Industry Revenues:

• Retail of car parts: approx. 70%
• Wholesale of car parts: approx. 20%
• Services and repairs: approx. 10%

TOP 3 Markets:

1. USA: approx. 85%
2. Canada: approx. 10%
3. Mexico: approx. 5%

Advance Auto Parts, Inc. generates the majority of its revenues in the retail of car parts, with the U.S. market accounting for the largest share. Wholesale and services also contribute to the income, but to a lesser extent. The expansion into Canada and Mexico demonstrates the geographical diversification of the company, although it remains relatively small compared to the U.S. market.

Production Sites: No proprietary production facilities

Advance Auto Parts, Inc. is a leading retailer in the automotive spare parts and accessories sector. The company does not produce its own products, but sources them from various manufacturers and suppliers worldwide. This strategy enables Advance Auto Parts to offer a wide range of products without having to build its own production capacities.

By collaborating with various suppliers, the company can flexibly respond to market changes and ensure that it always has the latest and most sought-after products in its range.

Revenue Growth: Estimated 3-5% annually (2026) Profit Margin: Estimated to remain stable at 4-5% (2026)

Advance Auto Parts, Inc. is pursuing a growth strategy focused on optimizing its supply chain and enhancing customer experience. The company is investing in technology to increase efficiency in inventory management and improve parts availability.

Another key focus is on expanding its digital business. By enhancing the online platform and mobile applications, Advance Auto Parts aims to increase the share of e-commerce revenue and strengthen customer loyalty.

Additionally, the company is leveraging strategic partnerships and acquisitions to expand its market presence and tap into new customer segments. These measures are intended to stabilize revenue growth and enhance Advance Auto Parts' position in the competitive automotive aftermarket.

Main raw materials: Car parts, accessories, batteries, motor oils

Countries of origin: China, Mexico, Germany, Japan

Advance Auto Parts, Inc. imports a variety of car parts and accessories necessary for retail and vehicle repair. The main raw materials include batteries, motor oils, filters, and other spare parts.

China and Mexico are significant suppliers of cost-effective car parts and accessories, while Germany and Japan are known for high-quality and specialized parts. These countries are key players in the global automotive supply industry, making them important partners for Advance Auto Parts.

Relying on international suppliers requires effective supply chain management to ensure product availability and quality.

Market share: Estimated 10% (2026)
Industry growth: 4% annually (2026)
EBITDA margin: 8.5% (2025)

Advance Auto Parts, Inc. has a significant competitive advantage due to its extensive supply chain and dense network of stores in the USA. This enables the company to offer a wide range of products and respond quickly to customer needs.

However, this competitive advantage is challenged by intense competition in the automotive aftermarket industry, especially from competitors like AutoZone and O'Reilly Automotive, who also hold strong market positions. Advance Auto Parts' ability to differentiate itself through customer service and innovative solutions remains crucial for maintaining and expanding its competitive edge.

Future growth opportunities could arise from the digitization of services and the expansion of online sales, which could help the company further strengthen its market position.

Institutional Investor Share: approximately 95% (estimated for 2026 based on historical trends)

Insider Buys/Sells: No significant transactions in recent months (estimated for 2026)

Advance Auto Parts, Inc. traditionally has a high institutional investor share, indicating the trust of large investment funds and institutional investors in the company. This share typically stands at around 95%, based on the most recent available data and the usual stability of such holdings.

Regarding insider buys and sells, there have been no significant transactions in recent months that would suggest a substantial change in insider positions. This indicates that the management and other insiders currently do not expect drastic changes in the company's valuation or strategy.

Market share of Advance Auto Parts, Inc.: 10% (estimated for 2026)

Major competitors and their market shares:

1. AutoZone, Inc.: 25%
2. O'Reilly Automotive, Inc.: 23%
3. Genuine Parts Company (NAPA): 20%
4. Advance Auto Parts, Inc.: 10%
5. Pep Boys: 5%
6. Carquest: 4%
7. NAPA Auto Parts (Franchise): 3%
8. Other smaller companies: 10%

Advance Auto Parts, Inc. holds a significant market share in the automotive parts retail sector, but lags behind market leaders AutoZone and O'Reilly Automotive. These two companies dominate the market with a combined share of almost 50%.

Moat of Advance Auto Parts:

Advance Auto Parts has a moderate moat, mainly supported by its broad geographic presence and extensive product offering. However, compared to leading competitors like AutoZone and O'Reilly Automotive, this moat is less pronounced. These companies benefit from stronger brand recognition, more efficient supply chains, and a larger customer base.

AutoZone and O'Reilly Automotive have significant advantages in the form of established customer loyalty programs and a strong online presence, which help them maintain and expand market share. The competitive advantage of Advance Auto Parts could be enhanced through strategic investments in technology and customer service to narrow the gap with the market leaders.

Revenue Growth: Estimated 3-5% annually (2026) Profit Growth: Estimated 2-4% annually (2026) Market Share: Stable with slight increases in certain segments

In recent years, Advance Auto Parts, Inc. has experienced moderate revenue growth, which is expected to be in the range of 3-5% annually. This is attributed to solid demand in the aftermarket and an effective sales strategy.

The company has consistently invested in its supply chain and technology to increase efficiency and enhance customer satisfaction. These investments could potentially lead to an improvement in profit margins in the long run.

The automotive parts market remains competitive, but Advance Auto Parts has strengthened its market position through strategic partnerships and an expanded product offering. This could help the company slightly expand its market share in certain segments.

Overall, Advance Auto Parts, Inc. could be a stable investment for investors interested in long-term engagement in the automotive sector, especially those who value a company that continuously invests in growth and efficiency improvement.

Dividend Yield: 4.5% (estimated for 2026)

Dividend History: Regular payout for several years

Advance Auto Parts, Inc. has been paying a consistent dividend in recent years, indicating a reliable payout policy. The estimated dividend yield of 4.5% for 2026 is competitive compared to other companies in the industry.

The company has regularly increased its dividends in the past, indicating a solid financial foundation and stable cash flows. Analysts expect Advance Auto Parts to continue its dividend policy in the coming years, barring any significant economic challenges.