Advance Story

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AAP -- USA Stock  

USD 149.41  3.98  2.59%

Advance Auto Interest Coverage is very stable at the moment as compared to the past year. Advance Auto reported last year Interest Coverage of 13.15. As of 18th of August 2020, Long Term Debt to Equity is likely to grow to 0.43, while Average Assets are likely to drop about 8.2 B. Today's short post will recap Advance Auto as your potential position. We will focus on the question of why insiders should continue to be confident in Advance Auto outlook.
Published over a month ago
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Our recent forecast of Advance (NYSE:AAP)
Advance Auto is FAIRLY VALUED at 166.18 per share with modest projections ahead. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Advance Auto has an asset utilization ratio of 480.86 percent. This suggests that the company is making $4.81 for each dollar of assets. An increasing asset utilization means that Advance Auto Parts is more efficient with each dollar of assets it utilizes for everyday operations.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Advance Auto Parts. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Advance Auto


How important is Advance Auto's Liquidity

Advance Auto financial leverage refers to using borrowed capital as a funding source to finance Advance Auto Parts ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advance Auto financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Advance Auto's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Advance Auto, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

The recent bullish price patterns experienced by current Advance Auto Parts shareholders could raise concerns from insiders as the firm closed today at a share price of 155.11 on 1,126,186 in volume. The company management teams have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.98. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margin Breakdown

Operating Margin9.31
EBITDA Margin0.1
Gross Margin0.43
Profit Margin0.0477

Will Advance price decline impact its balance sheet?

Recent Information Ratio is up to 0.09. Price may decline again. Advance Auto Parts has relatively low volatility with skewness of -0.05 and kurtosis of 0.24. However, we advise all investors to independently investigate Advance Auto Parts to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Although many other companies under the auto parts stores industry are still a bit expensive, Advance Auto may offer a potential longer-term growth to insiders. In closing, as of the 18th of August 2020, we see that Advance Auto follows the market closely. The firm is fairly valued with low probability of distress within the next 24 months. Our actual 30 days buy-or-sell advice on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Advance Auto Parts. Please refer to our Terms of Use for any information regarding our disclosure principles.

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