- AAP is a leading automotive aftermarket parts provider in North America.
- Affordability constraints in the current market for new and used vehicles are a boon to companies such as AAP, who profit from those holding onto their existing vehicles.
- The average age of vehicles on U.S. roadways recently hit a record 12.2 years in 2021. For AAP, this means increased demand for brakes and other vehicle components.
- At an EV multiple of 10.6x, AAP is discounted to related peers within the industry.
- Prospective investors would receive an annual dividend of $6.00/share, in addition to modest upside potential.
For further details see:
Advance Auto Parts: Old Vehicles Require Continued Maintenance