Carolina. The company went public in 2001 and has grown through both organic expansion and acquisitions to become a major player in the automotive parts retail industry. Currently operating over 4,600 stores across the United States, Puerto Rico, and Canada, AAP serves both professional installers and do-it-yourself customers through multiple retail brands including Advance Auto Parts, Autopart International, and Carquest.
Business
Advance Auto Parts operates in the automotive aftermarket industry, which encompasses the sale of replacement parts, accessories, and maintenance items for vehicles after they leave the original manufacturer. The automotive aftermarket is a massive industry that benefits from the aging vehicle fleet - as cars get older, they require more frequent repairs and maintenance, creating steady demand for replacement parts. The company's core business revolves around providing automotive replacement parts and accessories for domestic and imported cars, vans, SUVs, and light and heavy-duty trucks. Their product portfolio includes essential vehicle components such as batteries and battery accessories, brakes and brake pads, belts and hoses, engine parts, exhaust systems, ignition components, and steering and alignment parts. Beyond mechanical parts, they also offer maintenance items like motor oils, filters, antifreeze, and various automotive chemicals and fluids. AAP operates through two primary customer channels that represent distinct business segments. The Professional (Pro) channel serves commercial customers including independent repair shops, quick-lube operators, and other automotive service providers who purchase parts for customer vehicles. The Do-It-Yourself (DIY) channel targets individual consumers who perform their own vehicle maintenance and repairs. Based on recent earnings calls, the Pro channel appears to generate roughly 45-50% of total sales, while DIY accounts for the remaining 50-55%, though the company has been focusing more heavily on growing its Professional business due to its higher margins and growth potential. The company also provides various services including battery and wiper installation, engine diagnostic scanning, electrical system testing, oil and battery recycling, and loaner tool programs to support both customer segments.
Revenue model
Advance Auto Parts generates revenue primarily through direct product sales across its retail locations and e-commerce platform. The company operates on a traditional retail model where it purchases automotive parts and accessories from manufacturers and suppliers, then sells them to customers at marked-up prices. Revenue comes from both walk-in retail sales at physical stores and online orders through their website. The company's customers fall into two main categories with different purchasing behaviors and price sensitivities. Professional customers typically make larger, more frequent purchases and often buy parts on credit terms, valuing speed of service, product availability, and technical support over price. DIY customers are generally more price-sensitive and make smaller, less frequent purchases, often shopping around for the best deals on parts they need for weekend projects or basic maintenance. Several factors significantly impact the company's margins and profitability. Commodity costs and tariffs represent major headwinds, with the company facing approximately 30% blended tariff rates on imported products, requiring ongoing vendor negotiations and alternative sourcing strategies. Competitive pricing pressure particularly affects the Professional channel, where AAP must match competitor pricing to retain commercial accounts. Product mix plays a crucial role, as higher-margin owned-brand products (currently around 50% of sales) and professional-grade parts generate better profitability than commodity items. Seasonal factors also influence performance, with winter weather driving demand for batteries, heating systems, and winter maintenance products, while spring and summer boost sales of air conditioning components and performance parts. Economic conditions affect both channels differently - economic downturns may hurt DIY discretionary spending but can boost demand for repairs as consumers delay new vehicle purchases. The age of the vehicle fleet serves as a long-term tailwind, as older vehicles require more frequent repairs and maintenance, supporting sustained demand for aftermarket parts.
Competitive moat
Advance Auto Parts operates in a highly competitive and fragmented industry with limited sustainable competitive advantages. The company's primary moat comes from its extensive physical store network and distribution infrastructure, which provides geographic convenience and rapid parts availability that pure e-commerce players struggle to match. Professional customers particularly value the ability to quickly obtain parts during repairs, and AAP's thousands of locations create some switching costs for established commercial accounts. The company's relationships with professional customers provide some defensive characteristics, as repair shops often prefer to work with familiar suppliers who understand their credit needs, provide technical support, and maintain consistent inventory. AAP's scale also enables it to negotiate better terms with suppliers and maintain broader product assortments than smaller competitors. However, this moat is relatively weak and faces significant threats. Amazon and other e-commerce platforms are increasingly competitive on price and convenience for DIY customers, particularly for common maintenance items that don't require immediate availability. Large competitors like AutoZone and O'Reilly Automotive operate similar business models with comparable scale and often superior execution, particularly in the higher-margin Professional channel where AAP has historically underperformed. The industry also faces potential disruption from electric vehicle adoption, which could reduce demand for many traditional automotive parts like oil filters, spark plugs, and exhaust components over the long term. Additionally, manufacturer consolidation and direct-to-consumer sales could potentially bypass traditional aftermarket retailers, though this threat appears more distant. Overall, while AAP benefits from some network effects and customer relationships, the company operates in a commodity-like business with intense competition and limited pricing power, suggesting a relatively narrow and vulnerable competitive moat.
Risks & safety
The company presents moderate financial risk with mixed solvency indicators and challenging operational performance. **Liquidity and Debt:** - Strong cash position of $1.67 billion provides substantial liquidity buffer - Current ratio of 1.27 indicates adequate short-term liquidity coverage - High debt-to-equity ratio of 1.67 reflects significant leverage - Recent Worldpac sale generated $1.5 billion in proceeds, improving financial flexibility **Operational Cash Flow:** - Negative operating cash flow in recent quarters raises concerns about cash generation - Free cash flow has been volatile and recently negative - EBITDA of $76 million in Q1 2025 shows weak but positive operational performance **Valuation Metrics:** - Trading at 0.87x book value suggests potential undervaluation - EV/EBITDA of 12.8x appears reasonable given current low profitability - Recent losses make traditional P/E ratios less meaningful **Other Considerations:** - Major restructuring including 500+ store closures creates execution risk - Tariff exposure of ~30% on imported goods pressures margins - Turnaround plan targeting 7% operating margins by 2027 remains unproven
Recent development
Over the past few years, Advance Auto Parts has undergone significant strategic transformation as the company struggled with underperformance relative to competitors. The most notable development was the $1.5 billion sale of the Worldpac business to Carlyle Group, which provided substantial liquidity and allowed management to focus on the core retail operations. The company has embarked on an ambitious three-year turnaround plan targeting 7% operating margins by 2027, built around three strategic pillars. The merchandising pillar involves implementing a new assortment framework focused on vehicle park composition and parts availability, with early pilots showing nearly 50 basis points of sales growth in test markets. The supply chain transformation represents a massive undertaking to consolidate from 38 distribution centers down to just 12-16 facilities while building out a network of 60 market hub stores by mid-2027 to improve local parts availability and delivery speed. The third pillar focuses on store operations optimization, including the closure of approximately 500 underperforming corporate stores and 200 independent locations to focus resources on markets where AAP can achieve #1 or #2 market density. The company has also revamped compensation structures for sales teams and invested $50 million in frontline employees to reduce turnover and improve customer service. Recent quarters have shown mixed progress, with the Professional channel demonstrating positive momentum while the DIY business continues to face headwinds from consumer spending pressure and competitive dynamics. Management has implemented strategic pricing investments of $100 million to become more competitive while working to mitigate tariff impacts through vendor negotiations and alternative sourcing strategies.
AAP company profile · for informational purposes only — not investment advice.
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