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GuruFocus Financial Strength Rank measures how strong a company’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 0.04
AAP's Cash to Debt is ranked lower than
57% of the 1168 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.97 vs. AAP: 0.04 )
AAP' s 10-Year Cash to Debt Range
Min: 0.02   Max: No Debt
Current: 0.04

Equity to Asset 0.23
AAP's Equity to Asset is ranked lower than
53% of the 1156 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.48 vs. AAP: 0.23 )
AAP' s 10-Year Equity to Asset Range
Min: 0.15   Max: 0.42
Current: 0.23

0.15
0.42
Interest Coverage 18.03
AAP's Interest Coverage is ranked higher than
63% of the 816 Companies
in the Global Specialty Retail industry.

( Industry Median: 33.71 vs. AAP: 18.03 )
AAP' s 10-Year Interest Coverage Range
Min: 0.45   Max: 21.78
Current: 18.03

0.45
21.78
F-Score: 4
Z-Score: 2.70
M-Score: -0.02
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’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.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

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 (%) 9.19
AAP's Operating margin (%) is ranked higher than
85% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.22 vs. AAP: 9.19 )
AAP' s 10-Year Operating margin (%) Range
Min: 1.39   Max: 10.77
Current: 9.19

1.39
10.77
Net-margin (%) 5.34
AAP's Net-margin (%) is ranked higher than
82% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.43 vs. AAP: 5.34 )
AAP' s 10-Year Net-margin (%) Range
Min: -1.26   Max: 6.4
Current: 5.34

-1.26
6.4
ROE (%) 28.10
AAP's ROE (%) is ranked higher than
95% of the 1152 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.97 vs. AAP: 28.10 )
AAP' s 10-Year ROE (%) Range
Min: -17.28   Max: 41.83
Current: 28.1

-17.28
41.83
ROA (%) 7.05
AAP's ROA (%) is ranked higher than
84% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 4.22 vs. AAP: 7.05 )
AAP' s 10-Year ROA (%) Range
Min: -1.94   Max: 11.26
Current: 7.05

-1.94
11.26
ROC (Joel Greenblatt) (%) 42.07
AAP's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 1169 Companies
in the Global Specialty Retail industry.

( Industry Median: 17.70 vs. AAP: 42.07 )
AAP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 8.76   Max: 50.74
Current: 42.07

8.76
50.74
Revenue Growth (%) 9.20
AAP's Revenue Growth (%) is ranked higher than
82% of the 1031 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.50 vs. AAP: 9.20 )
AAP' s 10-Year Revenue Growth (%) Range
Min: 5.3   Max: 14
Current: 9.2

5.3
14
EBITDA Growth (%) 11.40
AAP's EBITDA Growth (%) is ranked higher than
82% of the 851 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.10 vs. AAP: 11.40 )
AAP' s 10-Year EBITDA Growth (%) Range
Min: 6.8   Max: 100.8
Current: 11.4

6.8
100.8
EPS Growth (%) 10.40
AAP's EPS Growth (%) is ranked higher than
77% of the 823 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.20 vs. AAP: 10.40 )
AAP' s 10-Year EPS Growth (%) Range
Min: 5.5   Max: 133.7
Current: 10.4

5.5
133.7
» AAP's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

AAP Guru Trades in Q3 2013

Larry Robbins 2,717,938 sh (New)
Joel Greenblatt 16,753 sh (New)
Paul Singer 200,000 sh (New)
Ray Dalio 8,300 sh (New)
Chuck Royce 21,901 sh (+45.22%)
Jim Simons 448,350 sh (+26.24%)
Jeremy Grantham 18,713 sh (+23.11%)
Private Capital 293,693 sh (+8.09%)
Caxton Associates 200,000 sh (unchged)
Richard Perry Sold Out
Richard Blum Sold Out
Ruane Cunniff 6,188,254 sh (-1%)
Mario Gabelli 10,000 sh (-23.08%)
Steven Cohen 4,456 sh (-96.83%)
» More
Q4 2013

AAP Guru Trades in Q4 2013

Charles Brandes 2,402 sh (New)
Eric Mindich 109,375 sh (New)
Steven Cohen 197,204 sh (+4325.58%)
Jeremy Grantham 34,057 sh (+82%)
Mario Gabelli 10,000 sh (unchged)
Jim Simons Sold Out
Paul Singer Sold Out
Ray Dalio 7,900 sh (-4.82%)
Larry Robbins 2,317,353 sh (-14.74%)
Chuck Royce 14,601 sh (-33.33%)
Private Capital 169,418 sh (-42.31%)
Ruane Cunniff 1,682,394 sh (-72.81%)
Joel Greenblatt 2,252 sh (-86.56%)
» More
Q1 2014

AAP Guru Trades in Q1 2014

Pioneer Investments 52,967 sh (New)
Jim Simons 137,082 sh (New)
Paul Tudor Jones 2,000 sh (New)
RS Investment Management 61,995 sh (New)
John Keeley 22,880 sh (New)
Louis Moore Bacon 89,775 sh (New)
Joel Greenblatt 5,319 sh (+136.19%)
Steven Cohen 378,484 sh (+91.93%)
Chuck Royce 14,601 sh (unchged)
Eric Mindich Sold Out
Ruane Cunniff 1,681,084 sh (-0.08%)
Private Capital 168,018 sh (-0.83%)
Mario Gabelli 9,000 sh (-10%)
Charles Brandes 1,906 sh (-20.65%)
Jeremy Grantham 18,900 sh (-44.5%)
Larry Robbins 1,073,303 sh (-53.68%)
Ray Dalio 1,602 sh (-79.72%)
» More
Q2 2014

AAP Guru Trades in Q2 2014

Kyle Bass 22,600 sh (New)
Pioneer Investments 123,256 sh (+132.7%)
Jim Simons 176,650 sh (+28.86%)
RS Investment Management 73,735 sh (+18.94%)
Chuck Royce 16,301 sh (+11.64%)
Charles Brandes 2,029 sh (+6.45%)
Mario Gabelli 9,000 sh (unchged)
Steven Cohen 441,400 sh (unchged)
Jeremy Grantham Sold Out
Ray Dalio Sold Out
Louis Moore Bacon Sold Out
Paul Tudor Jones Sold Out
Ruane Cunniff 1,675,975 sh (-0.3%)
John Keeley 22,700 sh (-0.79%)
Private Capital 162,383 sh (-3.35%)
Larry Robbins 975,460 sh (-9.12%)
Joel Greenblatt 2,252 sh (-57.66%)
» More
» Details

Insider Trades

Latest Guru Trades with AAP

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Reduce -57.66%0.01%$116.25 - $133.48 $ 135.7910%2252
Ray Dalio 2014-06-30 Sold Out $116.25 - $133.48 $ 135.7910%0
John Keeley 2014-03-31 New Buy0.05%$109.63 - $127.92 $ 135.7912%22880
Joel Greenblatt 2014-03-31 Add 136.19%0.01%$109.63 - $127.92 $ 135.7912%5319
Ray Dalio 2014-03-31 Reduce -79.72%0.01%$109.63 - $127.92 $ 135.7912%1602
Charles Brandes 2014-03-31 Reduce -20.65%$109.63 - $127.92 $ 135.7912%1906
Ruane Cunniff 2013-12-31 Reduce -72.81%2.18%$80.48 - $110.28 $ 135.7937%1682394
Private Capital 2013-12-31 Reduce -42.31%0.93%$80.48 - $110.28 $ 135.7937%169418
Joel Greenblatt 2013-12-31 Reduce -86.56%0.04%$80.48 - $110.28 $ 135.7937%2252
Charles Brandes 2013-12-31 New Buy$80.48 - $110.28 $ 135.7937%2402
Richard Perry 2013-09-30 Sold Out 3.4%$79.12 - $84.49 $ 135.7966%0
Private Capital 2013-09-30 Add 8.09%0.16%$79.12 - $84.49 $ 135.7966%293693
Joel Greenblatt 2013-09-30 New Buy0.05%$79.12 - $84.49 $ 135.7966%16753
Ray Dalio 2013-09-30 New Buy0.01%$79.12 - $84.49 $ 135.7966%8300
Mario Gabelli 2013-09-30 Reduce -23.08%$79.12 - $84.49 $ 135.7966%10000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Advance Auto Parts Inc

Sequoia Fund Comments on Advance Auto Parts - Mar 07, 2014

We sold a large portion of our holding in Advance Auto Parts shortly after the company announced a deal to buy General Parts International, parent of Carquest stores, in the fall. The stock price understandably soared on the news as Advance bought GPI on favorable terms and should be able to harvest significant synergies out of the deal, thus accelerating its earnings growth. However, we’d been concerned about poor execution in legacy Advance stores for some time and felt it prudent to reduce our holding as the stock price soared. If the company integrates GPI well and improves performance in its own stores, our sale may turn out to be a mistake.





Source: Sequoia Fund 2013 Annual Shareholder Letter



Check out Sequoia Fund latest stock trades

Top Ranked Articles about Advance Auto Parts Inc

Sequoia Fund Comments on Valeant Pharmaceuticals, Advance Auto Parts, Berkshire Hathaway, and Precision Castparts
Sequoia benefited greatly from two transformative acquisitions announced in 2013: Valeant’s purchase of Bausch & Lomb and Advance Auto Parts’ purchase of General Parts International. Both deals were game changers which will significantly increase these two companies’ earnings beginning in 2014. While we’ve long been partial to companies that can grow organically, Sequoia’s returns have been boosted considerably by companies that may have limited organic growth opportunities but have done smart serial acquisitions, such as Valeant Pharmaceuticals and Berkshire Hathaway. Precision Castparts has been another serial acquirer that has created great value for shareholders. Read more...
Sequoia Fund Comments on Advance Auto Parts
We sold a large portion of our holding in Advance Auto Parts shortly after the company announced a deal to buy General Parts International, parent of Carquest stores, in the fall. The stock price understandably soared on the news as Advance bought GPI on favorable terms and should be able to harvest significant synergies out of the deal, thus accelerating its earnings growth. However, we’d been concerned about poor execution in legacy Advance stores for some time and felt it prudent to reduce our holding as the stock price soared. If the company integrates GPI well and improves performance in its own stores, our sale may turn out to be a mistake. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.70
AAP's P/E(ttm) is ranked higher than
70% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 21.70 vs. AAP: 22.70 )
AAP' s 10-Year P/E(ttm) Range
Min: 10.07   Max: 25.45
Current: 22.7

10.07
25.45
P/B 5.46
AAP's P/B is ranked higher than
51% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.97 vs. AAP: 5.46 )
AAP' s 10-Year P/B Range
Min: 2.34   Max: 7.35
Current: 5.46

2.34
7.35
P/S 1.21
AAP's P/S is ranked higher than
60% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.79 vs. AAP: 1.21 )
AAP' s 10-Year P/S Range
Min: 0.5   Max: 1.45
Current: 1.21

0.5
1.45
PFCF 27.21
AAP's PFCF is ranked higher than
79% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 54.83 vs. AAP: 27.21 )
AAP' s 10-Year PFCF Range
Min: 6.33   Max: 122.81
Current: 27.21

6.33
122.81
EV-to-EBIT 15.45
AAP's EV-to-EBIT is ranked higher than
72% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 16.23 vs. AAP: 15.45 )
AAP' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 15.9
Current: 15.45

6.8
15.9
PEG 1.37
AAP's PEG is ranked higher than
87% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 1.37 )
AAP' s 10-Year PEG Range
Min: 0.53   Max: 2.14
Current: 1.37

0.53
2.14
Shiller P/E 28.40
AAP's Shiller P/E is ranked higher than
78% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 39.36 vs. AAP: 28.40 )
AAP' s 10-Year Shiller P/E Range
Min: 12.22   Max: 29.75
Current: 28.4

12.22
29.75
Current Ratio 1.25
AAP's Current Ratio is ranked higher than
61% of the 1166 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.55 vs. AAP: 1.25 )
AAP' s 10-Year Current Ratio Range
Min: 1.05   Max: 1.64
Current: 1.25

1.05
1.64
Quick Ratio 0.21
AAP's Quick Ratio is ranked lower than
57% of the 1166 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.84 vs. AAP: 0.21 )
AAP' s 10-Year Quick Ratio Range
Min: 0.1   Max: 0.52
Current: 0.21

0.1
0.52

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.18
AAP's Dividend Yield is ranked lower than
96% of the 811 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.05 vs. AAP: 0.18 )
AAP' s 10-Year Dividend Yield Range
Min: 0.14   Max: 0.93
Current: 0.18

0.14
0.93
Dividend Payout 0.04
AAP's Dividend Payout is ranked higher than
99% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.75 vs. AAP: 0.04 )
AAP' s 10-Year Dividend Payout Range
Min: 0.03   Max: 0.23
Current: 0.04

0.03
0.23
Yield on cost (5-Year) 0.20
AAP's Yield on cost (5-Year) is ranked lower than
94% of the 834 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.45 vs. AAP: 0.20 )
AAP' s 10-Year Yield on cost (5-Year) Range
Min: 0.14   Max: 0.93
Current: 0.2

0.14
0.93
Share Buyback Rate 5.60
AAP's Share Buyback Rate is ranked higher than
95% of the 815 Companies
in the Global Specialty Retail industry.

( Industry Median: -0.40 vs. AAP: 5.60 )
AAP' s 10-Year Share Buyback Rate Range
Min: 8   Max: -16.2
Current: 5.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 295.19
AAP's Price/Tangible Book is ranked lower than
51% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.92 vs. AAP: 295.19 )
AAP' s 10-Year Price/Tangible Book Range
Min: 3.04   Max: 293.3
Current: 295.19

3.04
293.3
Price/DCF (Projected) 1.28
AAP's Price/DCF (Projected) is ranked higher than
80% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.17 vs. AAP: 1.28 )
AAP' s 10-Year Price/DCF (Projected) Range
Min: 0.76   Max: 2.3
Current: 1.28

0.76
2.3
Price/Median PS Value 1.39
AAP's Price/Median PS Value is ranked higher than
57% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.03 vs. AAP: 1.39 )
AAP' s 10-Year Price/Median PS Value Range
Min: 0.61   Max: 1.44
Current: 1.39

0.61
1.44
Price/Peter Lynch Fair Value 1.35
AAP's Price/Peter Lynch Fair Value is ranked higher than
88% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 1.35 )
AAP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 1.78
Current: 1.35

0.6
1.78
Price/Graham Number 17.08
AAP's Price/Graham Number is ranked higher than
60% of the 1210 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.31 vs. AAP: 17.08 )
AAP' s 10-Year Price/Graham Number Range
Min: 1.37   Max: 16.97
Current: 17.08

1.37
16.97
Earnings Yield (Greenblatt) 6.50
AAP's Earnings Yield (Greenblatt) is ranked higher than
66% of the 1071 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.50 vs. AAP: 6.50 )
AAP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.3   Max: 14.7
Current: 6.5

6.3
14.7
Forward Rate of Return (Yacktman) 20.00
AAP's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 962 Companies
in the Global Specialty Retail industry.

( Industry Median: 9.24 vs. AAP: 20.00 )
AAP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.5   Max: 30.1
Current: 20

2.5
30.1

Business Description

Industry: Retail - Apparel & Specialty » Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO » details
Traded in other countries:AWN.Germany
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 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 29, 2012, it operated 3,576 AAP stores throughout 39 states in the Northeastern, Mid-Atlantic, Southeastern and Midwestern regions of the United States, Puerto Rico and the Virgin Islands. 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," "Autopart International," "DriverSide," "MotoLogic," 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.
» More Articles for AAP

Headlines

Articles On GuruFocus.com
Genuine Parts Company (GPC) Dividend Stock Analysis Oct 08 2014 
This Auto Parts Retailer Should Be Strictly Avoided Sep 22 2014 
Reasons to Invest in AutoZone Sep 04 2014 
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Which of These Aftermarket Retailers Is a Good Buy? Jul 30 2014 
These Aftermarket Retailers Are Solid Long-Term Prospects Jul 28 2014 
Here's Why AutoZone Does Not Look Like a Good Investment Jul 11 2014 
This Is One of the Best After-Market Retailers to Invest In Jul 08 2014 
Advance Auto Is Advancing To a New Future Jun 27 2014 
O'Reilly Looks Like a Solid Pick in Aftermarket Retail Jun 19 2014 


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