Advance Auto Total Debt vs. Book Value Per Share
| AAP Stock | USD 77.22 1.47 1.87% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.36 | 0.4 |
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| Net Profit Margin | 0.032 | 0.0375 |
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| Operating Profit Margin | 0.0574 | 0.0576 |
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| Pretax Profit Margin | 0.0492 | 0.0523 |
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| Return On Assets | 0.0441 | 0.0348 |
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| Return On Equity | 0.14 | 0.16 |
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For Advance Auto profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Advance Auto to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Advance Auto Parts utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Advance Auto's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Advance Auto Parts over time as well as its relative position and ranking within its peers.
Advance |
Is Advance Auto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advance Auto. If investors know Advance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advance Auto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.40) | Dividend Share 2.25 | Earnings Share 0.5 | Revenue Per Share 189.925 | Quarterly Revenue Growth (0) |
The market value of Advance Auto Parts is measured differently than its book value, which is the value of Advance that is recorded on the company's balance sheet. Investors also form their own opinion of Advance Auto's value that differs from its market value or its book value, called intrinsic value, which is Advance Auto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advance Auto's market value can be influenced by many factors that don't directly affect Advance Auto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Advance Auto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Advance Auto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advance Auto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Advance Auto Parts Book Value Per Share vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Advance Auto's current stock value. Our valuation model uses many indicators to compare Advance Auto value to that of its competitors to determine the firm's financial worth. Advance Auto Parts is rated fifth in total debt category among related companies. It is rated second in book value per share category among related companies . The ratio of Total Debt to Book Value Per Share for Advance Auto Parts is about 105,035,144 . At this time, Advance Auto's Book Value Per Share is relatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Advance Auto by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Advance Auto's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Advance Auto's earnings, one of the primary drivers of an investment's value.Advance Total Debt vs. Competition
Advance Auto Parts is rated fifth in total debt category among related companies. Total debt of Consumer Discretionary industry is presently estimated at about 50.14 Billion. Advance Auto holds roughly 4.45 Billion in total debt claiming about 9% of stocks in Consumer Discretionary industry.
Advance Book Value Per Share vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Advance Auto |
| = | 4.45 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Advance Auto |
| = | 42.34 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Advance Book Value Per Share Comparison
Advance Auto is currently under evaluation in book value per share category among related companies.
Advance Auto Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Advance Auto, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Advance Auto will eventually generate negative long term returns. The profitability progress is the general direction of Advance Auto's change in net profit over the period of time. It can combine multiple indicators of Advance Auto, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -52.2 M | -49.6 M | |
| Operating Income | 114.4 M | 108.7 M | |
| Income Before Tax | 31.8 M | 30.3 M | |
| Total Other Income Expense Net | -82.5 M | -78.4 M | |
| Net Income | 29.7 M | 28.2 M | |
| Income Tax Expense | 2.1 M | 2 M | |
| Net Income Applicable To Common Shares | 577.2 M | 362.5 M | |
| Net Income From Continuing Ops | 205.3 M | 195.1 M | |
| Non Operating Income Net Other | 4.5 M | 4.7 M | |
| Interest Income | 49.9 M | 43.1 M | |
| Net Interest Income | -85.9 M | -90.2 M | |
| Change To Netincome | 81.5 M | 60.7 M | |
| Net Income Per Share | 6.93 | 7.27 | |
| Income Quality | 1.30 | 1.33 | |
| Net Income Per E B T | 0.82 | 0.80 |
Advance Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Advance Auto. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Advance Auto position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Advance Auto's important profitability drivers and their relationship over time.
Use Advance Auto in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Advance Auto position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Advance Auto will appreciate offsetting losses from the drop in the long position's value.Advance Auto Pair Trading
Advance Auto Parts Pair Trading Analysis
The ability to find closely correlated positions to Advance Auto could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advance Auto when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Advance Auto - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Advance Auto Parts to buy it.
The correlation of Advance Auto is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Advance Auto moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advance Auto Parts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Advance Auto can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Advance Auto position
In addition to having Advance Auto in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. Note that the Advance Auto Parts information on this page should be used as a complementary analysis to other Advance Auto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Complementary Tools for Advance Stock analysis
When running Advance Auto's price analysis, check to measure Advance Auto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advance Auto is operating at the current time. Most of Advance Auto's value examination focuses on studying past and present price action to predict the probability of Advance Auto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advance Auto's price. Additionally, you may evaluate how the addition of Advance Auto to your portfolios can decrease your overall portfolio volatility.
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To fully project Advance Auto's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Advance Auto Parts at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Advance Auto's income statement, its balance sheet, and the statement of cash flows.