📊 AI Stock Rating — Summary

American Auto Parts (AAP) reported $2.036 billion in revenue for the latest quarter, with a net income of negative $1 million, resulting in an EPS of -$0.02. The company faces headwinds in profitability and cash flow as evidenced by a negative free cash flow of $76 million. Year-over-year revenue growth appears flat, with no notable growth drivers reported. Cash flow challenges persist, highlighted by an operating cash outflow of $12 million and substantial capital expenditure. The company showed financial prudence with a significant $1.608 billion debt repayment, but net debt remains high at $2.087 billion, posing leverage risks. Total equity stands at $2.195 billion against $12.059 billion in assets, with a debt-to equity ratio suggesting cautious balance sheet management needs. Dividend payouts of $0.25 per quarter demonstrate commitment to shareholder returns despite broader challenges. Analyst price targets range from $40 to $60, with a consensus of $51.11, indicating mixed sentiment. The stock's 1-year price change is not specified, impacting the shareholder returns assessment.

AI Score Breakdown

Revenue Growth — Score: 4/10

Revenue growth is stagnant at $2.036 billion, showing no significant year-over-year increase. Primary drivers remain undisclosed, suggesting unclear growth prospects.

Profitability — Score: 3/10

Net income is negative at $1 million, with an EPS of -$0.02 indicating weak profitability. The operating margin remains under pressure.

Cash Flow Quality — Score: 2/10

Substantial negative free cash flow of $76 million challenges liquidity. Dividend payments continue but may strain cash reserves if negative cash flow trends persist.

Leverage & Balance Sheet — Score: 5/10

Net debt of $2.087 billion is significant, but recent debt repayment of $1.608 billion demonstrates positive financial management. The balance sheet needs careful leverage monitoring.

Shareholder Returns — Score: 5/10

Quarterly dividends paid out consistently at $0.25 per share show shareholder value prioritization, but further analysis of share price evolution over the past year is required for robust assessment.

Analyst Sentiment & Valuation — Score: 6/10

With price targets ranging from $40 to $60 and a consensus at $51.11, market sentiment is mixed. Analysts see both potential risks and upside, suggesting a fair valuation contextually.

⚠ AI-generated — informational only, not financial advice.