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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 0.05
AAP's Cash to Debt is ranked lower than
56% of the 1281 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.75 vs. AAP: 0.05 )
AAP' s 10-Year Cash to Debt Range
Min: 0.02   Max: No Debt
Current: 0.05

Equity to Asset 0.24
AAP's Equity to Asset is ranked lower than
51% of the 1266 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.48 vs. AAP: 0.24 )
AAP' s 10-Year Equity to Asset Range
Min: 0.15   Max: 0.42
Current: 0.24

0.15
0.42
Interest Coverage 18.03
AAP's Interest Coverage is ranked higher than
65% of the 882 Companies
in the Global Specialty Retail industry.

( Industry Median: 32.14 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: 2.91
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 (%) 8.83
AAP's Operating margin (%) is ranked higher than
85% of the 1281 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.03 vs. AAP: 8.83 )
AAP' s 10-Year Operating margin (%) Range
Min: 1.39   Max: 10.77
Current: 8.83

1.39
10.77
Net-margin (%) 5.09
AAP's Net-margin (%) is ranked higher than
82% of the 1281 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.32 vs. AAP: 5.09 )
AAP' s 10-Year Net-margin (%) Range
Min: -1.26   Max: 6.4
Current: 5.09

-1.26
6.4
ROE (%) 27.33
AAP's ROE (%) is ranked higher than
95% of the 1256 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.93 vs. AAP: 27.33 )
AAP' s 10-Year ROE (%) Range
Min: -17.28   Max: 41.83
Current: 27.33

-17.28
41.83
ROA (%) 6.67
AAP's ROA (%) is ranked higher than
84% of the 1285 Companies
in the Global Specialty Retail industry.

( Industry Median: 4.14 vs. AAP: 6.67 )
AAP' s 10-Year ROA (%) Range
Min: -1.94   Max: 11.26
Current: 6.67

-1.94
11.26
ROC (Joel Greenblatt) (%) 40.11
AAP's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 1281 Companies
in the Global Specialty Retail industry.

( Industry Median: 16.92 vs. AAP: 40.11 )
AAP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 9.24   Max: 50.74
Current: 40.11

9.24
50.74
Revenue Growth (%) 9.20
AAP's Revenue Growth (%) is ranked higher than
82% of the 1115 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.60 vs. AAP: 9.20 )
AAP' s 10-Year Revenue Growth (%) Range
Min: 5   Max: 14
Current: 9.2

5
14
EBITDA Growth (%) 11.40
AAP's EBITDA Growth (%) is ranked higher than
82% of the 922 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.50 vs. AAP: 11.40 )
AAP' s 10-Year EBITDA Growth (%) Range
Min: 6.8   Max: 105.6
Current: 11.4

6.8
105.6
EPS Growth (%) 10.40
AAP's EPS Growth (%) is ranked higher than
77% of the 861 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.90 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

Q4 2013

AAP Guru Trades in Q4 2013

Eric Mindich 109,375 sh (New)
Charles Brandes 2,402 sh (New)
Steven Cohen 197,204 sh (+4325.58%)
Jeremy Grantham 34,057 sh (+82%)
Mario Gabelli 10,000 sh (unchged)
Paul Singer Sold Out
Jim Simons 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

Paul Tudor Jones 2,000 sh (New)
John Keeley 22,880 sh (New)
Pioneer Investments 52,967 sh (New)
RS Investment Management 61,995 sh (New)
Louis Moore Bacon 89,775 sh (New)
Jim Simons 137,082 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)
Paul Tudor Jones Sold Out
Louis Moore Bacon Sold Out
Ray Dalio Sold Out
Jeremy Grantham 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
Q3 2014

AAP Guru Trades in Q3 2014

Paul Tudor Jones 2,306 sh (New)
Caxton Associates 20,000 sh (New)
Jim Simons 219,950 sh (+24.51%)
Chuck Royce 16,301 sh (unchged)
Kyle Bass Sold Out
Joel Greenblatt Sold Out
Ruane Cunniff 1,673,207 sh (-0.17%)
Pioneer Investments 119,703 sh (-2.88%)
Private Capital 156,792 sh (-3.44%)
Charles Brandes 1,929 sh (-4.93%)
John Keeley 21,190 sh (-6.65%)
RS Investment Management 65,565 sh (-11.08%)
Mario Gabelli 6,000 sh (-33.33%)
Larry Robbins 564,321 sh (-42.15%)
Steven Cohen 11,600 sh (-97.37%)
» 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 2014-09-30 Sold Out $121.06 - $138.3 $ 145.7111%0
Mario Gabelli 2014-09-30 Reduce -33.33%$121.06 - $138.3 $ 145.7111%6000
Joel Greenblatt 2014-06-30 Reduce -57.66%0.01%$116.25 - $133.48 $ 145.7118%2252
Ray Dalio 2014-06-30 Sold Out $116.25 - $133.48 $ 145.7118%0
John Keeley 2014-03-31 New Buy0.05%$109.63 - $127.92 $ 145.7121%22880
Joel Greenblatt 2014-03-31 Add 136.19%0.01%$109.63 - $127.92 $ 145.7121%5319
Ray Dalio 2014-03-31 Reduce -79.72%0.01%$109.63 - $127.92 $ 145.7121%1602
Charles Brandes 2014-03-31 Reduce -20.65%$109.63 - $127.92 $ 145.7121%1906
Ruane Cunniff 2013-12-31 Reduce -72.81%2.18%$80.48 - $110.28 $ 145.7147%1682394
Private Capital 2013-12-31 Reduce -42.31%0.93%$80.48 - $110.28 $ 145.7147%169418
Joel Greenblatt 2013-12-31 Reduce -86.56%0.04%$80.48 - $110.28 $ 145.7147%2252
Charles Brandes 2013-12-31 New Buy$80.48 - $110.28 $ 145.7147%2402
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe 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) 23.40
AAP's P/E(ttm) is ranked higher than
73% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 25.00 vs. AAP: 23.40 )
AAP' s 10-Year P/E(ttm) Range
Min: 10.07   Max: 25.45
Current: 23.4

10.07
25.45
P/B 5.52
AAP's P/B is ranked higher than
54% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.31 vs. AAP: 5.52 )
AAP' s 10-Year P/B Range
Min: 2.34   Max: 7.35
Current: 5.52

2.34
7.35
P/S 1.19
AAP's P/S is ranked higher than
62% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.87 vs. AAP: 1.19 )
AAP' s 10-Year P/S Range
Min: 0.5   Max: 1.45
Current: 1.19

0.5
1.45
PFCF 22.38
AAP's PFCF is ranked higher than
82% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 82.58 vs. AAP: 22.38 )
AAP' s 10-Year PFCF Range
Min: 6.33   Max: 118.97
Current: 22.38

6.33
118.97
EV-to-EBIT 15.42
AAP's EV-to-EBIT is ranked higher than
75% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 17.88 vs. AAP: 15.42 )
AAP' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 15.9
Current: 15.42

6.8
15.9
PEG 1.42
AAP's PEG is ranked higher than
89% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 1.42 )
AAP' s 10-Year PEG Range
Min: 0.52   Max: 2.14
Current: 1.42

0.52
2.14
Shiller P/E 29.53
AAP's Shiller P/E is ranked higher than
79% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 53.43 vs. AAP: 29.53 )
AAP' s 10-Year Shiller P/E Range
Min: 12.22   Max: 29.56
Current: 29.53

12.22
29.56
Current Ratio 1.26
AAP's Current Ratio is ranked higher than
62% of the 1279 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.56 vs. AAP: 1.26 )
AAP' s 10-Year Current Ratio Range
Min: 1.05   Max: 1.64
Current: 1.26

1.05
1.64
Quick Ratio 0.22
AAP's Quick Ratio is ranked lower than
55% of the 1279 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.85 vs. AAP: 0.22 )
AAP' s 10-Year Quick Ratio Range
Min: 0.1   Max: 0.52
Current: 0.22

0.1
0.52

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.20
AAP's Dividend Yield is ranked lower than
95% of the 876 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.81 vs. AAP: 0.20 )
AAP' s 10-Year Dividend Yield Range
Min: 0.14   Max: 0.93
Current: 0.2

0.14
0.93
Dividend Payout 0.04
AAP's Dividend Payout is ranked higher than
99% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.81 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
92% of the 898 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.18 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 858 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 64.76
AAP's Price/Tangible Book is ranked higher than
53% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.42 vs. AAP: 64.76 )
AAP' s 10-Year Price/Tangible Book Range
Min: 3.04   Max: 293.3
Current: 64.76

3.04
293.3
Price/DCF (Projected) 1.29
AAP's Price/DCF (Projected) is ranked higher than
83% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.55 vs. AAP: 1.29 )
AAP' s 10-Year Price/DCF (Projected) Range
Min: 0.76   Max: 2.34
Current: 1.29

0.76
2.34
Price/Median PS Value 1.36
AAP's Price/Median PS Value is ranked higher than
62% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.11 vs. AAP: 1.36 )
AAP' s 10-Year Price/Median PS Value Range
Min: 0.59   Max: 1.44
Current: 1.36

0.59
1.44
Price/Peter Lynch Fair Value 1.46
AAP's Price/Peter Lynch Fair Value is ranked higher than
91% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 1.46 )
AAP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 1.78
Current: 1.46

0.6
1.78
Price/Graham Number 8.16
AAP's Price/Graham Number is ranked higher than
63% of the 1357 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.62 vs. AAP: 8.16 )
AAP' s 10-Year Price/Graham Number Range
Min: 1.37   Max: 16.97
Current: 8.16

1.37
16.97
Earnings Yield (Greenblatt) 6.50
AAP's Earnings Yield (Greenblatt) is ranked higher than
73% of the 1265 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.20 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) 19.75
AAP's Forward Rate of Return (Yacktman) is ranked higher than
89% of the 1036 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.40 vs. AAP: 19.75 )
AAP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.6   Max: 34.7
Current: 19.75

2.6
34.7

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 founded in 1929 as Advance Stores Company, Incorporated and operated as a retailer of general merchandise until the 1980s. The Company is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. Its stores carry an extensive product line for cars, vans, sport utility vehicles and light trucks. The Company operated in two reportable segments: Advance Auto Parts, or AAP, and Autopart International, or AI. The AAP segment is comprised of its store operations, which operate under the trade names "Advance Auto Parts" and "Advance Discount Auto Parts". The AI segment consists solely of the operations of Autopart International, Inc. which operates under the "Autopart International" trade name. It operated 3,832 AAP stores throughout 39 states in the Northeastern, Southeastern and Midwestern (inclusive of South Central) 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 private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars and light trucks. The primary categories of products they offer in its stores include: Parts, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps and windshield wiper blades; Accessories, including air fresheners, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; Chemicals, including antifreeze, brake and power steering fluid, freon, fuel additives, windshield washer fluid and car washes and waxes; Oil, transmission fluid and other automotive petroleum products; and Other miscellaneous offerings, including certain eServices. AI's business primarily serves the Commercial market, with an emphasis on parts for imported cars, from its store locations located primarily throughout the Northeastern, Mid-Atlantic and Southeastern regions of the United States. In addition, its North American Sales Division serves warehouse distributors and jobbers throughout North America. primary competitors are (i) 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 collection, transportation and recycling of automotive lead-acid batteries, used
» More Articles for AAP

Headlines

Articles On GuruFocus.com
Looking Beyond Advance Auto Parts’ Numbers Nov 25 2014 
This Auto Part Retailer Should Continue To Perform Nov 13 2014 
AutoZone Should Be Avoided Nov 11 2014 
Weekly 52-Week Highs Highlight: V, DPS, AAP, TXT Nov 02 2014 
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 
Advance Auto Parts: A Decade of High Return on Equity Sep 04 2014 
Which of These Aftermarket Retailers Is a Good Buy? Jul 30 2014 
These Aftermarket Retailers Are Solid Long-Term Prospects Jul 28 2014 


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