First Trust Advisors LP Reduces Holdings in Advance Auto Parts, in 2023
March 15, 2023
Trending News ☀️
In 2023, First Trust Advisors LP reduced its holdings in Advance Auto Parts ($NYSE:AAP), Inc., one of the largest retailers of automotive aftermarket parts, supplies, and accessories in the United States. Despite their past success, the company has recently seen their stock holdings decrease. The news of this decrease in holdings has caused a decrease in Advance Auto Parts’ stock price. Industry analysts believe the current stock price is undervalued and if the company’s performance improves, they could see an increase in share price.
Advance Auto Parts has been working to improve their financial performance by cutting costs and increasing their focus on digital sales and e-commerce. While the stock may be undervalued at this time, investors are hopeful that the company’s recent efforts to improve performance will result in an increase in share price.
Market Price
At the time of writing, media coverage for Advance Auto Parts, Inc. has been largely positive. However, on Monday, the stock saw a 2.9% decrease from their previous closing price of 128.0, opening at $126.3 and closing at $124.4. This news may have caused the stock to dip but the long-term impact of this event is yet to be seen. 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 |
| 11.15k | 501.87 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AAP. More…
| Operations | Investing | Financing |
| 722.22 | -424.45 | -620.7 |
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 |
| 12.02k | 9.34k | 45.5 |
Key Ratios Snapshot
Some of the financial key ratios for AAP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 1.8% | 6.3% |
| FCF Margin | ROE | ROA |
| 2.7% | 16.2% | 3.6% |
Analysis
As an investor, it is important to analyze the fundamentals of ADVANCE AUTO PARTS before making any investment decisions. GoodWhale’s Star Chart helps investors identify the type of company they are dealing with. ADVANCE AUTO PARTS is a ‘cow’, a type of company that has the track record of consistently paying out sustainable dividends. This makes ADVANCE AUTO PARTS an attractive proposition for dividend-seeking investors. Additionally, GoodWhale’s fundamentals analysis shows that ADVANCE AUTO PARTS has a high health score of 8/10, indicating its ability to safely ride out any crisis without the risk of bankruptcy. The company is strong in dividend and profitability, and medium in asset. However, ADVANCE AUTO PARTS is weak in terms of growth. This means that ADVANCE AUTO PARTS is suitable for investors who are looking for steady and consistent returns over a long period of time. 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, Inc. (AAP) is a leading automotive parts retailer in the United States. Despite this, media coverage of the stock has remained largely positive. Analysts expect further growth for AAP due to its strong brand recognition, large network of stores and wide range of replacement parts offerings.
Additionally, the company has broadened its online presence and grown its loyalty program membership base. Furthermore, AAP’s financial position remains strong, with cash flow and liquidity that are both above average. In conclusion, AAP is well-positioned for continued growth and could represent an attractive investment opportunity.
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