Advance Auto PartsAAP +5.71%69 Interest Coverage is 1.55 as of Mar. 2026, which is 85% below its 10-year median of 10.68. 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 1,066 Vehicles & Parts companies, Advance Auto Parts ranks worse than 87.05% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Advance Auto Parts's
Operating Income
for the
three
months ended in Mar. 2026 was $101 Mil. Advance Auto Parts's Interest Expense for the
three
months ended in Mar. 2026 was $-65 Mil.
Advance Auto Parts's interest coverage for the quarter that ended in Mar. 2026 was 1.55.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Advance Auto Parts's Interest Coverage or its related term are showing as below:
AAP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.63 Med: 10.68 Max: 21.76
Current: 1.55
AAP's Interest Coverage is ranked worse than 87.05% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs AAP: 1.55
Advance Auto Parts (NYSE:AAP) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Advance Auto Parts Interest Coverage Related Terms
Advance Auto Parts Interest Coverage Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
AAP vs DORM, ATMU, DAN: Interest Coverage Comparison
For the Auto Parts subindustry, Advance Auto Parts's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Advance Auto Parts (AAP) has a Interest Coverage of 1.55 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advance Auto Parts and its competitors. This is 85% below median its historical median of 10.68. Over the past decade, Advance Auto Parts' Interest Coverage has ranged from 0.63 to 21.76. According to the industry distribution chart, Advance Auto Parts ranks #928 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 87.1%.
Is Advance Auto Parts' Interest Coverage too high?
Advance Auto Parts' current Interest Coverage of 1.55 is 85% below median its 10-year median of 10.68. Over the past 10 years, this metric has ranged from a low of 0.63 to a high of 21.76. The Vehicles & Parts industry median Interest Coverage is 8.30. Advance Auto Parts' value of 1.55 is 81.3% below this industry median. Based on the distribution chart, Advance Auto Parts ranks #928 out of 1066 companies in the Vehicles & Parts industry, which is in the bottom quartile 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' Interest Coverage compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #928 out of 1066 companies for Interest Coverage. This places Advance Auto Parts in the lower half of its industry. The industry median Interest Coverage is 8.30. Advance Auto Parts' value of 1.55 is 81.3% below this benchmark. Historically, Advance Auto Parts' own Interest Coverage has ranged from 0.63 to 21.76 over the past decade. While the company's 10-year median is 10.68 vs. the industry median of 8.30, Advance Auto Parts has consistently been below 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 Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current Interest Coverage of 1.55 is 81.3% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current Interest Coverage is 1.55, which is 85% below median its own 10-year median of 10.68. 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 Interest Coverage is 1.55, which is 85% below median its 10-year median of 10.68 and 81.3% below the Vehicles & Parts industry median of 8.30. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current Interest Coverage is 1.55 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:
Interest Coverage: 1.55 (85% below median its 10-year median of 10.68)
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 81.3% below the Vehicles & Parts median (#928 of 1066)
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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