AAP - Embedded Expectations Analysis - 2020 04 09
Advance Auto Parts, Inc. (AAP:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with a 16.3x Uniform P/E, implying bearish expectations for the firm, and management may be concerned about their 2020 outlook, efficiency, and Speed Perks programSpecifically, management may be concerned about their 2020 outlook, strategic objectives, and potential sales headwinds. In addition, they may lack confidence in their ability to reduce turnover in their distribution centers, sustain improvements in their DIY segment, and maintain their free cash flow. Furthermore, they may be downplaying concerns about weather impacts, and they may be exaggerating their focus on customer experience. Finally, they may lack confidence in their ability to sustain increases in graduation rates up spending tiers and improve the attraction and retention of Speed Perks members
Advance Auto Parts is an automotive aftermarket parts provider in North America, serving both professional installers (Professional), and do-it-yourself (DIY), customers as well as independently owned operators. The company's stores and branches provide a range selection of brand name, original equipment manufacturer and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. Through its integrated operating approach, the company serves its Professional and DIY customers through a variety of channels ranging from brick and mortar store locations to self-service e-commerce sites.
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