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Advance Auto Parts, Inc. (AAP) Stock Grade

AAP · Consumer Cyclical

B
Grade updated: September 29, 2026
Computed by the GradeMyInvestments scoring model from revenue growth, profitability, balance-sheet strength, and analyst targets.
Market Cap
$2.4B
P/E Ratio
52.9
Revenue Growth (YoY)
-5.4%
Net Margin
0.5%
Return on Equity
2.0%
Dividend Yield
2.6%

About Advance Auto Parts, Inc.'s fundamentals

Advance Auto Parts is a specialty retailer with a $2.4 billion market cap that is currently experiencing revenue contraction, declining 5.4% year-over-year. The company operates with a very thin net margin of 0.5%, indicating minimal profitability on each sales dollar, while generating only a 2.0% return on equity. Trading at a P/E ratio of 52.9 suggests the market is pricing in future earnings recovery despite current challenges, though the company does offer a 2.6% dividend yield to shareholders.

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