Fact based stock research
Advance Auto Parts (NYSE:AAP)
US00751Y1064
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Advance Auto Parts stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Advance Auto Parts (Automotive Retail, USA) shares have much better financial characteristics than comparable stocks. Shares of Advance Auto Parts are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives), are safely financed (Safety Rank of 80, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Advance Auto Parts's financial characteristics. As the company Advance Auto Parts's key financial metrics exhibit good value (Obermatt Value Rank of 79) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 80), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 79% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
Latest Obermatt Ranks
Log in or sign up to see the new 360° View and Sentiment ranks.
360° Viewnew| Country | USA |
| Industry | Automotive Retail |
| Index | Dividends USA, S&P US Luxury, S&P 500 |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Advance Auto Parts
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
49 |
|
84 |
|
79 |
|
| GROWTH | ||||||||
| GROWTH | 26 |
|
23 |
|
23 |
|
39 |
|
| SAFETY | ||||||||
| SAFETY | 38 |
|
70 |
|
84 |
|
80 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
87 |
|
38 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
61 |
|
66 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Advance Auto Parts (Automotive Retail, USA) shares have much better financial characteristics than comparable stocks. Shares of Advance Auto Parts are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives), are safely financed (Safety Rank of 80, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Advance Auto Parts's financial characteristics. As the company Advance Auto Parts's key financial metrics exhibit good value (Obermatt Value Rank of 79) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 80), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 79% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 38 |
|
49 |
|
84 |
|
79 |
|
| GROWTH | ||||||||
| GROWTH | 26 |
|
23 |
|
23 |
|
39 |
|
| SAFETY | ||||||||
| SAFETY | 38 |
|
70 |
|
84 |
|
80 |
|
| COMBINED | ||||||||
| COMBINED | 21 |
|
51 |
|
83 |
|
85 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2024, Advance Auto Parts shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Advance Auto Parts. Price-to-Sales (P/S) is 64 which means that the stock price compared with what market professionals expect for future sales is lower than for 64% of comparable companies, indicating a good value for Advance Auto Parts's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 69. Finally, compared with other companies in the same industry, dividend yields of Advance Auto Parts are expected to be higher than for 84% of all competitors (a Dividend Yield rank of 84). The only low rank is for expected profits with a Price-to-Profit Rank of 18, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on Advance Auto Parts's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 35 |
|
28 |
|
61 |
|
64 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 60 |
|
33 |
|
46 |
|
18 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 14 |
|
34 |
|
70 |
|
69 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 49 |
|
92 |
|
76 |
|
84 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 38 |
|
49 |
|
84 |
|
79 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Advance Auto Parts shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Advance Auto Parts. Profit Growth, with a rank of 62 (better than 62% of its competitors), and Capital Growth, with a rank of 100, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 1, which means that, currently, professionals expect the company to grow less than 99% of its competitors, and Stock Returns are at a rank of 25. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 13 |
|
23 |
|
39 |
|
1 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 46 |
|
25 |
|
19 |
|
62 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
24 |
|
92 |
|
100 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 81 |
|
75 |
|
7 |
|
25 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 26 |
|
23 |
|
23 |
|
39 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 80 (better than 80% compared with alternatives) for 2024, the company Advance Auto Parts has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Advance Auto Parts is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Advance Auto Parts.Leverage is at 56, meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors.Refinancing is at a rank of 90, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 90% of its competitors. Liquidity is at 33, meaning that the company generates less profit to service its debt than 67% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 80 (better than 80% compared with alternatives), Advance Auto Parts has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Advance Auto Parts more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 41 |
|
66 |
|
63 |
|
56 |
|
| REFINANCING | ||||||||
| REFINANCING | 43 |
|
39 |
|
76 |
|
90 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 42 |
|
73 |
|
70 |
|
33 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 38 |
|
70 |
|
84 |
|
80 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
46 |
|
23 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
32 |
|
43 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
83 |
|
62 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
88 |
|
27 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
87 |
|
38 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Advance Auto Parts from December 19, 2024.
Obermatt Portfolio Performance
We’re so convinced about our free research, that we buy our stock tips.
See the performance of the Obermatt portfolio.