AAP Stock Intrinsic Value – ADVANCE AUTO PARTS Reports Second Quarter Earnings Results for FY2023 on June 30th 2023
September 5, 2023
🌥️Earnings Overview
At the end of June 30th 2023, ADVANCE AUTO PARTS ($NYSE:AAP) reported their second quarter earnings results for FY2023, showing total revenue of USD 2686.1 million, a 21.4% decrease from the same period in the prior year. Net income, however, increased 100.1% to USD 85.4 million.
Market Price
The news of the strong earnings report was well received by investors, as ADVANCE AUTO PARTS stock opened at $67.5 on Wednesday and closed at $69.4, a 3.1% increase from its previous closing price of $67.3. Overall, this report was positive news for ADVANCE AUTO PARTS and their investors, proving that the company is continuing to perform well and providing a strong outlook for the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AAP. More…
| Total Revenues | Net Income | Net Margin |
| 11.22k | 345.69 | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AAP. More…
| Operations | Investing | Financing |
| 249.12 | -357.41 | 159.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AAP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.3k | 9.58k | 45.8 |
Key Ratios Snapshot
Some of the financial key ratios for AAP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | -5.9% | 4.7% |
| FCF Margin | ROE | ROA |
| -1.0% | 12.3% | 2.7% |
Analysis – AAP Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of ADVANCE AUTO PARTS’ fundamentals and determined that the fair value of their shares is around $187.6. Our proprietary Valuation Line was used to calculate this figure, which offers investors a reliable means of measuring the intrinsic value of any company. Currently, the share price of ADVANCE AUTO PARTS is trading at $69.4, which is 63.0% lower than this fair value. This suggests that the stock is currently undervalued and presents an attractive purchasing opportunity to investors. More…
Peers
Advance Auto Parts Inc is an American automotive aftermarket parts retailer. Headquartered in Roanoke, Virginia, Advance Auto Parts has over 5,200 stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates under the Advance Auto Parts, Advance Discount Auto Parts, and Auto World names. Genuine Parts Co is an American service organization engaged in the distribution of automotive and industrial replacement parts and products, operating under the NAPA Auto Parts, NAPA Home & Business Solutions, and Worldpac brands. CarParts.com Inc is an American online retailer of aftermarket car parts and accessories, headquartered in Carson, California. O’Reilly Automotive Inc is an American retailer specializing in the sale of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.
– Genuine Parts Co ($NYSE:GPC)
Genuine Parts Co is a distributor of automotive and industrial replacement parts in the U.S., Canada, Mexico, Australasia, and Africa. It operates through the following segments: Automotive, Industrial, Electrical, and Office Products Group. The Automotive segment offers original equipment and aftermarket products for light and heavy duty vehicles. The Industrial segment supplies replacement parts for various industries, including material handling, transportation, construction, food and beverage, and others. The Electrical segment provides replacement parts for the electrical distribution industry. The Office Products Group segment comprises of office products and office furniture. Genuine Parts was founded by Erskine Henderson on May 13, 1928 and is headquartered in Atlanta, GA.
– CarParts.com Inc ($NASDAQ:PRTS)
CarParts.com Inc has a market cap of 301.17M as of 2022, a Return on Equity of 1.06%. The company is an online retailer of automotive parts and accessories. CarParts.com offers a wide range of parts for all makes and models of vehicles.
– O’Reilly Automotive Inc ($NASDAQ:ORLY)
O’Reilly Automotive Inc is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. As of 2022, it had a market cap of 51.63B and a ROE of -159.26%. The company operates through four segments: Retail Stores, Wholesale Parts, Professional Customer and eCommerce. It offers products under the following brands: O’Reilly Auto Parts, AutoZone, Advance Auto Parts, NAPA Auto Parts and Carquest Auto Parts.
Summary
ADVANCE AUTO PARTS reported their second quarter earnings for FY2023 on June 30th, 2023 with a total revenue of USD 2686.1 million, which was a 21.4% decrease from the same period last year. Net income, however, was up 100.1% to USD 85.4 million. This positive news led to the stock price moving up the same day.
This suggests that investors remain confident in the company’s long-term prospects and that the stock is attractive for those looking for a growth investment. Going forward, investors should monitor the company’s sales performance and continue to assess whether it is likely to meet its financial targets.
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