Advance Auto PartsAAP +5.71%69 Altman Z-Score is 1.84 as of Jun. 24, 2026, which is 26% below its 10-year median of 2.49. 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 worse than 68.32% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 1.83 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Advance Auto Parts has a Altman Z-Score of 1.84, indicating it is in Grey Zones. This implies that Advance Auto Parts is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Advance Auto Parts's Altman Z-Score or its related term are showing as below:
AAP'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.44 Med: 2.49 Max: 3.49
Current: 1.83
During the past 13 years, Advance Auto Parts's highest Altman Z-Score was 3.49. The lowest was 1.44. And the median was 2.49.
Advance Auto Parts (NYSE:AAP) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Advance Auto Parts Altman Z-Score Related Terms
Advance Auto Parts Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's Altman Z-Score 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Advance Auto Parts's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.2707
+
1.4
*
0.3521
+
3.3
*
0.0214
+
0.6
*
0.3646
+
1.0
*
0.7317
=
1.84
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Advance Auto Parts (AAP) has a Altman Z-Score of 1.84 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Advance Auto Parts and its competitors. This is 26% below median its historical median of 2.49. Over the past decade, Advance Auto Parts' Altman Z-Score has ranged from 1.44 to 3.49. According to the industry distribution chart, Advance Auto Parts ranks #897 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 68.3%.
Is Advance Auto Parts' Altman Z-Score too high?
Advance Auto Parts' current Altman Z-Score of 1.84 is 26% below median its 10-year median of 2.49. Over the past 10 years, this metric has ranged from a low of 1.44 to a high of 3.49. The Vehicles & Parts industry median Altman Z-Score is 2.56. Advance Auto Parts' value of 1.84 is 28.1% below this industry median. Based on the distribution chart, Advance Auto Parts ranks #897 out of 1313 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' Altman Z-Score compare to DORM and ATMU?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #897 out of 1313 companies for Altman Z-Score. This places Advance Auto Parts in the lower half of its industry. The industry median Altman Z-Score is 2.56. Advance Auto Parts' value of 1.84 is 28.1% below this benchmark. Historically, Advance Auto Parts' own Altman Z-Score has ranged from 1.44 to 3.49 over the past decade. While the company's 10-year median is 2.49 vs. the industry median of 2.56, 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 Altman Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.56, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current Altman Z-Score of 1.84 is 28.1% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current Altman Z-Score is 1.84, which is 26% below median its own 10-year median of 2.49. 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 Altman Z-Score is 1.84, which is 26% below median its 10-year median of 2.49 and 28.1% below the Vehicles & Parts industry median of 2.56. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current Altman Z-Score is 1.84 as of Jun. 24, 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:
Altman Z-Score: 1.84 (26% below median its 10-year median of 2.49)
GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
Industry Position: 28.1% below the Vehicles & Parts median (#897 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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