Advance Auto Parts, Inc. engages in the provision of automotive aftermarket parts in the United States and internationally. 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 wire; 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; 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 and checking; 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 under the Advance Auto Parts and Carquest names. The company has stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada; and independently owned Carquest branded stores in Mexico and the Caribbean Islands. Advance Auto Parts, Inc. was founded in 1929 and is based in Raleigh, North Carolina.
Turnaround Tactics | Advance Auto Parts unveils ambitious restructuring plan, including the sale of Worldpac, to revitalize operations and close the gap with industry leaders |
Financial Targets | Management sets sights on $9 billion in sales and 7% operating margin by 2027, with analysts cautiously projecting EPS around $7.00 |
Market Challenges | AAP grapples with operational inefficiencies and DIY sector weakness, while analysts maintain a wary stance due to past turnaround failures |
Analyst Outlook | Price targets range from $40 to $66, reflecting mixed sentiment on AAP's ability to execute its strategic plan and improve competitive positioning |
Metrics to compare | AAP | Sector Sector - Average of metrics from a broad group of related Consumer Cyclicals sector companies | Relationship RelationshipAAPPeersSector | |
---|---|---|---|---|
P/E Ratio | −3.3x | −12.6x | 10.4x | |
PEG Ratio | 0.00 | 0.09 | 0.02 | |
Price/Book | 0.9x | 0.5x | 1.4x | |
Price / LTM Sales | 0.2x | 0.0x | 0.9x | |
Upside (Analyst Target) | 20.1% | 43.4% | 27.8% | |
Fair Value Upside | Unlock | 21.1% | 10.7% | Unlock |