Recent News
Mar 12, 2026 — H Partners increased its stake in Advance Auto Parts, adding roughly $19 million of stock during the fourth quarter, signaling continued activist investor interest.
Mar 28, 2026 — Advance Auto Parts extended its long-running NASCAR partnership, preserving brand activation and planned fan events tied to marketing and private‑label rollouts.
Apr 10, 2026 — Company declared a regular cash dividend of $0.25 per share with a payment date set for Apr 24, 2026; record/ex‑dividend timing published by market data services.
Late Q1–Q2 2026 — Company scheduled a presentation at the 2026 UBS Global Consumer & Retail Conference, preserving a public forum for management to outline strategic execution.
Technical Analysis
Directional indicators register a weak trend environment: ADX reads 17.87, indicating no established trend, while DI+ at 24.65 increasing and DI‑ at 15.8 decreasing together create a bullish directional signal that supports near‑term upside against the valuation headwind.
MACD registers 1.24 with the MACD line above the 0.79 signal line and trending higher; the MACD cross above its signal line constitutes a bullish momentum confirmation for short‑term price action.
MRO stands at 21.18 with a recent dip‑and‑reversal pattern; the positive MRO implies the market price sits above the model target and introduces a mean‑reversion downside bias despite the momentum signal.
RSI at 54.73 and rising points to constructive momentum without overbought conditions; the indicator supports continuation toward recent resistance rather than signaling an immediate exhaustion.
Price trades above most moving averages: close $57.49 sits above the 12‑day EMA $55.29 (rising), 26‑day EMA $53.90 and 200‑day average $53.16, aligning short‑term trend with momentum indicators while price hovers near the upper Bollinger band (upper 1σ $56.95, upper 2σ $59.27).
Ichimoku components place price above the cloud (Senkou A $54.58, Senkou B $51.55) and Tenkan/Kijun structure (Tenkan $54.48, Kijun $52.54) supports the bullish price posture but the low ADX limits conviction for a sustained trending move.
Fundamental Analysis
Earnings and profitability: Reported EPS $0.86 exceeded the $0.41 estimate by $0.45, representing roughly a 110% surprise versus consensus. Operating income and EBIT show positive operating leverage in the period but margins remain modest: EBIT margin 3.75% and operating margin 3.45%.
Margin context versus peers: EBIT margin 3.75% sits below the industry peer mean of 11.71% and below the industry peer median of 10.83%, while gross margin at 44.05% roughly matches the industry peer median around 44.10%, indicating product‑level profitability near peers but limited operating conversion. QoQ EBIT margin trend shows a small sequential improvement; YoY EBIT margin change reads materially negative in the supplied metric.
Liquidity and working capital: Current ratio 1.75 exceeds the industry peer mean 1.17, and quick ratio 0.87 improves YoY, supporting near‑term liquidity. Cash on hand $3,123,000,000 and cash and short‑term investments $3,123,000,000 provide cushioning against seasonal working capital demands even as inventory days (≈290 days) and a cash conversion cycle ~65 days remain long versus the industry peer mean.
Leverage and coverage: Total debt $5,224,000,000 with debt‑to‑equity 2.377 and debt‑to‑EBITDA ~39.6 indicate elevated leverage relative to operating earnings; interest coverage ~1.40 leaves limited margin for higher rates or weaker operating cash flow.
Cash flow and valuation signals: Free cash flow -$21,000,000 and free cash flow yield ≈‑0.72% reflect negative FCF generation in the period and a declining free cash growth profile. Valuation multiples remain rich on trailing metrics — P/E ~56.8 and forward P/E ~50.6 — while price‑to‑book ~1.33 sits below the industry peer mean and median. WMDST values the stock as over‑valued given the combination of stretched multiples and weak cash conversion.
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: 72.62 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: 0.096 |
|
| 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: 14.657 median: 8.4 AAP: 1.396 low: -15.692 |
|
| 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 % |
|