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86.16 (1y: +23%)
Market Cap 6.29 B P/E(ttm) 16.50
Enterprise Value 6.3 B P/B 5.24
AAP- NYSE (USA)
Advance Auto Parts Inc
  • Currently 5/5
Business Predictability Rank: 5-Star
Back Testing Results:
Average gain of all 5-Star stocks: 12.1% per year.
% of Stocks that are in still loss if held for 10yrs: 3%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$86.16
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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry		 vs
history
Cash to Debt 0.988
AAP's Cash to Debt is ranked lower than
61% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.99 vs. AAP: 0.988 )
AAP' s 10-Year Cash to Debt Range
Min: 0.02   Max: No Debt
Current: 0.99
Equity to Asset 0.24
AAP's Equity to Asset is ranked lower than
78% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.42 vs. AAP: 0.24 )
AAP' s 10-Year Equity to Asset Range
Min: 0.1   Max: 0.4
Current: 0.24
0.1
0.4
Interest Coverage 19.4
AAP's Interest Coverage is ranked lower than
55% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 71.00 vs. AAP: 19.4 )
AAP' s 10-Year Interest Coverage Range
Min: 0   Max: 22
Current: 19.4
0
22
F-Score: 6
Z-Score: 3.26
M-Score: -1.67
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry		 vs
history
Operating margin (%) 10.60
AAP's Operating margin (%) is ranked higher than
82% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.20 vs. AAP: 10.60 )
AAP' s 10-Year Operating margin (%) Range
Min: 1.4   Max: 10.8
Current: 10.6
1.4
10.8
Net-margin (%) 6.2
AAP's Net-margin (%) is ranked higher than
78% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.15 vs. AAP: 6.2 )
AAP' s 10-Year Net-margin (%) Range
Min: -1.3   Max: 6.4
Current: 6.2
-1.3
6.4
ROE (%) 32
AAP's ROE (%) is ranked higher than
92% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.00 vs. AAP: 32 )
AAP' s 10-Year ROE (%) Range
Min: -18.9   Max: 46.5
Current: 32
-18.9
46.5
ROA (%) 8.4
AAP's ROA (%) is ranked higher than
78% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.80 vs. AAP: 8.4 )
AAP' s 10-Year ROA (%) Range
Min: -1.9   Max: 10.8
Current: 8.4
-1.9
10.8
ROC (Joel Greenblatt) (%) 49.80
AAP's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.80 vs. AAP: 49.80 )
AAP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 7.5   Max: 52.3
Current: 49.8
7.5
52.3
Revenue Growth (%) 10.2
AAP's Revenue Growth (%) is ranked higher than
93% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.90 vs. AAP: 10.2 )
AAP' s 10-Year Revenue Growth (%) Range
Min: 3.7   Max: 10.4
Current: 10.2
3.7
10.4
EBITDA Growth (%) 15.8
AAP's EBITDA Growth (%) is ranked higher than
91% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.10 vs. AAP: 15.8 )
AAP' s 10-Year EBITDA Growth (%) Range
Min: 5.2   Max: 71.9
Current: 15.8
5.2
71.9
EPS Growth (%) 16.5
AAP's EPS Growth (%) is ranked higher than
89% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.65 vs. AAP: 16.5 )
AAP' s 10-Year EPS Growth (%) Range
Min: 4.1   Max: 89
Current: 16.5
4.1
89
ยป AAP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

AAP Guru Trades in Q2 2012

Jim Simons 219,250 sh (New)
George Soros 7,000 sh (New)
Mario Gabelli 12,000 sh (New)
Daniel Loeb 741,100 sh (New)
Joel Greenblatt 48,848 sh (+338.96%)
Richard Blum 397,500 sh (+23.26%)
Jeremy Grantham 69,800 sh (+9.06%)
Ruane Cunniff 7,241,430 sh (+0.87%)
Tom Russo 400 sh (unchged)
RS Investment Management Sold Out
Ray Dalio Sold Out
Chuck Royce 14,220 sh (-8.32%)
John Keeley 22,990 sh (-14.65%)
Paul Tudor Jones 4,800 sh (-23.81%)
Meridian Funds 670,485 sh (-25.15%)
Steven Cohen 5,399 sh (-99.61%)
» More
Q3 2012

AAP Guru Trades in Q3 2012

Ray Dalio 18,532 sh (New)
RS Investment Management 99,800 sh (New)
Private Capital 176,685 sh (New)
Steven Cohen 20,500 sh (+279.7%)
Jim Simons 281,950 sh (+28.6%)
Mario Gabelli 15,000 sh (+25%)
Tom Russo 400 sh (unchged)
George Soros Sold Out
Daniel Loeb Sold Out
Paul Tudor Jones Sold Out
Meridian Funds Sold Out
Ruane Cunniff 7,223,245 sh (-0.25%)
Joel Greenblatt 42,828 sh (-12.32%)
Richard Blum 343,358 sh (-13.62%)
John Keeley 18,800 sh (-18.23%)
Jeremy Grantham 52,600 sh (-24.64%)
Chuck Royce 8,340 sh (-41.35%)
» More
Q4 2012

AAP Guru Trades in Q4 2012

Richard Perry 1,000,000 sh (New)
Steven Cohen 243,905 sh (+1089.78%)
Jim Simons 473,950 sh (+68.1%)
Mario Gabelli 16,000 sh (+6.67%)
Ruane Cunniff 7,224,561 sh (+0.02%)
Jeremy Grantham 3,044 sh (unchged)
Richard Blum 343,358 sh (unchged)
RS Investment Management Sold Out
John Keeley Sold Out
Ray Dalio Sold Out
Private Capital 167,505 sh (-5.2%)
Chuck Royce 4,640 sh (-44.36%)
Joel Greenblatt 23,068 sh (-46.14%)
» More
Q1 2013

AAP Guru Trades in Q1 2013

Ray Dalio 23,432 sh (New)
Louis Moore Bacon 30,650 sh (New)
Jeremy Grantham 15,744 sh (+417.21%)
Chuck Royce 13,161 sh (+183.64%)
Jim Simons 634,750 sh (+33.93%)
Private Capital 202,130 sh (+20.67%)
Ruane Cunniff 7,229,243 sh (+0.06%)
Richard Blum 324,900 sh (-5.38%)
Mario Gabelli 13,000 sh (-18.75%)
Richard Perry 797,840 sh (-20.22%)
Joel Greenblatt 5,381 sh (-76.67%)
Steven Cohen 5,775 sh (-97.63%)
» More
» Details

Insider Trades

Latest Guru Trades with AAP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Richard Perry 2013-03-31 Reduce -20.22%0.55%$71.76 - $82.65 $ 86.1613%797840
Private Capital 2013-03-31 Add 20.67%0.27%$71.76 - $82.65 $ 86.1613%202130
Joel Greenblatt 2013-03-31 Reduce -76.67%0.07%$71.76 - $82.65 $ 86.1613%5381
Ray Dalio 2013-03-31 New Buy0.02%$71.76 - $82.65 $ 86.1613%23432
Richard Perry 2012-12-31 New Buy2.7%$66.15 - $81 $ 86.1618%1000000
Joel Greenblatt 2012-12-31 Reduce -46.14%0.09%$66.15 - $81 $ 86.1618%23068
John Keeley 2012-12-31 Sold Out 0.03%$66.15 - $81 $ 86.1618%0
Ray Dalio 2012-12-31 Sold Out 0.02%$66.15 - $81 $ 86.1618%0
Meridian Funds 2012-09-30 Sold Out 1.5%$66.88 - $73.91 $ 86.1623%0
Daniel Loeb 2012-09-30 Sold Out 1.5%$66.88 - $73.91 $ 86.1623%0
Private Capital 2012-09-30 New Buy1%$66.88 - $73.91 $ 86.1623%176685
Ray Dalio 2012-09-30 New Buy0.02%$66.88 - $73.91 $ 86.1623%18532
George Soros 2012-09-30 Sold Out 0.01%$66.88 - $73.91 $ 86.1623%0
Mario Gabelli 2012-09-30 Add 25%$66.88 - $73.91 $ 86.1623%15000
Daniel Loeb 2012-06-30 New Buy1.5%$63.01 - $92.26 $ 86.168%741100
Meridian Funds 2012-06-30 Reduce -25.15%0.6%$63.01 - $92.26 $ 86.168%670485
Joel Greenblatt 2012-06-30 Add 338.96%0.19%$63.01 - $92.26 $ 86.168%48848
Ray Dalio 2012-06-30 Sold Out 0.05%$63.01 - $92.26 $ 86.168%0
George Soros 2012-06-30 New Buy0.01%$63.01 - $92.26 $ 86.168%7000
Mario Gabelli 2012-06-30 New Buy0.01%$63.01 - $92.26 $ 86.168%12000
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Advance Auto Parts Inc

RS Investments Comments on AAP - Jul 18, 2012

From RS Investments Value Fund's second-quarter commentary:

Advance Auto Parts (AAP) is the second largest auto parts retailer in the U.S. operating over 3,600 stores in 39 states. The company sells primarily non-discretionary automotive parts such as car batteries, brake pads, spark plugs, and mufflers to both do-it-yourself customers as well as commercial garages via its parts-delivery truck service. Our investment in Advanced Auto Parts was predicated on the following thesis: (1) solid industry fundamentals with acyclical demand drivers, defensible competitive positioning, and reasonable reinvestments opportunities; (2) a companyspecific opportunity to meaningfully improve the Company's financial performance as measured by sales productivity, operating margins, asset turns, and overall Return on Invested Capital (ROIC) relative to its two primary competitors (AutoZone and O'Reilly); and (3) a new leadership team with a solid business plan for narrowing this performance gap.

At the time of our initial investment in 2007, Advanced Auto Parts was operating with sales-persquare- foot of $180, operating margins of 8.5%, a payables-to-inventory ratio of 50%, and was generating reinvestment cash flow of approximately $280 million on an invested capital base of $1.6 billion. Through successful implementation of a wide variety of operating initiatives, including greater parts availability, enhanced price optimization, better vendor terms, and improved labor productivity, CEO Darren Jackson and his team meaningfully improved the financial performance of the company. Today, Advanced Auto Parts operates with sales of $230 per foot, operating margins approaching 11%, a payables-to-inventory ratio of 80%, and is generating reinvestment cash flows of approximately $460 million on a reduced invested capital base of $1.4 billion. Overall company ROIC has improved from 13-14% in 2007 to approximately 20% today. Advanced Auto Parts' share price has tracked this improvement in ROIC, appreciating from a stock that traded in the high $30s at the time of our initial investment to $90 per share more recently. Over the past five years we have both added to and trimmed our position size, depending on the relative risk/reward in the market, and we ultimately exited the position at the beginning of the second quarter at a substantial gain.

Check out RS Investment Management latest stock trades

Top Ranked Articles about Advance Auto Parts Inc

RS Investments Comments on AAP
July 18, 2012
From RS Investments Value Fund's second-quarter commentary: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 16.50
AAP's P/E(ttm) is ranked higher than
84% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 18.51 vs. AAP: 16.50 )
AAP' s 10-Year P/E(ttm) Range
Min: 9.97   Max: 125.98
Current: 16.5
9.97
125.98
P/B 5.24
AAP's P/B is ranked lower than
85% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.40 vs. AAP: 5.24 )
AAP' s 10-Year P/B Range
Min: 2.35   Max: 7.48
Current: 5.24
2.35
7.48
P/S 1.03
AAP's P/S is ranked lower than
68% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.50 vs. AAP: 1.03 )
AAP' s 10-Year P/S Range
Min: 0.43   Max: 1.28
Current: 1.03
0.43
1.28
PFCF 15.41
AAP's PFCF is ranked higher than
61% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.90 vs. AAP: 15.41 )
AAP' s 10-Year PFCF Range
Min: 6.34   Max: 118.97
Current: 15.41
6.34
118.97
EV-to-EBIT 9.58
AAP's EV-to-EBIT is ranked higher than
88% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 12.56 vs. AAP: 9.58 )
AAP' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 61.3
Current: 9.58
6.8
61.3
PEG 0.8
AAP's PEG is ranked higher than
96% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.87 vs. AAP: 0.8 )
AAP' s 10-Year PEG Range
Min: 0.58   Max: 2.14
Current: 0.8
0.58
2.14
Shiller P/E 22.72
AAP's Shiller P/E is ranked higher than
82% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 17.09 vs. AAP: 22.72 )
AAP' s 10-Year Shiller P/E Range
Min: 12.22   Max: 27.97
Current: 22.72
12.22
27.97

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.28
AAP's Dividend Yield is ranked lower than
57% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.86 vs. AAP: 0.28 )
AAP' s 10-Year Dividend Yield Range
Min: 0.14   Max: 0.93
Current: 0.28
0.14
0.93
Dividend Payout 0.1
AAP's Dividend Payout is ranked higher than
99% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.69 vs. AAP: 0.1 )
AAP' s 10-Year Dividend Payout Range
Min: 0.05   Max: 0.11
Current: 0.1
0.05
0.11
Yield on cost (5-Year) 0.30
AAP's Yield on cost (5-Year) is ranked lower than
58% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.93 vs. AAP: 0.30 )
AAP' s 10-Year Yield on cost (5-Year) Range
Min: 0.14   Max: 0.93
Current: 0.3
0.14
0.93
Share Buyback Rate 6.1
AAP's Share Buyback Rate is ranked higher than
97% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: -0.40 vs. AAP: 6.1 )
AAP' s 10-Year Share Buyback Rate Range
Min: 6.1   Max: -11.9
Current: 6.1

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 5
AAP's Price/Net Current Asset Value is ranked higher than
70% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.70 vs. AAP: 5 )
AAP' s 10-Year Price/Net Current Asset Value Range
Min: 2.7   Max: 6.5
Current: 5
2.7
6.5
Price/Tangible Book 5.7
AAP's Price/Tangible Book is ranked higher than
90% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.30 vs. AAP: 5.7 )
AAP' s 10-Year Price/Tangible Book Range
Min: 3.2   Max: 7.3
Current: 5.7
3.2
7.3
Price/DCF (Projected) 0.9
AAP's Price/DCF (Projected) is ranked higher than
80% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.00 vs. AAP: 0.9 )
AAP' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 1.9
Current: 0.9
0.8
1.9
Price/Median PS Value 1.3
AAP's Price/Median PS Value is ranked higher than
82% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.80 vs. AAP: 1.3 )
AAP' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.4
Current: 1.3
0.7
1.4
Price/Peter Lynch Fair Value 0.8
AAP's Price/Peter Lynch Fair Value is ranked higher than
90% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.20 vs. AAP: 0.8 )
AAP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.7   Max: 1.7
Current: 0.8
0.7
1.7
Price/Graham Number 2
AAP's Price/Graham Number is ranked higher than
83% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.60 vs. AAP: 2 )
AAP' s 10-Year Price/Graham Number Range
Min: 1.4   Max: 4.3
Current: 2
1.4
4.3
Earnings Yield (Greenblatt) 10.40
AAP's Earnings Yield (Greenblatt) is ranked higher than
91% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.60 vs. AAP: 10.40 )
AAP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.6   Max: 14.7
Current: 10.4
1.6
14.7
Forward Rate of Return (Yacktman) 24.41
AAP's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.22 vs. AAP: 24.41 )
AAP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 11.9   Max: 27.9
Current: 24.41
11.9
27.9

Business Description

Advance Auto Parts, Inc. was founded in 1929 as Advance Stores Company, Incorporated. It is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items mainly operating within the United States. Its stores carry an extensive product line for cars, vans, sport utility vehicles and light trucks. The Company serves both 'do-it-yourself," or DIY, and 'do-it-for-me,' or Commercial, customers. It operates in two reportable segments: Advance Auto Parts, or AAP, and Autopart International, or AI. At December 31, 2011, it operated 3,460 AAP stores within the United States, Puerto Rico and the Virgin Islands. It operated 3,434 stores throughout 39 states in the Northeastern, Southeastern and Midwestern regions of the United States. These stores operated under the 'Advance Auto Parts' trade name except for certain stores in the state of Florida, which operated under the 'Advance Discount Auto Parts' trade name. These stores offer a broad selection of brand name and proprietary automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars and light trucks. In addition, it operated 26 stores under the 'Western Auto' and 'Advance Auto Parts' trade names, located in Puerto Rico and the Virgin Islands, or Offshore. AI's business mainly serves the Commercial market, with an emphasis on parts for imported cars, from its store locations located mainly throughout the Northeastern and Mid-Atlantic regions of the United States and Florida. In addition, its North American Sales Division serves warehouse distributors and jobbers throughout North America. The vast majority of AI's product is sold under its own proprietary brand. The AI stores offer approximately 30,000 SKUs through routine replenishment from its supply chain with access to an additional 100,000 to 120,000 SKUs through local sourcing networks. The Company owns a number of trade names and own and have federally registered several service marks and trademarks, including "Advance Auto Parts," "Advance Discount Auto Parts," "Western Auto," "Parts America," "Autopart International," "PDQ" and "Service is its best part," for use in connection with the automotive parts retailing business. Its primary competitors are both national and regional retail chains of automotive parts stores, including AutoZone, Inc., O'Reilly Automotive, Inc. and The Pep Boys-Manny, Moe & Jack. The Company is subject to various federal, state and local laws and governmental regulations relating to the operation of its business, including those governing recycling of automotive lead-acid batteries and used automotive oil, and ownership and operation of real property.
Company Website
SEC Reports
Industry: Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO
Traded in other countries:AWN.Germany
ยป More Articles for AAP

Headlines

Articles On GuruFocus.com
Genuine Parts Company (GPC) Dividend Stock Analysis Apr 26 2013 
Hedge Funds Love Advance Auto, Starbucks and More Mar 19 2013 
Advance Auto Parts Inc: Fundamental Stock Research Analysis Jan 14 2013 
How Richard Blum Had the Best-Performing Picks on GuruFocus in the Past Year Dec 13 2012 
Genuine Parts Company Dividend Stock Analysis Oct 25 2012 
Sequoia Fund Investor Day Notes Aug 31 2012 
RS Investments Comments on Advance Auto Parts Jul 27 2012 
RS Investments Value Fund Second-Quarter Commentary Jul 27 2012 
Genuine Parts Company (GPC) Dividend Stock Analysis Jul 27 2012 
RS Investments Comments on AAP Jul 27 2012 

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