At a glance
Advance Auto Parts Inc is worth $2.75B, about 63 times its fiscal 2025 earnings. Revenue fell 5.4% to $8.60B in fiscal 2025, with 0.5% kept as profit; over 3 years it has grown 2.0% a year. It pays a 2.19% dividend yield, and returned $2.37B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −18.4% over the past year with dividends reinvested and −25.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 47.2% in the 2020 crash (S&P 500: 33.7%) and 33.7% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Advance Auto Parts sells replacement parts, batteries, accessories and maintenance items, such as brakes, motor oil, filters and wiper blades, for cars, vans, SUVs and trucks. As of January 3, 2026, it ran 4,305 stores, mostly in the US, with others in Canada, Puerto Rico and the US Virgin Islands. Most trade as Advance Auto Parts; 239 trade as Carquest, including 157 in Canada. It also supplies 809 independently owned Carquest stores.
It earns money by buying from more than 730 vendors and reselling at a markup. Gross margin, the share of sales left after paying for the goods, was 43.4% in fiscal 2025. Professional customers, such as garages, service stations and dealerships that get parts delivered, made up about half of sales in each of fiscal 2023 to 2025. It also serves do-it-yourself (DIY) drivers, who shop in stores or online. Shelves mix national brands like Bosch and Mobil 1 with owned brands, such as DieHard, aimed at value-conscious buyers.
The company has shrunk. It sold its Worldpac distribution business in November 2024 for net proceeds of about $1.44 billion, then closed 522 stores and opened 39 in fiscal 2025 under a restructuring plan. Revenue for that 53-week year was $8.6 billion, down 5.4%.
Price history
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AAP -18.4% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jul 18, 2026), revenue was $2.00B, down 0.5% from a year earlier, and net income was $55.0M (+266.7%).
- For fiscal 2025, revenue was $8.60B (-5.4% year over year; -2.0% a year from FY2022 to FY2025) with a 0.5% net margin.
Financial health check
| Revenue growth a year (FY2022–FY2025) | -2.0% weak |
|---|---|
| Operating margin | -0.5% weak |
| Free cash flow margin | -3.5% weak |
| Return on equity (FY2025) | 2% weak |
| Return on assets (FY2025) | 0.4% weak |
| Net cash (cash minus debt) | $-267.0M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $10.11B | $493.0M | $702.1M |
| FY2021 | $11.00B | $596.6M | $817.4M |
| FY2022 | $9.15B | $464.4M | $337.8M |
| FY2023 | $9.21B | $30.0M | $61.0M |
| FY2024 | $9.09B | $-336.0M | $-96.0M |
| FY2025 | $8.60B | $44.0M | $-298.0M |
Valuation snapshot
| Market value | $2.75B |
|---|---|
| P/E ratio | 62.5 |
| Dividend yield | 2.19% |
Rank among 1514 US companies
Market value at each year end
Advance Auto Parts’s market value went from $12.46B at the end of 2016 to $2.75B on Oct 28, 2026, down 78%; since the end of 2025 it is up 17%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.75B | +16.7% |
| 2025 | $2.36B | -16.5% |
| 2024 | $2.82B | -22.2% |
| 2023 | $3.63B | -58.3% |
| 2022 | $8.71B | -41.8% |
| 2021 | $14.96B | +40.0% |
| 2020 | $10.69B | -3.6% |
| 2019 | $11.09B | -3.4% |
| 2018 | $11.48B | +55.8% |
| 2017 | $7.37B | -40.9% |
| 2016 | $12.46B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AAP price data to Oct 28, 2026 | +18.4% | -18.4% | -1.0% | -25.6% | -9.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +18.4% |
| 2025 | -15.0% |
| 2024 | -21.1% |
| 2023 | -57.6% |
| 2022 | -36.5% |
| 2021 | +54.7% |
| 2020 | -0.7% |
| 2019 | +1.9% |
| 2018 | +58.2% |
| 2017 | -40.9% |
| 2016 | +12.5% |
| 2015 | -5.4% |
| 2014 | +44.2% |
| 2013 | +53.4% |
| 2012 | +4.2% |
| 2011 | +5.7% |
| 2010 | +64.1% |
| 2009 | +21.0% |
| 2008 | -10.8% |
| 2007 | +7.5% |
| 2006 | -17.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Gained 4.4% over that stretch · deepest drop along the way 45.7%, back to its old high 6.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 43.8% over that stretch · deepest drop along the way 47.2%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.7% over that stretch · deepest drop along the way 33.7%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.5% | Jun 30, 2025 |
| T. Rowe Price Associates, Inc. | 14% | Jun 30, 2026 |
| PZENA INVESTMENT MANAGEMENT LLC | 8.3% | Sep 30, 2026 |
| COOPER CREEK PARTNERS MANAGEMENT LLC | 7.8% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.06% | Mar 31, 2026 |
| Vanguard Capital Management | 5.24% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 5.1% | Jun 30, 2026 |
| Federated Hermes, Inc. | 5.06% | Mar 31, 2026 |
| Fuller & Thaler Asset Management, Inc. | 4.65% | Dec 31, 2025 |
| FMR LLC | 4.1% | Dec 31, 2024 |
ETFs with the most weight in AAP
| RZV Invesco S&P SmallCap 600® Pure Value ETF | 1.22% |
| TSME Thrivent Small-Mid Cap Equity ETF | 1.02% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 0.73% |
| CVAR Cultivar ETF | 0.53% |
| SLYV SPDR S&P 600 Small Cap Value ETF | 0.34% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.34% |
| IJS iShares S&P Small-Cap 600 Value ETF | 0.33% |
| DFVE DoubleLine Fortune 500 Equal Weight ETF | 0.22% |
What could go wrong
- Turnaround plan may not deliver. Advance is working through a multi-year plan to improve merchandising, its supply chain and store operations. Running many linked projects at once could disrupt the business, cost more than planned or pay off late.
- More restructuring costs still to come. Closures under its 2024 restructuring plan are done, but the company expects $30 million to $40 million more in charges through fiscal 2026, mostly to exit closed-store leases. Costs could run higher.
- Supply chain overhaul could stumble. The company is redesigning its network to run fewer, more productive distribution centers and more market hubs that move parts closer to customers. If the change falters, parts availability and sales could suffer.
- Significant debt and credit-rating risk. As of July 18, 2026, total debt was about $3.4 billion against $3.1 billion of cash and investments. A credit-rating downgrade or tighter credit markets could limit cash for operations and make new financing harder.
- Dividends and buybacks may change. Dividends and buybacks may vary in size and timing. Dividends per share fell from $6 in fiscal 2022 to $1 in fiscal 2024, and buybacks were small in fiscal 2023 and 2024.
- Losing ground to competitors. Advance sells into the auto aftermarket (replacement parts after a vehicle is sold), a highly fragmented industry. If it cannot compete successfully, it could lose customers and market share, and revenue could decline.
Recent events
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Executive or board change
- Quarterly results released
For income and retirement investors
Advance Auto Parts pays a dividend, but its record is uneven. Dividends per share rose from $1 in fiscal 2020 to $6 in fiscal 2022, then fell back to $1 in fiscal 2024 and 2025, so there is no streak of increases. In fiscal 2025 the $60 million paid equaled 136% of earnings, and free cash flow (cash left after running and investing in the business) was negative, so neither covered it. The yield was 2.19% as of October 28, 2026. Buybacks totaled about $1.5 billion over fiscal 2021–2025, mostly in the first two years.
The shares have fallen hard in downturns: about 46% in the 2008 financial crisis, regaining the peak within seven months, and 47% in the 2020 COVID crash, regaining it in under three. After a 34% drop in the 2022 bear market, they had not regained that peak as of October 28, 2026. As a single stock, AAP carries more risk than a diversified fund.
Questions investors ask
How does Advance Auto Parts make money?
Advance Auto Parts makes money by selling replacement parts, batteries, accessories and maintenance items for cars and trucks at a markup. As of January 3, 2026, it ran 4,305 stores, mainly in the US, under the Advance Auto Parts and Carquest names, and supplied 809 independently owned Carquest stores. About half of its sales in fiscal 2025 came from professional customers, such as garages and dealerships that get parts delivered. It also serves do-it-yourself drivers who shop in stores or online.
Did Advance Auto Parts cut its dividend?
Yes. Dividends per share were $6 in fiscal 2022, then fell to $2.25 in fiscal 2023 and $1 in both fiscal 2024 and 2025. The yield was 2.19% as of October 28, 2026. In fiscal 2025 the company paid $60 million in dividends, about 136% of its $44 million of net income, while free cash flow was negative. The company warns that the amount and frequency of dividends may fluctuate.
Is Advance Auto Parts profitable?
Barely. In fiscal 2025, which ended January 3, 2026, the company earned net income of $44 million on $8.6 billion of revenue, a net margin of 0.5%, but had an operating loss (before interest and taxes) of $43 million. That followed a net loss of $336 million in fiscal 2024. Free cash flow was negative $298 million in fiscal 2025. In the quarter ended July 18, 2026, net income was $55 million on revenue of about $2.0 billion.
Why did Advance Auto Parts close so many stores?
To improve profitability and streamline the business. The closures were part of a restructuring plan the board approved on November 13, 2024. In fiscal 2025 the company closed 522 stores and opened 39, ending with 4,305 stores as of January 3, 2026, down from 4,788 at the end of fiscal 2024. The plan also cut jobs and reshaped the organization. The company expects $30 million to $40 million of further charges through fiscal 2026, mostly for exiting leases on closed stores.
How has Advance Auto Parts stock performed?
Poorly over most long periods. As of October 28, 2026, the share price was down about 77% over five years, or 25.6% a year, and down 9.3% a year over 10 years. It fell in every calendar year from 2022 through 2025, including a 57.6% drop in 2023. It had risen 18.4% in 2026 through October 28. In the three years to that date, its deepest fall from a peak was 64.3%.