Advance Stock Story

AAP

Stock

USD 209.60 4.27 2.08%

Macroaxis Story

Advance Auto Receivables Turnover is very stable at the moment as compared to the past year. Advance Auto reported last year Receivables Turnover of 15.49. As of 22nd of May 2022, Inventory Turnover is likely to grow to 1.47, while Average Assets are likely to drop about 10.7 B. While many traders today are more concerned about the preservation of capital over market returns, Advance Auto Parts could be one exception. We will evaluate why we are still optimistic in anticipation of a recovery. Here I will also expose some primary fundamental factors affecting Advance Auto's services, and outline how it will impact the outlook for investors this year.

Published over two months ago

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Is Advance Auto (NYSE:AAP) ripping up insiders?

Advance Auto Parts reported the last year's revenue of 11 B. Total Income to common stockholders was 616.11 M with profit before taxes, overhead, and interest of 4.93 B. The company has Net Profit Margin of 5.6 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 10.56 %, which entails that for every 100 dollars of revenue, it generated 0.11 of operating income.

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 $2.17 per share.

As of 16th of August 2022, Payment of Dividends and Other Cash Distributions is likely to grow to about (94 M). In addition to that, Dividend Yield is likely to drop to 0.007895.

	Last Reported	Projected for 2022
Payment of Dividends and Other Cash Distributions	-160.9 M	-94 M
Dividend Yield	0.014	0.007895
Dividends per Basic Common Share	3.25	1.84

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.

	24th of May 2022 Financial Statements and Exhibits. Submission of Matters to a Vote of Security Holders	View
	10th of February 2022 Unclassified Corporate Event	View

Breaking down Advance Auto Indicators

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 559.73 percent. This suggests that the company is making $5.6 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.

Is Advance Auto getting woozy?

Value At Risk just dropped to -5.5, may hint at upcoming price depreciation. Advance Auto Parts exhibits very low volatility with skewness of -1.21 and kurtosis of 2.25. However, we advise investors to further study Advance Auto Parts technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Advance Auto's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Advance Auto's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Advance Auto Implied Volatility

Advance Auto's implied volatility exposes the market's sentiment of Advance Auto Parts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Advance Auto's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Advance Auto stock will not fluctuate a lot when Advance Auto's options are near their expiration.

Our Bottom Line On Advance Auto Parts

Although few other entities in the specialty retail industry are either recovering or due for a correction, Advance may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Advance nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik 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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