AAP
Consumer Cyclical · Auto Parts
Performance
AAP (AAP) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
AAP (AAP) operates in the Auto Parts space within the Consumer Cyclical sector. With a market cap of $3.7B, it qualifies as a small-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.
- Forward P/E (15.2×) is lower than trailing P/E (54.3×) — analysts expect earnings to improve
- High P/E of 54.3× implies high expectations already priced in — leaves little room for disappointment
- Earnings fell 3% YoY — profitability is under pressure
- Thin profit margin of 0.5% — little buffer against cost increases
- High debt-to-equity of 255.31× increases financial risk, especially with elevated interest rates
Verdict
Avoid
Significant fundamental concerns outweigh positives. High risk at current levels.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
Current DY
1.64%
5Y Avg Annual
$2.1000
Last Payment
$0.2500
Ex-Date
04/10/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest04/10/2026 | 04/24/2026 | $0.2500 | 1.64% |
01/09/2026 | 01/23/2026 | $0.2500 | 1.64% |
10/10/2025 | 10/24/2025 | $0.2500 | 1.64% |
07/11/2025 | 07/25/2025 | $0.2500 | 1.64% |
04/11/2025 | 04/25/2025 | $0.2500 | 1.64% |
01/10/2025 | 01/24/2025 | $0.2500 | 1.64% |
10/11/2024 | 10/25/2024 | $0.2500 | 1.64% |
07/12/2024 | 07/26/2024 | $0.2500 | 1.64% |
Magic Number
Shares needed to self-fund your next purchase
$60.86
Price
$0.2500
Last div. (quarterly)
244
shares
Own 244 AAP shares ($14,849.84) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$14,849.84
New shares / year
+4 shares
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
Next Earnings
Aug 13, 2026
58
days
EPS (TTM)
$1.12
P/E (TTM)
54.3
Fwd P/E
15.2
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $60.86
Graham Number
√(22.5 × EPS × Book Value)
$30.49
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$44.17
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
7/10
70% score
Pays dividends
15Y hist.15+ years of dividend history
Dividend consistency (5Y+)
15 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
3.1%Return on equity — measures how efficiently capital is used
Positive profit margin
0.5%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+1.2%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
-2.5%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
255.31×Low financial leverage reduces risk of distress
Current ratio above 1
1.78×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$108M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
1.64%Stock must distribute income to shareholders
Related Assets
Consumer Cyclical
About AAP
Advance Auto Parts, Inc. provides automotive aftermarket parts. 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 wires; 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 products; 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; 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 and independently owned branded stores in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Mexico, and various Caribbean islands primarily under the Advance Auto Parts and Carquest trade brands. The company also offers its products online. The company was founded in 1929 and is based in Raleigh, North Carolina.
Sector
Consumer Cyclical
Industry
Auto Parts
Location
Raleigh, United States
Employees
28,274