Markets

Advance Auto Parts Director Buys 4……,……… Shares

Advance Auto Parts Inc. ( AAP ) Director Jeffrey C. Smith purchased 4……,……… shares of the company's stock at an average price of $-55.68 on May '-. The $6- million transaction came after Smith made an initial purchase of -5…,……… shares at an average price of $-5-.7' six days earlier.

Incorporated in Delaware August -……-, Advance Auto Parts specializes in automotive parts ranging from car batteries and other accessories to various aftermarket auto parts. The company currently has a financial strength of 8 out of -…, suggesting a healthy financial system and high chance of survival. With an Altman Z-score of '.-', Advance Auto Parts is not likely to go bankrupt in the near future.

CMG 15-Year Financial Data

The intrinsic value of CMG

Peter Lynch Chart of CMG

Warning! GuruFocus has detected 1 Warning Sign with BAC. Click here to check it out.

BAC 15-Year Financial Data

The intrinsic value of BAC

Peter Lynch Chart of BAC

Warning! GuruFocus has detected 4 Warning Signs with AAP. Click here to check it out.

AAP 15-Year Financial Data

The intrinsic value of AAP

Peter Lynch Chart of AAP

-4648-5'6-98-.png

Compared to competing firms in the global specialty retail industry, Advance Auto Parts has a profitability and growth rating of 8 out of -…. The company has the lowest P/S ratio among its competition; furthermore, the current P/S ratio of -.-8, which is near one-year lows, is lower than 68% of all global specialty retail firms. Other valuation ratios are relatively low: the firm has P/E ratios near one-year lows and P/B ratios near five-year lows.

7-9-…979-.png

Two major rival firms of Advance Auto Parts have strong financial outlooks as well: O'Reilly Automotive Inc. ( ORLY ) and AutoZone Inc. ( AZO ). Both of these firms have a profitability and growth rating of 9 out of -… despite having a lower financial strength rating than Advance Auto Parts. The above chart summarizes the five-year P/S ratios of the three companies. Throughout the five-year period, Advance Auto Parts had the lowest P/S ratio.

Advance Auto Parts had lower Altman Z-scores and Piotroski F-scores than its rivals during the past five years. Although this suggests that Advance Auto Parts has slightly weaker financials than its peers, Advance Auto Parts still has higher financial strength, probably because it has a higher equity-to-asset ratio.

-99977…55-.png

Despite having higher equity-to-asset ratios over the past five years, O'Reilly had decreasing equity-to-asset ratios year over year. Currently, O'Reilly has a lower equity-to-asset ratio than Advance Auto Parts, suggesting that O'Reilly has higher long-term debt. In case the auto retail industry experiences a major downturn, O'Reilly has a slightly higher chance of going into bankrupt due to its higher leverage.

See more insider buys on GuruFocus.com. You can also look at guru and insider double buys, CEO and chief financial officer buys, and triple buys.

Start a free seven-day trial of Premium Membership to GuruFocus.

About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ORLY AZO AAP

Other Topics

Stocks