| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 34.0x | 17.3x | Top tier | |
Growth | 30 | -1.3% | 7.1% | Bottom tier | |
Quality | 39 | 3.9% | 4.5% | Bottom tier | |
Safety | 45 | 4.4x | 2.6x | Around median | |
Capital Return | 37 | 2.14% | 0.06% | Bottom tier | |
Momentum | 40 | -22.7% | -1.6% | Around median | |
Sentiment | 72 | 17 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
20% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Advance Auto Parts operates a network selling automotive parts and aftermarket services through two main channels: the Pro channel, aimed at repair shops and professional customers, and the DIY channel, aimed at individuals who purchase parts and perform maintenance themselves. The business relies on selling categories such as batteries, motor oils, filters, brakes, and suspension-system parts, while expanding the assortment by adding approximately 80 thousand SKUs during the first half of fiscal year 2026 after adding 100 thousand SKUs in the previous year. The company also uses Market Hub centers to increase same-day parts availability, and programs such as TechNet, MotoVisuals, MotoLogic, and the Own The Mile service to strengthen its relationship with Main Street Pro customers.
In quarter 2 of fiscal year 2026, revenue reached $2.0 billion, gross profit according to EDGAR filings was approximately $923 million, net income was $55 million, and earnings per share were $0.90. On an adjusted basis, gross profit reached $924 million, equivalent to a gross margin of 46.2%, while adjusted operating income was $112 million with a margin of 5.6%, and adjusted earnings per share reached $1.03 versus $0.69 in the corresponding period.
The sales mix was uneven in quarter 2 of fiscal year 2026; the Pro channel achieved low-single-digit growth, and Main Street Pro sales outperformed the overall Pro channel by more than 200 basis points, but DIY sales declined by a low-single-digit percentage and offset the strength of the professional channel. For fiscal year 2026, the company recorded revenue of $8.6 billion, gross profit of $3.7 billion, net income of $44 million, and earnings per share of $0.73, highlighting that the quarterly improvement in profitability is part of a transformation path that still needs to prove sustainable.
The analysts’ average price target is $51.69, within a wide range of $45 to $65, and it is near the midpoint of the 52-week range of $37.89–$65.21 and approximately 21% below its peak. The “Neutral” consensus reflects a balance between improving margins and cash flow on one hand, and the DIY decline and the reliance of part of the margin expansion on nonrecurring recoveries on the other; no valid price-to-earnings ratio is available in the provided data as a basis for valuation.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Advance Auto Parts generated revenue of approximately $2.0 billion, with gross profit of $923 million according to EDGAR and net income of $55 million. On an adjusted basis, gross margin reached 46.2%, operating margin reached 5.6%, and earnings per share reached $1.03. The Pro channel supported results with low-single-digit growth, but a low-single-digit percentage decline in DIY led to a slight decrease in comparable sales. Tariff recoveries of $26 million also added approximately 130 basis points to gross-margin expansion.
The company said on its August 20, 2026 call that constrained household budgets prompted customers to reduce spending and postpone high-value maintenance projects. DIY sales were approximately flat during the first eight weeks of quarter 2 of fiscal year 2026, then slowed noticeably during the final four weeks. Mild summer weather also hurt weather-sensitive categories such as cooling, climate control, fluids, and chemicals. Management estimated the combined impact of these factors on comparable sales at approximately 100–150 basis points.
Automated analysis for informational purposes only — not investment advice.
The Pro channel achieved low-single-digit growth in quarter 2 of fiscal year 2026, while Main Street Pro growth exceeded overall Pro growth by more than 200 basis points. The company supports this channel through TechNet, MotoVisuals, MotoLogic, credit programs, and tools, along with the Own The Mile service aimed at repair shops near stores. Average Pro order delivery time remained below 40 minutes, and Market Hubs help bring 70–80 thousand SKUs closer to customers. The company targets Market Hubs serving approximately 70% of stores by the end of fiscal year 2026.
The plan relies on merchandising, supply chain, and store operations, with a medium-term target of a 7% adjusted operating margin. Merchandising initiatives have added approximately 100 basis points to product margin year to date in fiscal year 2026, and the new pricing framework for the DIY and Pro channels is expected to be completed by year-end. The company also reduced its distribution network from approximately 40 centers to 15 centers under a unified system and completed 25% of the identified process improvements. The transportation contract rebid is intended to reduce the number of carriers by 70% and achieve tens of millions of dollars in savings in 2027.
The company expects revenue of approximately $8.5 billion and comparable-sales growth between 1% and 2%. It maintained its adjusted operating margin range at 3.8%–4.5% and raised its adjusted earnings per share range to $2.60–$3.30. It also expects free cash flow of approximately $100 million and capital expenditures of approximately $300 million. The plan includes opening 30–35 stores and 15–20 Market Hub centers during fiscal year 2026.
The company generated free cash flow of $120 million year to date in fiscal year 2026, compared with an outflow of $201 million in the corresponding period. It ended quarter 2 with a cash balance of approximately $3.1 billion and used approximately $30 million to repurchase a portion of its 2028 notes. Net leverage declined to 2.1 times from 2.4 times in the previous quarter, within the target range of 2.0–2.5 times. However, management explained that returning to investment-grade status remains a multi-notch path, with the company approximately three notches away at Moody’s and two notches away at S&P.