Advance Auto Parts (AAP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Advance Auto Parts

NYSE•Consumer Cyclical•Auto Parts

$42.00+0.10(<0.01%)Market open

Market Cap

$2.53B

P/E

30.1x

P/S

0.3x

P/B

1.1x

Advance Auto Parts, Inc. provides automotive aftermarket parts. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also provides air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluid; electrical wire and fuses; electronics; floor mats, seat covers, and interior accessories; hand and specialty tools; lighting products; performance parts; sealants, adhesives, and compounds; tire repair accessories; vent shades, mirrors, and exterior accessories; washes, waxes, and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oil; oil filters; part cleaners and treatments; and transmission fluid. Further, it provides battery and wiper installation; engine light scanning; electrical system testing, including batteries, starters, and alternators; oil and battery recycling; and loaner tool program services. The company serves professional installers and do-it-yourself customers. It operates stores and independently owned branded stores in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Mexico, and various Caribbean islands primarily under the Advance Auto Parts and Carquest trade brands. The company also offers its products online. The company was founded in 1929 and is based in Raleigh, North Carolina.

How this company scores

AverageMetricSide Score: 53/100

Strongest: Growth (20/25); weakest: Cash & Earnings Quality (9/25).

Profitability13/25

Growth20/25

Balance Sheet & Red Flags11/25

Cash & Earnings Quality9/25

Strengths

Rising earningsProfit converts from growthImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 30.1x5y range 12.1x – 173.0x

Currently above its 15-quarter median.

P/S · 0.3x5y range 0.2x – 1.4x

Currently below its 20-quarter median.

P/B · 1.1x5y range 0.9x – 4.8x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 6 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $2.53B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $8.62B
Q. Revenue: $2.00B
TTM EBITDA: $617.00M
TTM Op. Income: $236.00M
Q. Op. Income: $101.00M
TTM Net Income: $84.00M
Q. Net Income: $55.00M
EPS: $0.91
Shares Out.: $60.30M

$8.62B in TTM revenue grew 13.5% YoY, reaching $2.00B last quarter. TTM EBITDA of $617.00M and TTM operating income of $236.00M show growth is flowing through to the bottom line. TTM net income of $84.00M means revenue is converting into profit. Over the past year, TTM revenue is up 13% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 46.2%
EBITDA Margin: 7.8%
Op. Margin: 5.1%
Net Margin: 2.8%

Op. margin of 5.1% is up 4.0% YoY — cost efficiency is improving. Net margin at 2.8% and gross margin of 46.2% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 3 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 30.1x
P/S Ratio: 0.3x
P/B Ratio: 1.1x

At 30.1x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.3x and P/B of 1.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 0% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $12.02B
Cash: $3.12B
Long-Term Debt: $3.39B
Book Value: $2.26B
D/E Ratio: 1.5
Debt/EBITDA: 21.6

With $12.02B in assets and $3.39B in long-term debt, D/E is 1.5and book value is $2.26B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $271.00M
TTM Free Cash Flow: $23.00M
FCF Margin: 0.3%
FCF / Net Income: 0.3

TTM FCF of $23.00M on $271.00M in operating cash flow. The FCF / Net Income ratio of 0.3x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.