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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
60% of the 1126 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.13 vs. AAP: 0.04 )
AAP' s 10-Year Cash to Debt Range
Min: 0.02   Max: No Debt
Current: 0.04

Equity to Asset 0.21
AAP's Equity to Asset is ranked lower than
56% of the 1117 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.50 vs. AAP: 0.21 )
AAP' s 10-Year Equity to Asset Range
Min: 0.15   Max: 0.42
Current: 0.21

0.15
0.42
Interest Coverage 18.03
AAP's Interest Coverage is ranked higher than
62% of the 736 Companies
in the Global Specialty Retail industry.

( Industry Median: 35.22 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: 6
Z-Score: 2.44
M-Score: -0.55
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 (%) 10.17
AAP's Operating margin (%) is ranked higher than
86% of the 1081 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.46 vs. AAP: 10.17 )
AAP' s 10-Year Operating margin (%) Range
Min: 1.39   Max: 10.77
Current: 10.17

1.39
10.77
Net-margin (%) 6.03
AAP's Net-margin (%) is ranked higher than
82% of the 1081 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.54 vs. AAP: 6.03 )
AAP' s 10-Year Net-margin (%) Range
Min: -1.26   Max: 6.4
Current: 6.03

-1.26
6.4
ROE (%) 25.84
AAP's ROE (%) is ranked higher than
95% of the 1063 Companies
in the Global Specialty Retail industry.

( Industry Median: 9.36 vs. AAP: 25.84 )
AAP' s 10-Year ROE (%) Range
Min: -18.91   Max: 46.55
Current: 25.84

-18.91
46.55
ROA (%) 7.04
AAP's ROA (%) is ranked higher than
83% of the 1079 Companies
in the Global Specialty Retail industry.

( Industry Median: 4.38 vs. AAP: 7.04 )
AAP' s 10-Year ROA (%) Range
Min: -1.88   Max: 10.8
Current: 7.04

-1.88
10.8
ROC (Joel Greenblatt) (%) 47.27
AAP's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 1078 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.96 vs. AAP: 47.27 )
AAP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 7.08   Max: 52.25
Current: 47.27

7.08
52.25
Revenue Growth (%) 9.20
AAP's Revenue Growth (%) is ranked higher than
81% of the 982 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.30 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
80% of the 806 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
75% of the 775 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

Q2 2013

AAP Guru Trades in Q2 2013

Steven Cohen 140,580 sh (+2334.29%)
Richard Perry 1,631,688 sh (+104.51%)
Private Capital 271,720 sh (+34.43%)
Chuck Royce 15,081 sh (+14.59%)
Mario Gabelli 13,000 sh (unchged)
Louis Moore Bacon Sold Out
Ray Dalio Sold Out
Joel Greenblatt Sold Out
Jeremy Grantham 15,200 sh (-3.46%)
Ruane Cunniff 6,250,587 sh (-13.54%)
Richard Blum 239,741 sh (-26.21%)
Jim Simons 355,150 sh (-44.05%)
» More
Q3 2013

AAP Guru Trades in Q3 2013

Paul Singer 200,000 sh (New)
Ray Dalio 8,300 sh (New)
Larry Robbins 2,717,938 sh (New)
Joel Greenblatt 16,753 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 Blum Sold Out
Richard Perry 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

Louis Moore Bacon 89,775 sh (New)
John Keeley 22,880 sh (New)
RS Investment Management 61,995 sh (New)
Paul Tudor Jones 2,000 sh (New)
Jim Simons 137,082 sh (New)
Pioneer Investments 52,967 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
» Details

Insider Trades

Latest Guru Trades with AAP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2014-03-31 New Buy0.05%$109.63 - $127.92 $ 125.554%22880
Joel Greenblatt 2014-03-31 Add 136.19%0.01%$109.63 - $127.92 $ 125.554%5319
Ray Dalio 2014-03-31 Reduce -79.72%0.01%$109.63 - $127.92 $ 125.554%1602
Charles Brandes 2014-03-31 Reduce -20.65%$109.63 - $127.92 $ 125.554%1906
Ruane Cunniff 2013-12-31 Reduce -72.81%2.18%$80.48 - $110.28 $ 125.5526%1682394
Joel Greenblatt 2013-12-31 Reduce -86.56%0.04%$80.48 - $110.28 $ 125.5526%2252
Charles Brandes 2013-12-31 New Buy$80.48 - $110.28 $ 125.5526%2402
Richard Perry 2013-09-30 Sold Out 3.4%$79.12 - $84.49 $ 125.5554%0
Joel Greenblatt 2013-09-30 New Buy0.05%$79.12 - $84.49 $ 125.5554%16753
Ray Dalio 2013-09-30 New Buy0.01%$79.12 - $84.49 $ 125.5554%8300
Mario Gabelli 2013-09-30 Reduce -23.08%$79.12 - $84.49 $ 125.5554%10000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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...
Richard Perry's Top Second Quarter Portfolio Changes
During the second quarter Guru Richard Perry made noticeable increases in two companies as well as noticeable reductions in his holdings in three. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.10
AAP's P/E(ttm) is ranked higher than
68% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 22.10 vs. AAP: 22.10 )
AAP' s 10-Year P/E(ttm) Range
Min: 10.07   Max: 29.83
Current: 22.1

10.07
29.83
P/B 5.49
AAP's P/B is ranked lower than
52% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.90 vs. AAP: 5.49 )
AAP' s 10-Year P/B Range
Min: 2.34   Max: 7.35
Current: 5.49

2.34
7.35
P/S 1.24
AAP's P/S is ranked higher than
56% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.80 vs. AAP: 1.24 )
AAP' s 10-Year P/S Range
Min: 0.5   Max: 1.45
Current: 1.24

0.5
1.45
PFCF 30.85
AAP's PFCF is ranked higher than
72% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 36.66 vs. AAP: 30.85 )
AAP' s 10-Year PFCF Range
Min: 6.33   Max: 122.81
Current: 30.85

6.33
122.81
EV-to-EBIT 15.66
AAP's EV-to-EBIT is ranked higher than
70% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 16.27 vs. AAP: 15.66 )
AAP' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 16.7
Current: 15.66

6.8
16.7
PEG 1.34
AAP's PEG is ranked higher than
84% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.75 vs. AAP: 1.34 )
AAP' s 10-Year PEG Range
Min: 0.53   Max: 2.14
Current: 1.34

0.53
2.14
Shiller P/E 27.58
AAP's Shiller P/E is ranked higher than
81% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 27.58 )
AAP' s 10-Year Shiller P/E Range
Min: 12.22   Max: 29.66
Current: 27.58

12.22
29.66
Current Ratio 1.27
AAP's Current Ratio is ranked higher than
60% of the 1120 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.61 vs. AAP: 1.27 )
AAP' s 10-Year Current Ratio Range
Min: 1.05   Max: 1.64
Current: 1.27

1.05
1.64
Quick Ratio 0.20
AAP's Quick Ratio is ranked lower than
58% of the 1120 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.87 vs. AAP: 0.20 )
AAP' s 10-Year Quick Ratio Range
Min: 0.1   Max: 0.52
Current: 0.2

0.1
0.52

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.19
AAP's Dividend Yield is ranked lower than
95% of the 780 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.93 vs. AAP: 0.19 )
AAP' s 10-Year Dividend Yield Range
Min: 0.14   Max: 0.93
Current: 0.19

0.14
0.93
Dividend Payout 0.03
AAP's Dividend Payout is ranked higher than
100% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 0.03 )
AAP' s 10-Year Dividend Payout Range
Min: 0.03   Max: 0.23
Current: 0.03

0.03
0.23
Yield on cost (5-Year) 0.20
AAP's Yield on cost (5-Year) is ranked lower than
93% of the 799 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.22 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 782 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/DCF (Projected) 1.24
AAP's Price/DCF (Projected) is ranked higher than
85% of the 1170 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.19 vs. AAP: 1.24 )
AAP' s 10-Year Price/DCF (Projected) Range
Min: 0.76   Max: 2.3
Current: 1.24

0.76
2.3
Price/Median PS Value 1.42
AAP's Price/Median PS Value is ranked higher than
53% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.08 vs. AAP: 1.42 )
AAP' s 10-Year Price/Median PS Value Range
Min: 0.61   Max: 1.44
Current: 1.42

0.61
1.44
Price/Peter Lynch Fair Value 1.26
AAP's Price/Peter Lynch Fair Value is ranked higher than
89% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. AAP: 1.26 )
AAP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.6   Max: 1.78
Current: 1.26

0.6
1.78
Earnings Yield (Greenblatt) 6.40
AAP's Earnings Yield (Greenblatt) is ranked higher than
62% of the 1029 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.30 vs. AAP: 6.40 )
AAP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6   Max: 14.7
Current: 6.4

6
14.7
Forward Rate of Return (Yacktman) 20.79
AAP's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 839 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.99 vs. AAP: 20.79 )
AAP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.5   Max: 30.1
Current: 20.79

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
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 
Advance Auto Parts Should Make Your Portfolio Healthier Jun 18 2014 
Will AutoZone Be Able To Race Ahead? Jun 17 2014 
Why O'Reilly Is the Best Pick for Investors in Aftermarket Retail May 21 2014 
This Aftermarket Retailer Should Help You Earn More Dollars May 09 2014 
These Aftermarket Retailers Can Be Good For Your Portfolio Apr 30 2014 
3 Aftermarket Retailers to Consider Apr 19 2014 


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