AAP Stock Fair Value Calculation – SG Americas Securities LLC Increases Stake in Advance Auto Parts, in Q1
July 29, 2023
☀️Trending News
SG Americas Securities LLC has made a major statement with its recent investment in Advance Auto Parts ($NYSE:AAP), Inc. during the first quarter. This renowned financial institution increased its stake significantly in the leading automotive parts retailer. It also provides maintenance items, accessories, batteries, and engine parts, all of which are designed to help DIY customers and professional technicians repair and maintain their vehicles.
Advance Auto Parts’ stock continues to be highly sought-after in the markets, and SG Americas Securities LLC has taken advantage of this by increasing its stake in the company. This decision further cements Advance Auto Parts’ position as a leader in the automotive retail space.
Price History
On Friday, Advance Auto Parts stock opened at $73.7 and closed at $73.2, representing a 0.7% increase from the prior closing price of 72.6. 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 |
| 11.2k | 404.73 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AAP. More…
| Operations | Investing | Financing |
| 398.3 | -400.09 | 78.69 |
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 |
| 12.18k | 9.55k | 45.06 |
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% | -2.1% | 5.3% |
| FCF Margin | ROE | ROA |
| -0.0% | 13.8% | 3.0% |
Analysis – AAP Stock Fair Value Calculation
GoodWhale has conducted an analysis of ADVANCE AUTO PARTS’s wellbeing and determined that its fair value is around $209.2, calculated by our proprietary Valuation Line. This means that the current market price of $73.2 is significantly undervalued by 65.0%. This presents an excellent opportunity for investors looking to buy into a company with strong fundamentals and a generous margin of safety. Our analysis indicates that ADVANCE AUTO PARTS is well-positioned for long-term success, and we believe investing today could result in significant returns over the long-term. More…
Peers
Advance Auto Parts Inc is an American automotive aftermarket parts retailer. Headquartered in Roanoke, Virginia, Advance Auto Parts has over 5,200 stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates under the Advance Auto Parts, Advance Discount Auto Parts, and Auto World names. Genuine Parts Co is an American service organization engaged in the distribution of automotive and industrial replacement parts and products, operating under the NAPA Auto Parts, NAPA Home & Business Solutions, and Worldpac brands. CarParts.com Inc is an American online retailer of aftermarket car parts and accessories, headquartered in Carson, California. O’Reilly Automotive Inc is an American retailer specializing in the sale of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States.
– Genuine Parts Co ($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
This activity is indicative of the potential this company holds for investors. The stock has seen a substantial increase in its price, and analysts are bullish on its prospects for the future. With the growing demand for automotive parts due to the shifting and expanding economy, Advance Auto Parts, Inc. is poised to benefit. Analysts recommend investors to keep a close eye on this company’s performance and consider investing in it to reap its benefits.
