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Upturn AI SWOT - About
AAP 
Advance Auto Parts Inc (AAP)
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Upturn Advisory Summary
01/21/2025: AAP (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -36.27% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.35B USD | Price to earnings Ratio - | 1Y Target Price 41.38 |
Price to earnings Ratio - | 1Y Target Price 41.38 | ||
Volume (30-day avg) 1877113 | Beta 1.29 | 52 Weeks Range 33.08 - 83.66 | Updated Date 03/31/2025 |
52 Weeks Range 33.08 - 83.66 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 2.55% | Basic EPS (TTM) -9.84 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -3.69% | Operating Margin (TTM) -3.99% |
Management Effectiveness
Return on Assets (TTM) 0.15% | Return on Equity (TTM) -25.03% |
Valuation
Trailing PE - | Forward PE 25.97 | Enterprise Value 4147409686 | Price to Sales(TTM) 0.26 |
Enterprise Value 4147409686 | Price to Sales(TTM) 0.26 | ||
Enterprise Value to Revenue 0.46 | Enterprise Value to EBITDA 16.2 | Shares Outstanding 59833100 | Shares Floating 59307427 |
Shares Outstanding 59833100 | Shares Floating 59307427 | ||
Percent Insiders 0.96 | Percent Institutions 123.02 |
Analyst Ratings
Rating 3.03 | Target Price 43.71 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 23 | Sell 2 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Advance Auto Parts Inc
Company Overview
History and Background
Advance Auto Parts, Inc. was founded in 1932 by Arthur Taubman in Roanoke, Virginia. It grew organically and through acquisitions, becoming a major player in the automotive aftermarket parts industry. Significant milestones include its initial public offering and expansion into various markets.
Core Business Areas
- Retail: Sells automotive parts, accessories, batteries, and maintenance items to do-it-yourself (DIY) customers and professional installers through its retail stores and online platform.
- Commercial: Supplies automotive parts and related products to independently owned service stations, jobbers, body shops, and independent garages.
Leadership and Structure
The leadership team includes the CEO, CFO, and other key executives. The organizational structure typically involves functional departments such as merchandising, marketing, supply chain, and store operations.
Top Products and Market Share
Key Offerings
- Batteries: Automotive batteries account for a significant portion of revenue. Market share data varies, but Advance competes with AutoZone, O'Reilly Automotive, and Walmart in this segment. Competitors include: AutoZone (AZO), O'Reilly Automotive (ORLY), Walmart (WMT), Interstate Batteries.
- Brakes: Brake pads, rotors, calipers, and related components are core products. Advance competes with other auto parts retailers and manufacturers. Competitors include: AutoZone (AZO), O'Reilly Automotive (ORLY), Bosch, Akebono.
- Engine Parts: Starters, alternators, water pumps, and other engine components. Competitors include: AutoZone (AZO), O'Reilly Automotive (ORLY), NAPA Auto Parts, CARQUEST.
- Maintenance Items: Oil, filters, antifreeze, and other routine maintenance products. Competitors include: AutoZone (AZO), O'Reilly Automotive (ORLY), Walmart (WMT), Amazon (AMZN).
Market Dynamics
Industry Overview
The automotive aftermarket is a large and fragmented industry driven by vehicle age, miles driven, and the complexity of modern vehicles. Key trends include increasing vehicle technology, growing demand for electric vehicle parts, and evolving consumer behavior.
Positioning
Advance Auto Parts positions itself as a leading provider of automotive parts, accessories, and services, catering to both DIY customers and professional installers. It aims to differentiate itself through a combination of product selection, competitive pricing, and customer service.
Total Addressable Market (TAM)
The US automotive aftermarket TAM is estimated to be hundreds of billions of dollars. Advance Auto Parts has a significant portion of this TAM, aiming to increase market share through strategic initiatives and expansions.
Upturn SWOT Analysis
Strengths
- Extensive store network
- Strong brand recognition
- Loyalty programs
- Commercial customer relationships
Weaknesses
- Inventory management challenges
- Inconsistent customer service perceptions
- Supply chain vulnerabilities
- Debt Levels
Opportunities
- Expansion into new markets and product categories
- Growth in electric vehicle parts demand
- Enhanced online and digital capabilities
- Consolidation within the aftermarket industry
Threats
- Increased competition from online retailers
- Fluctuations in raw material prices
- Economic downturns impacting consumer spending
- Changes in vehicle technology and repair methods
Competitors and Market Share
Key Competitors
- AZO
- ORLY
- GPC
Competitive Landscape
Advance Auto Parts faces intense competition from other national and regional auto parts retailers, as well as online retailers. It competes on price, product selection, customer service, and brand reputation.
Major Acquisitions
Worldpac
- Year: 2014
- Acquisition Price (USD millions): 2000
- Strategic Rationale: Expanded commercial business and increased exposure to import parts.
Growth Trajectory and Initiatives
Historical Growth: Advance Auto Parts has experienced growth through organic expansion and acquisitions. Growth rates vary depending on economic conditions and industry trends.
Future Projections: Analyst estimates for future growth are subject to change but generally consider factors such as industry growth, market share gains, and cost management initiatives.
Recent Initiatives: Recent strategic initiatives may include investments in supply chain optimization, e-commerce enhancements, and store network expansion.
Summary
Advance Auto Parts is a major player in the automotive aftermarket, benefiting from its extensive store network and brand recognition. However, challenges with inventory management and online competition persist. Strategic initiatives aimed at improving supply chain efficiency and enhancing the customer experience will be critical for future growth.
Similar Companies
- AZO
- ORLY
- GPC
- LAD
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Industry Reports
- Financial News Outlets
- Analyst Estimates
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Advance Auto Parts Inc
Exchange NYSE | Headquaters Raleigh, NC, United States | ||
IPO Launch date 2001-11-29 | President, CEO & Director Mr. Shane M. O'Kelly | ||
Sector Consumer Cyclical | Industry Specialty Retail | Full time employees 33200 | |
Full time employees 33200 | |||
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.
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