# Advance Auto Parts Inc. (AAP) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Specialty Retail. Price $44.18, market value $2.7 billion.

## Valuation
- **P/E (trailing): 24.7×** (5-yr avg 52.2×, 3-yr avg 84.0×). Advance Auto Parts Inc. trades at 24.7× trailing earnings, well below its own five-year average of 52.2×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 11.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.10**. A PEG of 0.10 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.2×**. The shares trade at 1.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.5×**. Enterprise value is 7.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 5.4%** (5-yr avg -1.0%). Free cash flow equals 5.4% of the market value, above its five-year average of -1.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Gross margin: 43.8%**. Advance Auto Parts Inc. keeps 43.8% of revenue after the direct cost of what it sells.
- **Operating margin: 1.8%**. 1.8% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 0.5%**. 0.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 2.0%**. 2.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 4.6%**. Return on all capital, debt included, is 4.6%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.5%**. Each dollar of assets produces 0.5% of profit.

## Growth
- **Revenue growth (1 yr): -5.4%** (3-yr -2.0%/yr, 5-yr -3.2%/yr). Revenue fell 5.4% over the last year, against -3.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 113.0%** (3-yr -54.3%/yr, 5-yr -36.6%/yr). Earnings per share rose 113.0%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.55**. Debt is 1.55 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 1.14**. A Z-score of 1.14 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 2.26%** ($1.00 per share, trailing). Advance Auto Parts Inc. yields 2.26%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 136%** (31% of free cash flow). The dividend exceeds earnings (136% payout), though free cash flow still covers it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: hold** (19 analysts). 19 analysts cover Advance Auto Parts Inc.; the consensus is hold, with an average price target of $50.21 (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -25.0%** (YTD 14.1%, 3-mo -21.9%). The shares are down 25.0% over twelve months including dividends.
- **From 52-week high: -32.2%** (16.6% above the low). Trading 32% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 1.31** (volatility 58%). Beta of 1.31 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AAP · Page: https://foliofundamentals.com/stocks/aap

Not investment advice.