Advance Auto Parts, Inc. (AAP) Stock

Advance Auto Parts, Inc. (AAP) is a Consumer Discretionary stock trading at $42.37 (as of 2026-08-20), with a market capitalization of $2.55B and a trailing P/E of 27.5. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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Understand Advance Auto Parts, Inc.: how it makes money

Advance Auto Parts sells automotive replacement parts, accessories, batteries, and maintenance items for cars, vans, SUVs, and trucks, and it makes money by generating sales through its retail store network and related parts-and-service channels.

Because gross margin is 45.1% while operating margin is 2.6%, results depend heavily on whether the business can translate store demand into operating leverage, which is directly tracked by Comparable Store Sales and reinforced by Speed Perks transaction share (48%).

Business quality (Mixed): A parts retailer where loyalty participation and store traffic trends matter most for operating leverage, but the current Comparable Store Sales trend is negative.

Valuation: At 86× earnings, AAP trades 351% above the Retail average (19×). Note: one-time items can distort reported P/E.

Bull case

  • Loyalty engagement: Speed Perks Active Members are 15,000,000, and Speed Perks Percentage of Transactions is 48%, indicating a large portion of transactions involve the program.
  • Operational execution focus: On-Hand Rates Improvement is 50, and Reduction in Store Delivery Time is 10, which can support in-stock performance and faster fulfillment.
  • Market focus: Percentage of Store Footprint Concentrated in Number One or Number Two Markets by Store Density is 75%, suggesting concentration in higher-density markets.

Bear case

  • Demand pressure: Comparable Store Sales is -0.6 percent, showing a decline in same-store performance.
  • Network contraction signals: Independent Locations Servicing Stopped is 191, and Underperforming Stores Closed is 17, which can indicate pressure in parts of the network.
Valuation — source: SEC EDGAR (first-party)
Price$42.37
Market Cap$2.55B
P/E Ratio27.5
EV / EBITDA6.0
Price / Book1.13
Price / Sales0.29
Dividend Yield2.3%
FCF Yield1.6%
DCF Value (model)$10.00
DCF Upside vs Price-76.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$8.60B
Net Margin0.5%
Return on Equity3.8%
Debt / Equity1.50
Current Ratio1.75
Revenue Growth (YoY)-0.5%
EPS Growth (YoY)264.0%
FCF Growth (YoY)-6600.0%
Financial Health — source: SEC EDGAR
Altman Z-Score1.68 (distress)
Valuation vs Sector & Industry
Stock P/E27.5
Sector P/E (Consumer Discretionary)20.5
Industry P/E (Retail)19.5
vs Sector34.1%
vs Industry40.7%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($470.85M)
Institutional Holders Tracked10
Congressional Trades (recent)3
Company
SectorConsumer Discretionary
IndustryRetail
CEOShane O'Kelly
Employees33,200
CountryUS
IPO Date2002-03-28

Related Companies (Business model: Brick-and-Mortar Retail (incl. Omnichannel); 8 closest by market cap; US-domiciled)

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  • OPENLANE, Inc. (OPLN)
  • Asbury Automotive Group, Inc. (ABG)
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Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.