Advance Auto Parts Inc (AAP) Stock Guide

Last Sunday
25

Before we start: if you're looking for AAP stock price, you can quickly find it out by visiting Finny and typing "AAP quote". If you're looking for a quick scoop on AAP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AAP". You'll get all this info in one place. Or you can just type "AAP news" to get the latest stock news.

Looking to buy or sell Advance Auto Parts Inc (AAP)? Interested in getting the full scoop on AAP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AAP stock guide, we'll address key questions about AAP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AAP earnings?
2. When is AAP earnings date?
3. What is AAP dividend?
4. What is AAP dividend yield?
5. What is AAP stock forecast (i.e., prediction)?
6. AAP buy or sell? What is AAP Finny Score?
7. What are the reasons to buy AAP? Why should I buy AAP stock?
8. What are the reasons to sell AAP? Why should I sell AAP stock?
9. What are AAP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AAP earnings?

AAP trailing 12-month earnings per share (EPS) is $6.84.

2. When is AAP earnings date?

AAP earnings date is August 11, 2020.

3. What is AAP dividend?

AAP forward dividend is $1.00.

4. What is AAP dividend yield?

AAP forward dividend yield is 0.84%.

Analyst Predictions

5. What is AAP stock forecast (i.e., prediction)?

Based on AAP analyst price targets, AAP stock forecast is $126.69 (for a year from now). That means the average analyst price target for AAP stock is $126.69. The prediction is based on 27 analyst estimates.

The low price target for AAP is $95.00, while the high price target is $159.00.

AAP analyst rating is Hold.

Analysis

6. AAP buy or sell? What is AAP Finny Score?

Our quantitative analysis shows 2 reasons to buy and 6 reasons to sell AAP, resulting in Finny Score of 25.

7. What are the reasons to buy AAP? Why should I buy AAP stock?

Here are the reasons to buy AAP stock:

  • The industry should consolidate around national retail chains that are able to efficiently provide more reliable and comprehensive part availability than smaller peers; Advance should benefit from this trend for years to come.
  • Industry-wide tailwinds persist, with miles driven growth, an aging vehicle fleet, and low unemployment bolstering sales.
  • AAP forward dividend yield is 0.84%, higher than the industry (0.26%) and sector (0.58%) forward dividend yields. See AAP forward dividend chart.
  • AAP Price/Book ratio is 2.35, which is low compared to its industry peers’ P/B ratios. See AAP forward Price/Book ratio chart.

8. What are the reasons to sell AAP? Why should I sell AAP stock?

Let's look at the reasons to sell AAP stock (i.e., the bear case):

  • With the General Parts integration ending, Advance’s new management team has an opportunity to reduce long-standing performance gaps with peers, boosting margins as it optimizes its supply chain and distribution practices.
  • The General Parts integration exacerbated Advance’s existing performance gaps with peers, with the disruption contributing to sales declines and margin pressure in 2016.
  • The current consolidation opportunity will reward firms that convert competitor accounts more quickly; if the revitalization takes longer than expected, Advance could miss a growth opportunity.
  • Increasing reliance on commercial sales, along with attendant investment in daily store inventory replenishment, will act as a moderate margin headwind that Advance will have to work to overcome.
  • AAP quarterly revenue growth was 0.40%, lower than the industry and sector average revenue growth (1.17% and 1.35%, respectively). See AAP revenue growth chart.
  • AAP profitability is declining. The YoY profit margin change was -0.65 percentage points. See AAP profitability chart.
  • AAP PEG ratio (P/E adjusted for growth) is 2.47, which is high compared to its industry peers’ PEG ratios. See AAP PEG chart.
  • AAP average analyst price target ($126.69) is below its current price ($134.45). See AAP price target chart.
  • AAP short interest (days to cover the shorts) ratio is 1.57. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AAP short interest ratio chart.
  • AAP cash to debt ratio is 0.13, lower than the average industry (0.16) and sector (0.14) cash to debt ratio. See AAP cash to debt chart.

Key Stats

9. What are AAP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AAP:

Metrics AAP
Price $145.70
Average Price Target / Upside $126.69 / -13.05%
Average Analyst Rating Hold
Forward Dividend Yield 0.84%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 71,000
Market Cap $8.37B
Forward P/E Ratio 14.18
Price/Book Ratio 0.86
Revenue (TTM) $9.71B
YoY Quarterly Revenue Growth 0.40%
Profit Margin 5.01%

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