Advance Auto PartsBUE:AAP -0.08%52 Operating Margin % is 3.86% as of Mar. 2026, which is 38% below its 10-year median of 6.20. GuruFocus rates BUE:AAP with a GF Score™ of 52/100 and a GF Value™ of ARS5,781.60 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Advance Auto Parts ranks worse than 63.17% on this metric.
Advance Auto Parts (BUE:AAP) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Advance Auto Parts Operating Margin % Related Terms
Advance Auto Parts Operating Margin % Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BUE:AAP vs DORM, ATMU, DAN: Operating Margin % Comparison
For the Auto Parts subindustry, Advance Auto Parts's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advance Auto Parts Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Advance Auto Parts's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Advance Auto Parts (BUE:AAP) has a Operating Margin % of 3.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Advance Auto Parts and its competitors. This is 38% below median its historical median of 6.20. According to the industry distribution chart, Advance Auto Parts ranks #837 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 63.2%.
Is Advance Auto Parts' Operating Margin % too high?
Advance Auto Parts' current Operating Margin % of 3.86% is 38% below median its 10-year median of 6.20. The Vehicles & Parts industry median Operating Margin % is 4.86. Advance Auto Parts' value of 3.86% is 20.6% below this industry median. Based on the distribution chart, Advance Auto Parts ranks #837 out of 1325 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Advance Auto Parts has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' Operating Margin % compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #837 out of 1325 companies for Operating Margin %. This places Advance Auto Parts in the lower half of its industry. The industry median Operating Margin % is 4.86. Advance Auto Parts' value of 3.86% is 20.6% below this benchmark. While the company's 10-year median is 6.20 vs. the industry median of 4.86, Advance Auto Parts has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current Operating Margin % of 3.86% is 20.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current Operating Margin % is 3.86%, which is 38% below median its own 10-year median of 6.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (BUE:AAP) is currently considered Fairly Valued. The stock's GF Value™ is ARS5,781.60, compared to a current price of ARS6,080.00 — trading 5.2% above its estimated fair value. The current Operating Margin % is 3.86%, which is 38% below median its 10-year median of 6.20 and 20.6% below the Vehicles & Parts industry median of 4.86. Advance Auto Parts' overall GF Score™ is 52/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Advance Auto Parts (BUE:AAP), the current Operating Margin % is 3.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advance Auto Parts (BUE:AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued.
The current stock price of ARS6,080.00 is trading 5.2% above its estimated GF Value™ of ARS5,781.60.
GuruFocus considers Advance Auto Parts to be Fairly Valued.
Key valuation signals for BUE:AAP:
Operating Margin %: 3.86% (38% below median its 10-year median of 6.20)
GF Value™: ARS5,781.60 vs. price of ARS6,080.00 (5.2% above fair value)
Industry Position: 20.6% below the Vehicles & Parts median (#837 of 1325)
No single metric tells the full story. See the BUE:AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
52GF Score
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