Advance Story

AAP -- USA Stock

USD 164.84 2.18 1.34%

Macroaxis Story

Advance Auto Accounts Payable Turnover is very stable at the moment as compared to the past year. Advance Auto reported last year Accounts Payable Turnover of 3.51. As of 16th of February 2021, Operating Margin is likely to grow to 9.96, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop about 1.2 B. As some conservative investors are getting more into consumer cyclical space, Advance Auto Parts could be a your radar. We will evaluate why recent Advance Auto price moves suggest a bounce in March. Here I will also recap some basic indicators that the entity investors should consider in March.

Published over a week ago

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What are the odds of Advance Auto declining in March?

Advance Auto Parts is fairly valued at 150.45 per share with modest projections ahead. Advance Auto has performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.1667, which signifies not very significant fluctuations relative to the market. Let's try to break down what Advance's beta means in this case. As returns on the market increase, returns on owning Advance Auto are expected to decrease at a much lower rate. During the bear market, Advance Auto is likely to outperform the market. Although it is extremely important to respect Advance Auto Parts historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Advance Auto Parts technical indicators, you can presently evaluate if the expected return of 0.0712% will be sustainable into the future. Advance Auto Parts right now shows a risk of 1.96%. Please confirm Advance Auto Parts variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Advance Auto Parts will be following its price patterns.

And What about dividends?

A dividend is the distribution of a portion of Advance Auto earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Advance Auto dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Advance one year expected dividend income is about $0.33 per share.

As of 2nd of March 2021, Payment of Dividends and Other Cash Distributions is likely to grow to about (39 M). In addition to that, Dividend Yield is likely to drop to 0.003684.

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-56.3 M	-39 M
Dividend Yield	0.006	0.003684
Dividends per Basic Common Share	1.00	0.65

Investing in dividend-paying stocks, such as Advance Auto Parts is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Advance Auto must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Advance Auto. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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

What did Advance Auto file with SEC?

The SEC filings are financial statements or other formal documents of Advance Auto Parts that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.

Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Advance shareholders may or may not be submitted as SEC does not always require it.

	16th of February 2021 Financial Statements and Exhibits. Unclassified Corporate Event. Results of Operations and Financial Condition	View
	11th of February 2021 Unclassified Corporate Event	View

Breaking it down a bit more

Advance Auto holds a total of sixty-seven million eight hundred fifty thousand outstanding shares. The majority of Advance Auto Parts outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Advance Auto Parts to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Advance Auto. Please pay attention to any change in the institutional holdings of Advance Auto Parts as this could imply that something significant has changed or about to change at the company. Also note that nearly two million thirty-five thousand five hundred invesors are currently shorting Advance Auto expressing very little confidence in its future performance.

	2016	2017	2020	2021 (projected)
Consolidated Income	459.62 M	486.9 M	528.57 M	529.06 M
Direct Expenses	5.31 B	5.45 B	4.78 B	4.33 B

Consolidated Income Direct Expenses

Ownership Breakdown

Institutions

102.28%

	Retail Investors	-2.65
	Insiders	0.37
	Institutions	102.28

Another small decline for Advance Auto

Kurtosis is down to 1.79. It may hint at a possible volatility decline. As of the 16th of February 2021, Advance Auto shows the risk adjusted performance of (0.001117), and Mean Deviation of 1.41. Advance Auto Parts technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Advance Auto Parts, which can be compared to its rivals. Please confirm Advance Auto Parts variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Advance Auto Parts is priced correctly, providing market reflects its regular price of 152.81 per share. Given that Advance Auto has jensen alpha of (0.01547), we suggest you to validate Advance Auto Parts's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Advance Auto

Although other companies in the specialty retail industry are either recovering or due for a correction, Advance Auto may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the recent economy, it is better to hold off any trading of Advance as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Advance Auto.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

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 Achuva Shats 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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