Deep Value: cash covers more than 100% of the stock price

This company holds roughly $3.12B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Stock

Advance Auto Parts

AAP

Specialty Retail · Consumer Cyclical

Also trades as: 0H9G.L GBP 0.46 (+3.54%)

Price

$46.69

+2.17 (+4.87%)

Market Cap

$2.82B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Oct 23, 2026 · filings through Jul 18, 2026

§How the score breaks down

Quality

Mixed

9/30

Growth

Weak

3/20

Cash Flow

Strong

7/10

Stability

Weak

2/10

Valuation

Good

6/10

Ownership

Weak

2/15

Dividends

Mixed

2/5

31 of 100 counted points = Winston Score 31.

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Share count falling — buybacks

−6.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 64.5M (2022) → 60.6M (2026)

§Winston Score History

The full picture

Advance Auto Parts sells car parts, tools, and accessories to everyday drivers and professional mechanics. Its stores carry things like batteries, brakes, oil filters, and engine parts — the kind of items people need when a car breaks down or needs routine maintenance. The company operates thousands of retail locations across the United States, making it one of the largest auto parts retailers in the country.

The company earns money through in-store and online sales, serving both do-it-yourself customers and commercial accounts like repair shops. It competes directly with AutoZone and O'Reilly Automotive, two rivals that have historically been more profitable and operationally efficient. Advance Auto Parts has been working through a turnaround effort after years of underperformance, closing underperforming stores and cutting costs — but with an operating margin of just 3.2% and a low return on invested capital, execution risk remains the central challenge facing the business.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+264.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$3.1B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Advance Auto Parts's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

46.2%

Healthy — 46.2% gross margin

Profit after running costs

Operating Margin

5.1%

Thin — 5.1% operating margin

Return on the money invested

ROCE

4.3%

Weak — 4.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-1.3%

Shrinking sales (-1.3% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

371%

Turns 371% of profit into real cash

Spare cash per sale

FCF Margin

0.3%

Thin free cash flow (0.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

2.31

Heavy debt load (2.31)

Covers its interest

Interest Cover

1.57x

Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

33.5x

Pricey — P/E 33.5

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+23.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (33.5 → 10.1)

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Dividends

Dividend

Dividend Yield

2.25%

Moderate income — 2.25% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+0.0%

Dividend flat

Payout Ratio

71%

no trend

Most of the profit goes out as dividends. Little left to reinvest, and less cushion if earnings dip.

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