Added to YB: 2024-09-09
Pitch date: 2024-09-06
AAP [bullish]
Advance Auto Parts, Inc.
+45.86%
current return
Author Info
Hidden Rock Capital is an investment advisor unearthing asymmetric investment opportunities hiding in plain sight. Sign up for the newsletter.
Company Info
Advance Auto Parts, Inc. provides automotive aftermarket parts. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; 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.
Market Cap
$3.4B
Pitch Price
$38.38
Price Target
100.00 (+79%)
Dividend
1.76%
EV/EBITDA
5.30
P/E
50.21
EV/Sales
0.69
Sector
Specialty Retail
Category
turnaround
Revving up for Advance Auto Parts
AAP: New CEO O'Kelly targeting turnaround via Worldpac sale ($1.2B), Carquest divestment, inventory system optimization. $100M FCF (1% margin) guided for 2024; potential 5-6% FCF margin = $500-600M. At 10x FCF, $80-100/share PT (vs $40 current). Activists involved. Risks: execution, competition from AZO/ORLY. 18-month timeframe.
Read full article (3 min)