Recent News
On February 17, 2026, the U.S. Court of Appeals for the Fourth Circuit affirmed dismissal of a securities fraud class action against Advance Auto Parts and certain executives. The company’s public filings calendar lists ex‑dividend dates including January 9, 2026 and April 10, 2026.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX at 12.04 indicates no established trend strength; however DI+ at 23.16 rising and DI‑ at 19.77 falling point to a bullish directional bias despite the weak ADX reading.
MACD: MACD at 0.62 trading above its signal line (0.21) with an increasing MACD_trend constitutes a bullish momentum signal and supports the near‑term upside bias identified by the directional indicators.
MRO (Momentum/Regression Oscillator): MRO at 19.09 and rising shows price sits above the model target, implying elevated short‑term downside risk as the market prices exceed modeled fair levels.
RSI: RSI at 53.62 and increasing sits in neutral territory with upward momentum, consistent with a controlled bullish move rather than an overbought extreme.
Price vs Moving Averages & Ichimoku: The close at $56.53 sits above the 12‑day EMA ($53.13), 26‑day EMA ($52.41), and the 200‑day average ($52.88); Tenkan/Kijun at $51.96 and Senkou A/B at $55.05/$51.55 leave price above the cloud, reinforcing the constructive near‑term technical posture.
Bollinger Bands & Volatility: Price above the 1x upper band ($54.72) but below the 2x upper band ($57.17) suggests elevated price dispersion without extreme breakout; 42‑day volatility at 3% versus 5% over 52 weeks indicates relatively contained recent realized volatility.
Volume Profile: Recent volume (1,423,470) slightly exceeds the 10‑day average (1,234,751) but remains below longer averages, supporting the view of measured participation on the current advance.
Fundamental Analysis
Profitability & Margins: Total revenue stands at $1,973,000,000 with gross margin 44.05% and operating margin 3.45%; EBIT equals $74,000,000, producing an EBIT margin of 3.75%. That EBIT margin sits below the industry peer mean (11.71%) and median (10.83%) while remaining within the industry peer range (approximately -7.69% to 18.99%).
Earnings & EPS: Reported EPS of $0.86 exceeded the estimate of $0.41 by $0.45, a surprise of roughly +110%, which underpins the stronger reported bottom‑line figure despite modest operating margins.
Cash Flow & Liquidity: Operating cash flow reached $72,000,000 while free cash flow finished negative at -$21,000,000, yielding a free cash flow yield of -0.72%. Cash and short‑term investments total $3,123,000,000 and the current ratio equals 1.75, with the current ratio up about 32.6% year‑over‑year, supporting near‑term liquidity coverage despite negative FCF.
Leverage & Coverage: Total debt of $5,224,000,000 produces a debt/EBITDA ratio near 39.6 and a debt/equity ratio of 2.38; interest coverage rests around 1.40. Those metrics indicate elevated leverage and constrained interest‑coverage headroom relative to typical investment‑grade fundamentals.
Working Capital & Efficiency: Days inventory outstanding sits at ~290 days while days payables outstanding reach ~243 days, yielding a cash conversion cycle of 65.3 days (up ~16.1% YoY). Asset turnover equals 0.165, well below the industry peer mean of 0.316, highlighting lower sales productivity on invested assets.
Valuation: Market multiples look rich: trailing P/E ~56.8 and forward P/E ~50.6, P/B ~1.33, and enterprise multiple ~38.1. WMDST values the stock as over‑valued, a conclusion consistent with elevated P/E and enterprise multiple versus the company’s modest profitability, negative free cash flow, and high leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-13 |
| NEXT REPORT DATE: | 2026-05-15 |
| CASH FLOW | Begin Period Cash Flow | $ 3.2 B |
| Operating Cash Flow | $ 72.0 M | |
| Capital Expenditures | $ -93.00 M | |
| Change In Working Capital | $ -23.00 M | |
| Dividends Paid | $ -15.00 M | |
| Cash Flow Delta | $ -51.00 M | |
| End Period Cash Flow | $ 3.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.0 B | |
| Forward Revenue | $ 4.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.1 B | |
| Depreciation | $ 58.0 M | |
| Depreciation and Amortization | $ 58.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 869.0 M | |
| EBITDA | $ 132.0 M | |
| EBIT | $ 74.0 M | |
| Operating Income | $ 68.0 M | |
| Interest Income | — | |
| Interest Expense | $ 53.0 M | |
| Net Interest Income | $ -53.00 M | |
| Income Before Tax | $ 21.0 M | |
| Tax Provision | $ -9.00 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 6.0 M | |
| Net Income From Continuing Operations | $ 30.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.41 | |
| EPS Actual | $ 0.86 | |
| EPS Difference | $ 0.45 | |
| EPS Surprise | 109.756 % | |
| Forward EPS | $ 0.98 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.8 B | |
| Intangible Assets | $ 1.0 B | |
| Net Tangible Assets | $ 1.2 B | |
| Total Current Assets | $ 7.3 B | |
| Cash and Short-Term Investments | $ 3.1 B | |
| Cash | $ 3.1 B | |
| Net Receivables | $ 370.0 M | |
| Inventory | $ 3.6 B | |
| Long-Term Investments | $ 110.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 3.0 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 4.2 B | |
| Net Debt | $ 289.0 M | |
| Total Debt | $ 5.2 B | |
| Total Liabilities | $ 9.6 B | |
| EQUITY | ||
| Total Equity | $ 2.2 B | |
| Retained Earnings | $ 4.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.62 | |
| Shares Outstanding | 60.022 M | |
| Revenue Per-Share | $ 32.87 | |
| VALUATION | Market Capitalization | $ 2.9 B |
| Enterprise Value | $ 5.0 B | |
| Enterprise Multiple | 38.135 | |
| Enterprise Multiple QoQ | -26.027 % | |
| Enterprise Multiple YoY | -717.829 % | |
| Enterprise Multiple IPRWA | high: 135.997 median: 79.36 mean: 72.622 AAP: 38.135 low: -9.179 |
|
| EV/R | 2.551 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.38 | |
| Asset To Liability | 1.228 | |
| Debt To Capital | 0.704 | |
| Debt To Assets | 0.442 | |
| Debt To Assets QoQ | 1.254 % | |
| Debt To Assets YoY | 29.395 % | |
| Debt To Assets IPRWA | high: 1.07 median: 0.513 mean: 0.485 AAP: 0.442 low: 0.13 |
|
| Debt To Equity | 2.377 | |
| Debt To Equity QoQ | -0.839 % | |
| Debt To Equity YoY | 39.904 % | |
| Debt To Equity IPRWA | high: 4.879 AAP: 2.377 mean: 1.554 median: 1.395 low: -2.088 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.334 | |
| Price To Book QoQ | -13.286 % | |
| Price To Book YoY | 7.247 % | |
| Price To Book IPRWA | high: 11.1 mean: 5.409 median: 3.522 AAP: 1.334 low: -3.282 |
|
| Price To Earnings (P/E) | 56.818 | |
| Price To Earnings QoQ | -102.018 % | |
| Price To Earnings YoY | -247.515 % | |
| Price To Earnings IPRWA | high: 190.196 median: 123.637 mean: 102.12 AAP: 56.818 low: -123.055 |
|
| PE/G Ratio | -0.013 | |
| Price To Sales (P/S) | 1.486 | |
| Price To Sales QoQ | -10.396 % | |
| Price To Sales YoY | 9.901 % | |
| Price To Sales IPRWA | high: 13.982 mean: 7.412 median: 7.187 AAP: 1.486 low: 0.209 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 50.633 | |
| Forward PE/G | -0.012 | |
| Forward P/S | 0.613 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -30.617 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.165 | |
| Asset Turnover Ratio QoQ | -8.313 % | |
| Asset Turnover Ratio YoY | -3.713 % | |
| Asset Turnover Ratio IPRWA | high: 0.861 mean: 0.316 median: 0.269 AAP: 0.165 low: 0.079 |
|
| Receivables Turnover | 4.945 | |
| Receivables Turnover Ratio QoQ | 18.157 % | |
| Receivables Turnover Ratio YoY | 55.79 % | |
| Receivables Turnover Ratio IPRWA | high: 95.74 mean: 14.81 median: 10.864 AAP: 4.945 low: 0.298 |
|
| Inventory Turnover | 0.301 | |
| Inventory Turnover Ratio QoQ | -3.815 % | |
| Inventory Turnover Ratio YoY | -30.18 % | |
| Inventory Turnover Ratio IPRWA | high: 2.463 mean: 0.701 median: 0.616 AAP: 0.301 low: 0.294 |
|
| Days Sales Outstanding (DSO) | 18.453 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 65.303 | |
| Cash Conversion Cycle Days QoQ | 13.712 % | |
| Cash Conversion Cycle Days YoY | 16.061 % | |
| Cash Conversion Cycle Days IPRWA | high: 342.592 AAP: 65.303 mean: 24.289 median: 14.212 low: -161.35 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.634 | |
| CapEx To Revenue | -0.047 | |
| CapEx To Depreciation | -1.603 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 5.6 B | |
| Net Invested Capital | $ 5.6 B | |
| Invested Capital | $ 5.6 B | |
| Net Tangible Assets | $ 1.2 B | |
| Net Working Capital | $ 3.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.748 | |
| Current Ratio | 1.746 | |
| Current Ratio QoQ | 0.985 % | |
| Current Ratio YoY | 32.567 % | |
| Current Ratio IPRWA | high: 4.055 AAP: 1.746 mean: 1.166 median: 1.045 low: 0.323 |
|
| Quick Ratio | 0.873 | |
| Quick Ratio QoQ | -0.759 % | |
| Quick Ratio YoY | 60.817 % | |
| Quick Ratio IPRWA | high: 2.051 AAP: 0.873 mean: 0.307 median: 0.219 low: 0.059 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 39.576 | |
| Cost Of Debt | 0.607 % | |
| Interest Coverage Ratio | 1.396 | |
| Interest Coverage Ratio QoQ | 46.972 % | |
| Interest Coverage Ratio YoY | -103.273 % | |
| Interest Coverage Ratio IPRWA | high: 96.404 mean: 14.58 median: 8.4 AAP: 1.396 low: -74.758 |
|
| Operating Cash Flow Ratio | -0.007 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 243.096 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.4 | |
| Dividend Payout Ratio | 2.5 | |
| Dividend Rate | $ 0.25 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.932 % | |
| Revenue Growth | -3.094 % | |
| Revenue Growth QoQ | -339.104 % | |
| Revenue Growth YoY | -56.269 % | |
| Revenue Growth IPRWA | high: 40.269 % AAP: -3.094 % mean: -4.058 % median: -4.227 % low: -25.856 % |
|
| Earnings Growth | -4400.0 % | |
| Earnings Growth QoQ | 4176.038 % | |
| Earnings Growth YoY | -254.386 % | |
| Earnings Growth IPRWA | high: 87.591 % median: -16.471 % mean: -18.429 % low: -400.0 % AAP: -4400.0 % |
|
| MARGINS | ||
| Gross Margin | 44.045 % | |
| Gross Margin QoQ | 1.789 % | |
| Gross Margin YoY | 153.278 % | |
| Gross Margin IPRWA | high: 96.271 % median: 44.097 % AAP: 44.045 % mean: 41.472 % low: 10.184 % |
|
| EBIT Margin | 3.751 % | |
| EBIT Margin QoQ | 101.018 % | |
| EBIT Margin YoY | -109.283 % | |
| EBIT Margin IPRWA | high: 18.986 % mean: 11.714 % median: 10.828 % AAP: 3.751 % low: -7.692 % |
|
| Return On Sales (ROS) | 3.447 % | |
| Return On Sales QoQ | 27.619 % | |
| Return On Sales YoY | -108.531 % | |
| Return On Sales IPRWA | high: 19.991 % mean: 11.761 % median: 11.014 % AAP: 3.447 % low: -7.69 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -21.00 M | |
| Free Cash Flow Yield | -0.716 % | |
| Free Cash Flow Yield QoQ | -68.178 % | |
| Free Cash Flow Yield YoY | -84.458 % | |
| Free Cash Flow Yield IPRWA | high: 9.132 % median: 0.448 % mean: 0.356 % AAP: -0.716 % low: -10.237 % |
|
| Free Cash Growth | -72.368 % | |
| Free Cash Growth QoQ | -102.974 % | |
| Free Cash Growth YoY | -84.88 % | |
| Free Cash Growth IPRWA | high: 382.415 % median: 19.716 % mean: -54.973 % AAP: -72.368 % low: -636.544 % |
|
| Free Cash To Net Income | -3.5 | |
| Cash Flow Margin | -1.521 % | |
| Cash Flow To Earnings | -5.0 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.05 % | |
| Return On Assets QoQ | — | |
| Return On Assets YoY | -101.403 % | |
| Return On Assets IPRWA | high: 6.412 % median: 2.721 % mean: 2.441 % AAP: 0.05 % low: -2.24 % |
|
| Return On Capital Employed (ROCE) | 0.967 % | |
| Return On Equity (ROE) | 0.003 | |
| Return On Equity QoQ | -693.478 % | |
| Return On Equity YoY | -101.428 % | |
| Return On Equity IPRWA | high: 0.228 median: 0.041 mean: 0.008 AAP: 0.003 low: -0.235 |
|
| DuPont ROE | 0.273 % | |
| Return On Invested Capital (ROIC) | 0.791 % | |
| Return On Invested Capital QoQ | 47.85 % | |
| Return On Invested Capital YoY | -102.413 % | |
| Return On Invested Capital IPRWA | high: 12.426 % mean: 7.467 % median: 7.379 % AAP: 0.791 % low: -3.079 % |
|