Stock Updates

Is this Large Market Cap Stock target price reasonable for Advance Auto Parts Inc. (NYSE:AAP)?

The company in question is, Advance Auto Parts Inc. (NYSE:AAP) currently with a stock price of 157.43 (-0.39% today). The market cap for Advance Auto Parts Inc. is 11675.15, and is in the sector Services, and Auto Parts Stores industry. The target price for Advance Auto Parts Inc. is 160.06. Currently Advance Auto Parts Inc. is trading with a P/E of 24.17, and a forward P/E of 18.03. Average volume for Advance Auto Parts Inc. is 1197.72 and so far today it is 881052.

Performance in the last year for Advance Auto Parts Inc. has been -14.79%. For EPS growth, Advance Auto Parts Inc. has seen a growth of -4.60%, and is looking to grow in the next year to 11.60%. More long term stats show that EPS growth has been 10.10% over the last five years and could be 10.74% for the next five years. Advance Auto Parts Inc. has seen sales growth quarter over quarter at -1.90%, with EPS growth quarter over quarter at 6.90%. The 20-day simple moving average is -2.75%, with the 200-day simple moving average coming to 0.31%.

Since the IPO date for Advance Auto Parts Inc. on the 11/29/2001, Advance Auto Parts Inc. has seen performance year to date to be 5.09%. With Advance Auto Parts Inc. trading at 157.43, the dividend yield is 0.15%, and the EPS is 6.54.

So could Advance Auto Parts Inc., be undervalued? Well as said before P/E is 24.17. The PEG is 2.25, P/S is 1.21 and the P/B is at 4.41. The P/cash is 112.59, with P/free cash flow at 30.87.

Advance Auto Parts Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 0.2. This is with long term debt/equity at 0.47, and total debt/equity at 0.47.

In terms of margins, Advance Auto Parts Inc. has a gross margin of 45.20%, an operating margin of 8.60% and a profit margin of 5.00%.Payout ratio for Advance Auto Parts Inc. is 3.60%. Return on assets come to 5.90% with return on investment coming to 14.90%.

Insider ownership for Advance Auto Parts Inc., is at 0.40% and institutional ownership comes to 93.30%. Outstanding shares are at 73.87. While shares float is 73.15. The float short is currently 6.66%, and short ratio is 4.07.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

Leave a Comment