AAP

Advance Auto Parts Inc

Consumer, Industrial/Transportation


Presented:10/19/2015
Price:$193.59
Cap:$14.26B
Current Price:$39.47
Cap:$2.36B

Presented

Date10/19/2015
Price$193.59
Market Cap$14.26B
Ent Value$13.84B
P/E Ratio28.3x
Book Value$31.27
Div Yield0%
Shares O/S73.68M
Ave Daily Vol979,385
Short Int4.81%

Current

Price$39.47
Market Cap$2.36B
Advance Auto Parts, Inc. is a retailer of automotive aftermarket parts, accessories, batteries and maintenance items. Its stores carry an extensive product line for cars, vans; sport utility vehicles and light trucks. The company operates through two segments: Advance Auto Parts and Autopart International. The Advance Auto Parts segment is comprised of its store operations within the Northeastern, Mid-Atlantic, Southeastern and Midwestern regions of the United States, Puerto Rico and the Virgin Islands, which operate under the trade names Advance Auto Parts, Advance Discount Auto Parts and Western Auto. The Autopart International segment serves the commercial market for imported cars from its store locations in the Northeastern and Mid-Atlantic regions of the U.S. and Florida. The company was founded by Arthur Taubman in 1929 and is headquartered in Roanoke, VA.

Please note, this idea was updated on 11/24/2015 and can be read here: Long - Advance Auto Parts, Inc. (AAP).
Publicly traded companies mentioned herein: Advance Auto Parts Inc (AAP), AutoZone Inc (AZO), O'Reilly Automotive Inc (ORLY)

Highlights

Despite shares of Advance Auto Parts being right at a 52 week high (~$193) the presenter advocated allocating capital to an investment in the automotive aftermarket player. He sees a favorable risk/ reward for investors in the stock and said it has actually underperformed its peers (AutoZone and O’Reilly) over the past few years. The tailwind from auto sales (as measured by recent SAAR trends) and the aging fleet are big drivers of his optimism, but shares are also cheap at 20x 2016 Street estimates, Starboard is now involved, and “any retail business that can grow the top line with relatively high visibility and expand margins over the next three to five years should have upside.”

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Idea Discussion

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