AAP
🚗 Advance Auto Parts (AAP) is a retailer of automotive parts in the United States that has been affected by supply chain errors and inefficiencies in the store, which has sunk its price.
📉 Unlike its rivals AutoZone and O’Reilly, which have margins close to 20%, AAP is around 1% or less.
📈 The company has a relatively healthy balance sheet, resources to invest in correcting its operating model, and just by slightly improving its margin, approaching the competition, the stock would look very cheap.
@bernardodegarcia:
“Advance Auto Parts. Commonly called AAP, it is a retailer of automotive parts in the United States. Unlike its rivals, AutoZone and O’Reilly, which boast margins close to 20%, AAP is around 1% or less due to errors in the supply chain and inefficiencies in the store. This has sunk its price, as we can clearly see in the chart. The company has a relatively healthy balance sheet, has resources to invest in the correction of its operating model, and just by slightly improving its margin, approaching the competition, the stock would look very cheap. It is an essential segment of the automotive market. Car maintenance and repair remain necessary regardless of the economic situation.”
Watch the exact part of the @bernardodegarcia video where Advance Auto Parts is discussed here:
View the video on YouTube.
Read more articles analyzing Advance Auto Parts (AAP) at the provided link. AAP stock.
