Advance Auto Parts Inc (AAP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Advance Auto Parts Inc stock (AAP) is currently trading at $52.73. Advance Auto Parts Inc PE ratio is 45.04. Advance Auto Parts Inc PS ratio (Price-to-Sales) is 0.36. Analyst consensus price target for AAP is $57.45. WallStSmart rates AAP as Underperform.
- AAP PE ratio analysis and historical PE chart
- AAP PS ratio (Price-to-Sales) history and trend
- AAP intrinsic value — DCF, Graham Number, EPV models
- AAP stock price prediction 2025 2026 2027 2028 2029 2030
- AAP fair value vs current price
- AAP insider transactions and insider buying
- Is AAP undervalued or overvalued?
- Advance Auto Parts Inc financial analysis — revenue, earnings, cash flow
- AAP Piotroski F-Score and Altman Z-Score
- AAP analyst price target and Smart Rating
Advance Auto Parts Inc
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AAP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Advance Auto Parts Inc (AAP)
AAP trades 676% above its Graham fair value of $7.68, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Advance Auto Parts Inc (AAP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.
Advance Auto Parts Inc (AAP) Key Strengths (5)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
127.15% of shares held by major funds and institutions
Trading at 1.39x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Advance Auto Parts Inc (AAP) Areas to Watch (5)
Revenue declining -1.20%, a shrinking business
Earnings declining -66.40%, profits shrinking
Very low returns on shareholder equity
Near-zero operating margins, business under pressure
Very thin margins, barely profitable
Supporting Valuation Data
Advance Auto Parts Inc (AAP) Detailed Analysis Report
Overall Assessment
This company scores 49/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.0/10) while 5 fall into concern territory (avg 0.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Institutional Own.. Valuation metrics including PEG Ratio (0.64), Price/Sales (0.36), Price/Book (1.39) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Return on Equity. Growth concerns include Revenue Growth at -1.20%, EPS Growth at -66.40%, which may limit upside. Profitability pressure is visible in Return on Equity at 3.11%, Operating Margin at 3.40%, Profit Margin at 0.51%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 3.11% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -1.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Revenue Growth and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AAP Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AAP's Price-to-Sales ratio of 0.36x trades at a deep discount to its historical average of 0.75x (1th percentile). The current valuation is 76% below its historical high of 1.48x set in Dec 2014, and 8% above its historical low of 0.33x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Advance Auto Parts Inc (AAP) · CONSUMER CYCLICAL › AUTO PARTS
The Big Picture
Advance Auto Parts Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 8.6B with 120% decline year-over-year. Profit margins are strong at 51.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 311.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 51.0% and operating margin of 340.0% demonstrate strong pricing power and operational efficiency.
Revenue contracted 120% YoY. Worth determining whether this is cyclical or structural.
Free cash flow is -21M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Sector dynamics: monitor AUTO PARTS industry trends, competitive moves, and regulatory changes that could impact Advance Auto Parts Inc.
Bottom Line
Advance Auto Parts Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(28 last 3 months)
| Insider | Type | Shares |
|---|---|---|
SOLER, KRISTEN L EVP, Chief HR Officer | Sell | -45 |
| Insider | Type | Shares |
|---|---|---|
BELAND, MICHAEL SVP, Controller and CAO | Sell | -933 |
Data sourced from SEC Form 4 filings
Last updated: 8:23:22 AM
About Advance Auto Parts Inc(AAP)
NYSE
CONSUMER CYCLICAL
AUTO PARTS
USA
Advance Auto Parts, Inc. (Advance) is an American automotive aftermarket parts provider. Headquartered in Raleigh, North Carolina, it serves both professional installer and do-it-yourself (DIY) customers.