No connection

Search Results

AAP vs LCII

AAP
Advance Auto Parts, Inc.
BEARISH
Price
$46.77
Market Cap
$2.81B
Sector
Consumer Cyclical
AI Confidence
88%
LCII
LCI Industries
BULLISH
Price
$118.09
Market Cap
$2.87B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
AAP
--
LCII
15.6
Forward P/E
AAP
17.52
LCII
11.9
P/B Ratio
AAP
1.28
LCII
2.1
P/S Ratio
AAP
0.33
LCII
0.7
EV/EBITDA
AAP
24.78
LCII
9.65

Profitability

Gross Margin
AAP
42.35%
LCII
23.78%
Operating Margin
AAP
2.9%
LCII
3.79%
Profit Margin
AAP
-4.37%
LCII
4.57%
ROE
AAP
-23.87%
LCII
13.7%
ROA
AAP
0.01%
LCII
5.76%

Growth

Revenue Growth
AAP
-5.2%
LCII
16.1%
Earnings Growth
AAP
--
LCII
104.2%

Financial Health

Debt/Equity
AAP
2.58
LCII
0.91
Current Ratio
AAP
1.73
LCII
2.85
Quick Ratio
AAP
0.84
LCII
0.98

Dividends

Dividend Yield
AAP
2.18%
LCII
3.9%
Payout Ratio
AAP
126.58%
LCII
60.77%

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
LCII BULLISH

LCII exhibits strong fundamental health with a Piotroski F-Score of 7/9 and trades significantly below its growth-based intrinsic value of $223.31. While the Graham Number suggests a more conservative defensive value of $97.87, the company's explosive earnings growth (104.2% YoY) and low Price/Sales ratio (0.70) indicate substantial undervaluation. Despite bearish insider sentiment and a current technical downturn, the company's profitability and liquidity metrics far outperform its sector peers.

Strengths
Strong Piotroski F-Score (7/9) indicating robust financial health
Explosive earnings growth (104.2% YoY) and consistent earnings beats
Highly attractive valuation with a P/S ratio of 0.70 and PEG of 1.04
Risks
Bearish insider activity with $13.14M in sales by the CEO and Officers
Thin net profit margins (4.57%) leaving little room for operational error
Exposure to the highly cyclical Recreational Vehicles industry

Compare Another Pair

AAP vs LCII: Head-to-Head Comparison

This page compares Advance Auto Parts, Inc. (AAP) and LCI Industries (LCII) 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.

Home
Terminal
AI Chat
Markets
Profile