Added to YB: 2026-02-20
Pitch date: 2026-02-19
AAP [neutral]
Advance Auto Parts, Inc.
Author Info
DeepValue Capital is investing in quality turnaround companies. 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
N/A
Price Target
113.00 (+102%)
Dividend
1.76%
EV/EBITDA
5.30
P/E
50.21
EV/Sales
0.69
Sector
Specialty Retail
Category
growth
DV Capital | Earnings Update $AAP
AAP (earnings): Mismanaged auto parts retailer turned around by supply chain expert Shane O'Kelly. 2025: +0.8% comp sales (Pro +4% Q4, DIY weak), gross margins +165bps, op margins +210bps. Closed 700 stores, added 100K SKUs, cut delivery time 10+ min. 2026: 1-2% comp growth, op margins +130-200bps, FCF turn positive to $100M. DIY weakness from consumer softness should improve on tax refunds/cuts. Mid-2028 PT: $113 (34% CAGR).
Read full article (3 min)