Advance Auto PartsAAP +5.71%69 Gross Margin % is 45.14% as of Mar. 2026, which is 3% above its 10-year median of 43.93. GuruFocus rates AAP with a GF Score™ of 69/100 and a GF Value™ of $52.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Advance Auto Parts ranks better than 90.18% on this metric.
Advance Auto Parts Inc gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for Advance Auto Parts's Gross Margin % or its related term are showing as below:
AAP'
s Gross Margin % Range Over the Past 10 Years
Min: 37.49 Med: 43.93 Max: 46.27
Current: 44.06
During the past 13 years, the highestGross Margin % of Advance Auto Parts was 46.27%. The lowest was 37.49%. And the median was 43.93%.
AAP's Gross Margin % is ranked better than 90.18% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs AAP: 44.06
Advance Auto Parts had a gross margin of 45.14% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Advance Auto Parts was -2.10% per year.
Advance Auto Parts (NYSE:AAP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Advance Auto Parts had a gross margin of 45.14% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Advance Auto Parts Gross Margin % Related Terms
Advance Auto Parts Gross Margin % Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Advance Auto Parts's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advance Auto Parts Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Advance Auto Parts (AAP) has a Gross Margin % of 45.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Advance Auto Parts and its competitors. This is near median its historical median of 43.93. Over the past decade, Advance Auto Parts' Gross Margin % has ranged from 37.49 to 46.27. According to the industry distribution chart, Advance Auto Parts ranks #129 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 9.8%.
Is Advance Auto Parts' Gross Margin % too high?
Advance Auto Parts' current Gross Margin % of 45.14% is near median its 10-year median of 43.93. Over the past 10 years, this metric has ranged from a low of 37.49 to a high of 46.27. The Vehicles & Parts industry median Gross Margin % is 19.84. Advance Auto Parts' value of 45.14% is 127.5% above this industry median. Based on the distribution chart, Advance Auto Parts ranks #129 out of 1313 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Advance Auto Parts has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' Gross Margin % compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #129 out of 1313 companies for Gross Margin %. This places Advance Auto Parts in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. Advance Auto Parts' value of 45.14% is 127.5% above this benchmark. Historically, Advance Auto Parts' own Gross Margin % has ranged from 37.49 to 46.27 over the past decade. While the company's 10-year median is 43.93 vs. the industry median of 19.84, Advance Auto Parts has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current Gross Margin % of 45.14% is 127.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current Gross Margin % is 45.14%, which is near median its own 10-year median of 43.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (AAP) is currently considered Modestly Overvalued. The stock's GF Value™ is $52.12, compared to a current price of $57.94 — trading 11.2% above its estimated fair value. The current Gross Margin % is 45.14%, which is near median its 10-year median of 43.93 and 127.5% above the Vehicles & Parts industry median of 19.84. Advance Auto Parts' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current Gross Margin % is 45.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advance Auto Parts (AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued.
The current stock price of $57.94 is trading 11.2% above its estimated GF Value™ of $52.12.
GuruFocus considers Advance Auto Parts to be Modestly Overvalued.
Key valuation signals for AAP:
Gross Margin %: 45.14% (near median its 10-year median of 43.93)
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 127.5% above the Vehicles & Parts median (#129 of 1313)
No single metric tells the full story. See the AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
69GF Score
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