Advance Auto Parts Inc (AAP) FinancialsAAPAdvance Auto Parts Inc

Evaluating the bottom line, Advance Auto Parts Inc maintains a gross margin of 44.90%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 4.30%, while the net margin is 2.75%. These profitability ratios, combined with a Return on Equity (ROE) of 4.89%, provide a clear picture of how effectively AAP converts its operational activities into shareholder value.

In the context of the broader market, AAP competes directly with industry leaders such as RH and ABG. With a market capitalization of $2.55B, it holds a significant position in the sector. When comparing efficiency, AAP's gross margin of 44.90% stands against RH's 42.28% and ABG's 16.65%. Such benchmarking helps identify whether Advance Auto Parts Inc is trading at a premium or discount relative to its financial performance.

The company reported a net income of $44 million for FY 2025, despite a revenue decline, showing some profitability amidst challenges. The gross margin has improved to 44.90% in Q2 2026, indicating better cost management.