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How to buy Advance Auto Parts stock
Learn how to easily invest in Advance Auto Parts stock.
Advance Auto Parts Inc is a specialty retail business based in the US. Advance Auto Parts shares (AAP) are listed on the NYSE and all prices are listed in US Dollars. Advance Auto Parts employs 41,000 staff and has a trailing 12-month revenue of around $11.1 billion.
How to buy shares in Advance Auto Parts
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – AAP – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
What's in this guide?
- AAP shares summary
- Compare share dealing platforms
- Is AAP stock a buy or sell?
- Stock performance over time
- Is AAP suitable for ethical investing?
- Are AAP shares over-valued?
- Advance Auto Parts's financials
- How volatile are AAP shares?
- Does Advance Auto Parts pay a dividend?
- Have AAP shares ever split?
- Other common questions
Advance Auto Parts stock price (NYSE: AAP)Use our graph to track the performance of AAP stocks over time.
Advance Auto Parts shares at a glance
|Latest market close||$156.34|
|52-week range||$157.79 - $238.55|
|50-day moving average||$185.08|
|200-day moving average||$204.14|
|Wall St. target price||$208.67|
|Dividend yield||$5 (3.74%)|
|Earnings per share (TTM)||$8.63|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Is it a good time to buy Advance Auto Parts stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Advance Auto Parts price performance over time
|1 week (2022-09-22)||-4.73%|
|1 month (2022-08-29)||N/A|
|3 months (2022-06-30)||-9.68%|
|6 months (2022-04-01)||-24.65%|
|1 year (2021-10-01)||-24.84%|
|2 years (2020-10-02)||0.54%|
|3 years (2019-10-02)||162.96|
|5 years (2017-09-29)||57.60%|
Is Advance Auto Parts stock undervalued or overvalued?
Valuing Advance Auto Parts stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Advance Auto Parts's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Advance Auto Parts's P/E ratio
Advance Auto Parts's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 19x. In other words, Advance Auto Parts shares trade at around 19x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Advance Auto Parts's PEG ratio
Advance Auto Parts's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.8709. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Advance Auto Parts's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Advance Auto Parts's EBITDA
Advance Auto Parts's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.1 billion.
The EBITDA is a measure of a Advance Auto Parts's overall financial performance and is widely used to measure a its profitability.
Advance Auto Parts financials
|Revenue TTM||$11.1 billion|
|Operating margin TTM||7.11%|
|Gross profit TTM||$4.9 billion|
|Return on assets TTM||4.1%|
|Return on equity TTM||17.57%|
|Market capitalisation||$9.6 billion|
TTM: trailing 12 months
Advance Auto Parts's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Advance Auto Parts.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Advance Auto Parts's total ESG risk score
Total ESG risk: 17.4
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Advance Auto Parts's overall score of 17.4 (as at 12/31/2018) is excellent – landing it in it in the 9th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Advance Auto Parts is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Advance Auto Parts's environmental score
Environmental score: 6.6/100
Advance Auto Parts's environmental score of 6.6 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Advance Auto Parts is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Advance Auto Parts's social score
Social score: 12.17/100
Advance Auto Parts's social score of 12.17 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Advance Auto Parts is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Advance Auto Parts's governance score
Governance score: 9.13/100
Advance Auto Parts's governance score puts it squarely in the 7th percentile of companies rated in the same sector. That could suggest that Advance Auto Parts is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Advance Auto Parts's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Advance Auto Parts scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Advance Auto Parts has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||17.4|
|Total ESG percentile||8.52|
|Environmental score percentile||7|
|Social score percentile||7|
|Governance score percentile||7|
|Level of controversy||2|
Advance Auto Parts share dividends
Dividend payout ratio: 43.69% of net profits
Recently Advance Auto Parts has paid out, on average, around 43.69% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.74% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Advance Auto Parts shareholders could enjoy a 3.74% return on their shares, in the form of dividend payments. In Advance Auto Parts's case, that would currently equate to about $5 per share.
While Advance Auto Parts's payout ratio might seem fairly standard, it's worth remembering that Advance Auto Parts may be investing much of the rest of its net profits in future growth.
Advance Auto Parts's most recent dividend payout was on 29 September 2022. The latest dividend was paid out to all shareholders who bought their shares by 14 September 2022 (the "ex-dividend date").
Have Advance Auto Parts's shares ever split?
Advance Auto Parts's shares were split on a 3:2 basis on 25 September 2005. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Advance Auto Parts shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Advance Auto Parts shares which in turn could have impacted Advance Auto Parts's share price.
Advance Auto Parts share price volatility
Over the last 12 months, Advance Auto Parts's shares have ranged in value from as little as $157.79 up to $238.5455. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Advance Auto Parts's is 1.2421. This would suggest that Advance Auto Parts's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Advance Auto Parts overview
Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and 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 offers air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluids; electrical wires 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 oils; oil filters, part cleaners and treatments; and transmission fluids for engine maintenance. Further, it offers battery and wiper installation; engine light scanning and checking; electrical system testing; video clinic; oil and battery recycling; and loaner tool program services. Additionally, the company sells its products through its website.
Frequently asked questionsWhat percentage of Advance Auto Parts is owned by insiders or institutions?
Currently 0.779% of Advance Auto Parts shares are held by insiders and 103.671% by institutions. How many people work for Advance Auto Parts?
Latest data suggests 41,000 work at Advance Auto Parts. When does the fiscal year end for Advance Auto Parts?
Advance Auto Parts's fiscal year ends in December. Where is Advance Auto Parts based?
Advance Auto Parts's address is: 4200 Six Forks Road, Raleigh, NC, United States, 27604 What is Advance Auto Parts's ISIN number?
Advance Auto Parts's international securities identification number is: US00751Y1064 What is Advance Auto Parts's CUSIP number?
Advance Auto Parts's Committee on Uniform Securities Identification Procedures number is: 00751Y106
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