Advance Auto Parts Inc. AAP

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
41/100
Developing

About Advance Auto Parts Inc.

Advance Auto Parts, Inc. provides automotive aftermarket parts. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also provides … Full AAP analysis →

Competitive advantage assessment

Key strengths

  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.78), suggesting sticky customer base.
  • Strong Liquidity Buffer Liquidity position is strong (score 0.63), providing operational cushion.

Key risks

  • ROIC Below WACC or Peers ROIC at 36.7th percentile suggests inefficient capital deployment.
  • Elevated Debt Risk Debt serviceability is weak (score 0.40), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
31

Where AAP ranks in Specialty Retail

Advance Auto Parts Inc. ranks #31 of 52 scored companies in Specialty Retail by moat score — the top 60%. The widest moat in the group is Winmark Corporation (WINA) at 83/100.

Moat scores for companies ranked near AAP in Specialty Retail
# Company Moat score Rating
27 ARKO Corp. ARKO 50/100 Moderate
28 The ODP Corporation ODP 50/100 Developing
29 Olaplex Holdings, Inc. OLPX 46/100 Developing
30 Petco Health and Wellness Compa WOOF 42/100 Developing
31 Advance Auto Parts Inc. AAP 41/100 Developing
32 Boqii Holding Limited BQ 40/100 Developing
33 MarineMax, Inc. (FL) HZO 40/100 Developing
34 PTL LTD PTLE 38/100 Developing
35 Sportsman's Warehouse Holdings, SPWH 38/100 Developing

See every General Corporate company ranked by moat score →

How AAP scores on the Corporate Default defenses

Pricing Power

Score 31 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 42 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 52 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 36 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 46 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 42 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AAP's moat

What is Advance Auto Parts Inc.'s moat score?

Advance Auto Parts Inc. (AAP) scores 41 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #31 of 52 scored companies in Specialty Retail, the top 60%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 51 companies in Specialty Retail. Its strongest defense is Customer Stickiness (52/100) and its weakest is Pricing Power (31/100).

How does Advance Auto Parts Inc. compare with other Specialty Retail companies?

Advance Auto Parts Inc. ranks #31 of 52 scored companies in Specialty Retail by moat score. The widest moat in Specialty Retail is Winmark Corporation (WINA) at 83/100. The companies ranked closest are Petco Health and Wellness Compa (WOOF) at 42 just above it and Boqii Holding Limited (BQ) at 40 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 51 companies in Specialty Retail. The defenses are then weighted to produce the overall score out of 100.

Why is Advance Auto Parts Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Advance Auto Parts Inc.?

The Corporate Default template measures 6 defenses, and AAP scores: Pricing Power (31), Cost Advantage (42), Customer Stickiness (52), Capital Efficiency (36), Resilience (46), Scale & Market Position (42). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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