Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Advance Auto Parts's 5-Year RORE % for the quarter that ended in Mar. 2026 was 377.17%.
The industry rank for Advance Auto Parts's 5-Year RORE % or its related term are showing as below:
AAP's 5-Year RORE % is ranked better than 97.59% of 1162
companies
in the Vehicles & Parts industry
Industry Median: 8.86
vs AAP: 377.17
Advance Auto Parts (NYSE:AAP) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Advance Auto Parts 5-Year RORE % Related Terms
Advance Auto Parts 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Advance Auto Parts (AAP) has a 5-Year RORE % of 377.17 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Advance Auto Parts and its competitors. According to the industry distribution chart, Advance Auto Parts ranks #28 out of 1162 companies in the Vehicles & Parts industry, placing it in the top 2.4%.
Is Advance Auto Parts' 5-Year RORE % too high?
Advance Auto Parts' current 5-Year RORE % is 377.17. The Vehicles & Parts industry median 5-Year RORE % is 8.86. Advance Auto Parts' value of 377.17 is 4157% above this industry median. Based on the distribution chart, Advance Auto Parts ranks #28 out of 1162 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' 5-Year RORE % compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #28 out of 1162 companies for 5-Year RORE %. This places Advance Auto Parts in the top 2% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 8.86. Advance Auto Parts' value of 377.17 is 4157% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Vehicles & Parts company?
The median 5-Year RORE % among Vehicles & Parts companies is 8.86, based on 1,162 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current 5-Year RORE % of 377.17 is 4157% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median 5-Year RORE % is 8.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current 5-Year RORE % is 377.17. 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 5-Year RORE % is 377.17 and 4157% above the Vehicles & Parts industry median of 8.86. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current 5-Year RORE % is 377.17 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:
5-Year RORE %: 377.17
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 4157% above the Vehicles & Parts median (#28 of 1162)
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
Get the complete analysis for AAP
5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
AAP has been successfully added to your 
