Professional
Added to YB: 2024-07-16
Pitch date: 2024-07-13
AAP [bullish]
Advance Auto Parts, Inc.
-7.38%
current return
Author Info
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
$60.44
Price Target
N/A
Dividend
1.76%
EV/EBITDA
5.30
P/E
50.21
EV/Sales
0.69
Sector
Specialty Retail
Category
turnaround
Advance Auto Parts: Will this Turnaround Finally Turn?
AAP: Underperforming vs peers (O'Reilly, AutoZone) despite similar industry. New CEO/CFO, activists involved. Turnaround plan: divest Worldpac (~$2B), improve working capital (potential $500M release), consolidate supply chain, boost margins. If successful, 25%+ annual returns possible. Risks: historical execution issues. Upside from closing gap to peers.
Read full article (10 min)