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AAP vs FIGS

AAP
Advance Auto Parts, Inc.
BEARISH
Price
$46.77
Market Cap
$2.81B
Sector
Consumer Cyclical
AI Confidence
88%
FIGS
FIGS, Inc.
NEUTRAL
Price
$16.51
Market Cap
$2.76B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
AAP
--
FIGS
86.89
Forward P/E
AAP
17.52
FIGS
52.8
P/B Ratio
AAP
1.28
FIGS
6.26
P/S Ratio
AAP
0.33
FIGS
4.37
EV/EBITDA
AAP
24.78
FIGS
53.11

Profitability

Gross Margin
AAP
42.35%
FIGS
66.53%
Operating Margin
AAP
2.9%
FIGS
9.32%
Profit Margin
AAP
-4.37%
FIGS
5.43%
ROE
AAP
-23.87%
FIGS
8.41%
ROA
AAP
0.01%
FIGS
4.38%

Growth

Revenue Growth
AAP
-5.2%
FIGS
33.0%
Earnings Growth
AAP
--
FIGS
748.3%

Financial Health

Debt/Equity
AAP
2.58
FIGS
0.14
Current Ratio
AAP
1.73
FIGS
4.94
Quick Ratio
AAP
0.84
FIGS
3.39

Dividends

Dividend Yield
AAP
2.18%
FIGS
--
Payout Ratio
AAP
126.58%
FIGS
0.0%

AI Verdict

AAP BEARISH

The Advanced Deterministic Scorecard reveals severe financial health concerns with a Piotroski F-Score of just 1/9, indicating weak operational and balance sheet performance. Despite a modest dividend yield and a low Price/Sales ratio, the company is unprofitable with negative earnings, deteriorating ROE of -23.87%, and a high debt/equity ratio of 2.58. Earnings volatility is extreme, with recent quarters showing massive misses and a YoY EPS growth distortion due to negative prior-year comparisons. The stock trades below fair value expectations but reflects justified risk discounting given persistent profitability and cash flow challenges.

Strengths
Attractive Price/Sales ratio of 0.33 suggests potential undervaluation relative to revenue
Gross margin remains healthy at 42.35%, indicating pricing power or cost control at the product level
Current ratio of 1.73 shows short-term liquidity is adequate
Risks
Piotroski F-Score of 1/9 signals severe financial distress and weak fundamentals
Negative profit margin (-4.37%) and ROE (-23.87%) indicate ongoing unprofitability and poor capital efficiency
Debt/Equity ratio of 2.58 is well above sector average (1.58), increasing financial risk
FIGS NEUTRAL

FIGS exhibits strong operational health with a Piotroski F-Score of 8/9 and a pristine balance sheet characterized by very low debt (D/E 0.14) and high liquidity. However, there is a severe disconnect between the company's fundamental value and its market price, with the current price of $16.51 trading significantly above both the Graham Number ($3.36) and the Intrinsic Value ($5.61). While explosive earnings growth and consistent estimate beats support a growth narrative, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, suggests the stock may be overextended.

Strengths
Strong financial health (Piotroski F-Score 8/9)
Exceptional gross margins (66.53%)
Explosive YoY earnings growth (748.30%)
Risks
Extreme valuation premium (P/E of 86.89)
Significant divergence from intrinsic value ($16.51 vs $5.61)
Aggressive insider selling (9 sell transactions, 0 buys)

Compare Another Pair

AAP vs FIGS: Head-to-Head Comparison

This page compares Advance Auto Parts, Inc. (AAP) and FIGS, Inc. (FIGS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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