|Price Range 12mo avg:||$625K – $2.5M|
|$/sf 12mo avg:||$188.83|
|CAP Rate 12mo avg:||7.31%|
|Lease Terms:||15yrs NNN|
|Building Size avg:||7,500 SF|
|Lot Size avg:||1+/- acres|
Advance Auto Parts (NYSE: AAP), headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers.
As of September, 2015 Advance now operates 5,297 company-operated stores, 105 Worldpac branches, and services approximately 1,400 independently owned Carquest branded stores in 49 states, Puerto Rico, the Virgin Islands and Canada.
Advance employs approximately 74,000 Team Members.
AAP’s strong financial profile allowed for an all-cash transaction for the acquisition of General Parts International, Inc. (GPII), a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands supports Advance’s commitment to maintaining its investment grade ratings. The transaction created the largest automotive aftermarket parts provider in North America, with annual sales of over $9.3 billion.
Notable Achievements 2008 – Present
- Opened 109 new Advance stores and 18 new Autopart International Stores, bringing the total store count to 3,368.
- Opened 75 new Advance stores and 32 new Autopart International Stores, bringing the total store count to 3420.
- Opened 3500th store in Westerly, Rhode Island
- Awarded full investment-grade status by Standard & Poor’s and Moody’s.
- Secures third consecutive year of double-digit Commercial comparable store sales growth
- Advance Auto Parts celebrates its 10th year as a public company
- Acquired DriverSide and MotoLogic to enhance Advance’s eServices for Commercial Customers
- Opened a new state-of-the-art distribution center in Remington, Indiana offering 20% more Skus and daily replenishment to local Advance Stores
- Acquired 124 B.W.P. Distributors stores, enabling Advance Auto Parts to continue its expansion in the Northeast, which continues to be a strategic growth area for Advance.
- Opened 4,000th store in Montgomery, NY. This new store is located in the Northeast, a key geographic growth area for Advance and part of the Company’s strategy to continue expanding its footprint.
- Celebrated 20 year partnership with JDRF and $35 million dollars raised for diabetes research
- Announced a definitive agreement to acquire General Parts International, Inc. (GPII), a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands, in an all-cash transaction with an enterprise value of $2.04 billion.
- Announced the completion of the acquisition of General Parts International, Inc. (GPII). GPII was a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands.
|S&P Credit Rating:||BBB-|
|Moody’s Credit Rating:||Baa3|
|Annual Revenue 2014:||$9.84B|
|Annual Revenue 2013:||$6.49B|
|Revenue Growth:||↑ 51.6% from 2013|
|Units (Sept. 2015)||6,802|
|Average Units Volume:||$1.8M|
*$82.5M adjusted to $493,825 includes BWP integration costs of $9.0 million and General Parts integration costs of $73.2 million.
Yahoo! Finance: AAP News Latest Financial News for AAP
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There are reasons for investors to be optimistic about Dollar Tree (NASDAQ:DLTR). While the company's 2015 purchase of Family Dollar hasn't quite worked out as expected, new plans to fix that unit, and new initiatives in the legacy business, suggest potential upside in DLTR stock.The catch is that Dollar Tree stock seems already have priced in at least some of that success. Initial FY2020 (ending January 2021) EPS guidance suggests about a 17x forward EPS multiple. That's in line with rival Dollar General (NYSE:DG) -- but that guidance assumes results are going to get better starting in the second half of this year. * 8 Best Stocks to Buy for an April Rally I've long preferred DG to DLTR stock, and at similar valuations, that's still the case. Dollar General is a better operator. Dollar Tree still needs to get to that point -- and even if it does, it doesn't look any cheaper. As as result, I'd like to see Dollar Tree stock a lot cheaper before turning bullish.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Improvement On the Way for DLTR StockDollar Tree clearly overpaid for Family Dollar. Plans to accelerate same-store sales growth at the chain haven't quite worked out. Same-store sales for the Family Dollar banner rose just 0.1% in fiscal 2018, after a 0.4% increase the year before. In contrast, Dollar Tree stores grew comps 3.5% in FY17 and 3.3% last year.Further highlighting the problems, Dollar Tree took a non-cash $2.7 billion goodwill impairment change on the Family Dollar acquisition in Q4. And it's closing as many as 390 stores next year, assuming it can't squeeze rent reductions from landlords. Another 200 stores are being rebranded as Dollar Tree locations.In hindsight, the failed acquisition is bad news. But looking forward, the struggles at Family Dollar represent an opportunity. Any improvement in the chain -- or benefits from the rebranding -- can accelerate growth and boost Dollar Tree's overall prospects.The store closures should help margins. Existing stores are being moved to a new model, known internally as H2. Under the new model, merchandise offerings are improved, including $1 Dollar Tree-branded merchandising. Early tests have been hugely successful, per the Q4 release. The addition of alcohol sales and expanded freezers should help as well. Management expects a 1.5-point boost to comp store sales once the initiatives are fully in place. That's a big number for a chain that has barely grown same-store sales at all of late. Earnings Growth Should Help Dollar Tree StockIt will take some time for the efforts to bear fruit. Management actually is guiding for operating income to decline year-over-year in the first half before an improvement in the second half. Full-year adjusted EPS is expected to slip, in part due to a higher tax rate. * The Elite 8 Stocks to Buy for Massive Outperformance But in fiscal 2020, Dollar Tree expects earnings growth to accelerate markedly, with initial guidance for a 14-18% EPS increase. That suggests something in the range of $6.20 per share -- and a roughly 17x forward P/E multiple for DLTR stock.Against mid-teens earnings per share growth, that figure seems cheap. And there are potentially levers to pull beyond remodeling and rebranding Family Dollar stores. Management is testing price points beyond the $1 figure, a suggestion made by activist Starboard Value. Starboard has had some big wins in recent years -- among them Advance Auto Parts (NYSE:AAP) and Olive Garden owner Darden Restaurants (NYSE:DRI) -- and DLTR could benefit from its expertise in targeting consumers.Family Dollar's multi-year disappointment suggests a revitalized business could have years of growth ahead of it. And Dollar Tree has managed to do well despite strength at Walmart (NYSE:WMT), which hasn't always been the case.There is good news here along with room for more good news. In that context, the 17x forward EPS multiple for DLTR stock might look cheap. Is DG Still The Better Play?That said, Dollar General stock trades at a roughly similar forward multiple. And it's worth noting that there's quite a bit of uncertainty to Dollar Tree's FY20 guidance. The company is projecting a big uptick in comps from the H2 model and other initiatives. That uptick isn't guaranteed - and neither is the 14-18% growth management sees coming next year.In contrast, DG investors can pay roughly the same multiple for steadier, and probably more certain, performance, with a two-year growth rate that actually looks a bit stronger.Admittedly, investor preferences might be different among the two stocks. Dollar Tree stock, given Starboard's presence and the efforts at Family Dollar, likely has more upside in the best-case scenario. It also has higher risk.From here, DG is the steadier, safer, and better bet. But others might see it differently - and Dollar Tree has enough options to prove me, and other DLTR stock skeptics, wrong.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: A Close Race at the Front * 15 Stocks to Buy Leading the Financial Charge * 7 Stocks From Around the World That Beat U.S. Stocks Compare Brokers The post Potential for Improvement Seems Already Priced Into Dollar Tree Stock appeared first on InvestorPlace. […]