Fact based stock research
Advance Auto Parts (NYSE:AAP)
US00751Y1064
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Advance Auto Parts stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), Advance Auto Parts (Automotive Retail, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Advance Auto Parts are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), show above-average growth (Growth Rank of 59), and are safely financed (Safety Rank of 52), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on Advance Auto Parts's financial characteristics. As the company Advance Auto Parts's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 53), above-average growth (Obermatt Growth Rank of 59), and indicate that the company is safely financed (Obermatt Safety Rank of 52), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Advance Auto Parts. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Automotive Retail |
| Index | Dividends USA, S&P US Luxury, S&P 500 |
| Size class | Large |
This stock has achievements: Top 10 Stock.
31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Advance Auto Parts
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 49 |
|
84 |
|
73 |
|
53 |
|
| GROWTH | ||||||||
| GROWTH | 23 |
|
23 |
|
29 |
|
59 |
|
| SAFETY | ||||||||
| SAFETY | 70 |
|
84 |
|
75 |
|
52 |
|
| SENTIMENT | ||||||||
| SENTIMENT | 87 |
|
38 |
|
9 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | 61 |
|
66 |
|
47 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), Advance Auto Parts (Automotive Retail, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Advance Auto Parts are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), show above-average growth (Growth Rank of 59), and are safely financed (Safety Rank of 52), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on Advance Auto Parts's financial characteristics. As the company Advance Auto Parts's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 53), above-average growth (Obermatt Growth Rank of 59), and indicate that the company is safely financed (Obermatt Safety Rank of 52), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Advance Auto Parts. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 49 |
|
84 |
|
73 |
|
53 |
|
| GROWTH | ||||||||
| GROWTH | 23 |
|
23 |
|
29 |
|
59 |
|
| SAFETY | ||||||||
| SAFETY | 70 |
|
84 |
|
75 |
|
52 |
|
| COMBINED | ||||||||
| COMBINED | 51 |
|
83 |
|
78 |
|
62 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 53 (better than 53% compared with alternatives), Advance Auto Parts shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Advance Auto Parts. Expected dividend yields are higher than for 82% of comparable companies (a Dividend Yield rank of 82), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 43 which means that the stock price compared with what market professionals expect for future profits is higher than for 57% of comparable companies, indicating a low value concerning Advance Auto Parts's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Advance Auto Parts with a rank of 26. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 74% of comparable companies, indicating a low value concerning Advance Auto Parts's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 53, is a buy recommendation based on Advance Auto Parts's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Advance Auto Parts may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 28 |
|
61 |
|
67 |
|
43 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 33 |
|
46 |
|
12 |
|
26 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 34 |
|
70 |
|
66 |
|
55 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 92 |
|
76 |
|
86 |
|
82 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 49 |
|
84 |
|
73 |
|
53 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), Advance Auto Parts shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Advance Auto Parts. Profit Growth has a rank of 100 which means that currently professionals expect the company to grow its profits more than 100% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 54, and Stock Returns has a rank of 55 which means that the stock returns have recently been above 55% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 8 (92% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 23 |
|
39 |
|
1 |
|
8 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 25 |
|
19 |
|
45 |
|
100 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 24 |
|
92 |
|
100 |
|
54 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 75 |
|
7 |
|
31 |
|
55 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 23 |
|
23 |
|
29 |
|
59 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 52 (better than 52% compared with alternatives), the company Advance Auto Parts has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Advance Auto Parts is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Advance Auto Parts.Leverage is at 53, meaning the company has a below-average debt-to-equity ratio. It has less debt than 53% of its competitors.Refinancing is at a rank of 74, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 74% of its competitors. Liquidity is at 6, meaning that the company generates less profit to service its debt than 94% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 52 (better than 52% compared with alternatives), Advance Auto Parts has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Advance Auto Parts more challenging. ...read more
| SAFETY METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 66 |
|
63 |
|
57 |
|
53 |
|
| REFINANCING | ||||||||
| REFINANCING | 39 |
|
76 |
|
88 |
|
74 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 73 |
|
70 |
|
32 |
|
6 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 70 |
|
84 |
|
75 |
|
52 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
23 |
|
18 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | 32 |
|
43 |
|
47 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | 83 |
|
62 |
|
13 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | 88 |
|
27 |
|
22 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | 87 |
|
38 |
|
9 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Advance Auto Parts from July 31, 2025.
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