• Twitter
• Facebook
• Snapchat
• Pinterest
• LinkedIn
• Tumblr

---

Fundamental analysis: Advance Auto Parts, Inc. (AAP)

Awarener score: 7.0

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

• Business has been shrinking. It's been below average when measured against peer companies.
• Advance Auto Parts, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 5.8

• AAP profit margins -on goods and services sold- are usually sufficient. They stand somewhat better than rival companies.
• Business profit on sales tends to be sufficient. It's similar to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain rather normal in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain encouraging in relation to rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 3.6

• Advance Auto Parts, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
• In recent years, earnings -on operations- have been growing at a very low step, which has been mediocre against comparable firms.
• Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- grew at a very low speed. It was mediocre against rivals.
• In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
• Earnings per share have grown at a very low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 4.0

• AAP had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.2

• Advance Auto Parts, Inc. usually gets very good returns on the resources it controls. It proves almost average when measured against peer firms.
• The company normally gets very good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
• There's usually excellent profitability -in relation to owned resources-. It ranks similar to competitors.
• In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 6.6

• AAP usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands almost average when measured against rival firms.
• The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is similar to industry peers.
• In the past twelve months it paid very good dividends, considering the current stock price. It came well ranked against competitors.
• Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved in good shape compared to similar firms.
• Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks somewhat worse than comparable companies.
• The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
• The company uses a lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks substantially worse when measured against competitors.

Balance Sheet score: 4.8

• Advance Auto Parts, Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
• A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat better than rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks almost average when measured against rivals.
• For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a weak position compared to peer firms.
• For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is worse than most similar enterprises.
• Usually, sales are on a month credit. It still ranks substantially worse when measured against peers.
• Normally has more than six months of sales worth in inventory. It comes up as a disappointment compared to competitors.
• On average, it takes a lot of months from the purchase to charging customers. It happens to be bottom tier against peers.
• On average pays suppliers many months after the purchase. It ranks top tier when measured against industry peers.
• The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's lacking compared to similar companies.
• Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands somewhat better than rival firms.
• Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
• Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a very weak position compared to similar firms.
• Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still worse than most peer companies.

Valuation score: 6.4

• Advance Auto Parts, Inc. looks somewhat expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly worse than similar companies.
• The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still below average when measured against industry firms.
• In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
• The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks somewhat worse than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks almost average when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
• The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
• In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be similar to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 5.7

---

Awarener score: 7.0

Conclusion

Support us!

We are an independent project. No ads, no suscription, no registration required.

• Donate!