Advance Auto PartsAAP +5.71%69 ROE % is 4.35% as of Mar. 2026, which is 68% below its 10-year median of 13.80. 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 1,308 Vehicles & Parts companies, Advance Auto Parts ranks worse than 70.41% on this metric.
The historical rank and industry rank for Advance Auto Parts's ROE % or its related term are showing as below:
AAP'
s ROE % Range Over the Past 10 Years
Min: -14.33 Med: 13.8 Max: 17.84
Current: 2
During the past 13 years, Advance Auto Parts's highest ROE % was 17.84%. The lowest was -14.33%. And the median was 13.80%.
AAP's ROE % is ranked worse than 70.41% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs AAP: 2.00
Advance Auto Parts (NYSE:AAP) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Advance Auto Parts ROE % Related Terms
Advance Auto Parts ROE % Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's ROE % distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Advance Auto Parts (AAP) has a ROE % of 4.35% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Advance Auto Parts and its competitors. This is 68% below median its historical median of 13.80. According to the industry distribution chart, Advance Auto Parts ranks #921 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 70.4%.
Is Advance Auto Parts' ROE % too high?
Advance Auto Parts' current ROE % of 4.35% is 68% below median its 10-year median of 13.80. The Vehicles & Parts industry median ROE % is 6.62. Advance Auto Parts' value of 4.35% is 34.3% below this industry median. Based on the distribution chart, Advance Auto Parts ranks #921 out of 1308 companies in the Vehicles & Parts industry, which is below the industry midpoint. 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' ROE % compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #921 out of 1308 companies for ROE %. This places Advance Auto Parts in the lower half of its industry. The industry median ROE % is 6.62. Advance Auto Parts' value of 4.35% is 34.3% below this benchmark. While the company's 10-year median is 13.80 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current ROE % of 4.35% is 34.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current ROE % is 4.35%, which is 68% below median its own 10-year median of 13.80. 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 ROE % is 4.35%, which is 68% below median its 10-year median of 13.80 and 34.3% below the Vehicles & Parts industry median of 6.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current ROE % is 4.35% 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:
ROE %: 4.35% (68% below median its 10-year median of 13.80)
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 34.3% below the Vehicles & Parts median (#921 of 1308)
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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