Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Advanced Auto Parts, Inc. navigated a challenging Q1 2024 marked by headwinds such as inclement weather, diminished consumer purchasing power and higher credit card debt.</li><li>The company's performance came in lower than anticipated as comps declined 20 basis points year-on year.</li><li>However, the company saw low, single-digit improvements in its professional business with respect to both comp and transactions, driven by a targeted strategy across multiple segments, including street customers, strategic accounts, Carquest Independents and Worldpac.</li></ul>

Advanced Auto Parts, Inc. navigated a challenging Q1 2024 marked by headwinds such as inclement weather, diminished consumer purchasing power and higher credit card debt.The company's performance came in lower than anticipated as comps declined 20 basis points year-on year.However, the company saw low, single-digit improvements in its professional business with respect to both comp and transactions, driven by a targeted strategy across multiple segments, including street customers, strategic accounts, Carquest Independents and Worldpac.

Advance Auto Parts Inc.:  Price Adjustments and Competitive Positioning & Other Major Drivers

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Key points<ul><li>Advance Auto Parts (AAP) is currently undervalued and presents a favorable investment opportunity.</li><li>Despite perceived issues, AAP has a strong profitability history and is trading at a significantly lower valuation than its peers.</li><li>Assuming AAP can achieve historical levels of free cash flow, there is potential for attractive value creation. The new CEO and CFO appointments and the sale of non-core assets are seen as positive developments that could further enhance AAP's operations and potentially lead to a recovery in 2024.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key pointsAdvance Auto Parts (AAP) is currently undervalued and presents a favorable investment opportunity.Despite perceived issues, AAP has a strong profitability history and is trading at a significantly lower valuation than its peers.Assuming AAP can achieve historical levels of free cash flow, there is potential for attractive value creation. The new CEO and CFO appointments and the sale of non-core assets are seen as positive developments that could further enhance AAP's operations and potentially lead to a recovery in 2024.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Advance Auto Parts Inc (AAP) - Friday, Nov 17, 2023

Key points (machine generated)<ul><li>Advance Auto Parts (AAP) is considered a value trap and not a good investment due to its stagnant stock price since July 2010 and declining operating income over the past 14 years.</li><li>The author suggests that AAP could present a good short opportunity and could serve as a hedge against industry and macro risks for a long position in competitor O'Reilly Automotive (ORLY).</li><li>The author highlights the challenges of retail in general and the failure of many tier 2 and tier 3 players in the past.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)Advance Auto Parts (AAP) is considered a value trap and not a good investment due to its stagnant stock price since July 2010 and declining operating income over the past 14 years.The author suggests that AAP could present a good short opportunity and could serve as a hedge against industry and macro risks for a long position in competitor O'Reilly Automotive (ORLY).The author highlights the challenges of retail in general and the failure of many tier 2 and tier 3 players in the past.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Advance Auto Parts Inc (AAP) - Wednesday, Nov 1, 2023

<ul><li>Advance Auto Parts delivered a mixed result in the third quarter, with revenues above market expectations.</li><li>In Q3, it witnessed a 2.9% increase in net sales, driven by the sustained strength in its professional business segment.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Advance Auto Parts delivered a mixed result in the third quarter, with revenues above market expectations.In Q3, it witnessed a 2.9% increase in net sales, driven by the sustained strength in its professional business segment.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Advance Auto Parts Inc.: Surprising Trends in Auto Parts Sales - What's Driving Growth? - Major Drivers

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuhu-car-inc" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (9690 HK)</a> is poised to capture the lion share of China's automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. </li>
<li>Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    </li>
<li>Our fair value of HKD24 implies 25x FY25 PE - average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.</li>
</ul>



Tuhu Car (9690 HK) is poised to capture the lion share of China's automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. 
Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    
Our fair value of HKD24 implies 25x FY25 PE - average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.


Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

United States

Advance Auto Parts, Inc. is a retailer of auto parts and accessories. The Company operates stores in various states, primarily  located in the northeastern, southeastern, and midwestern regions of the United States, and in Puerto Rico and the Virgin Islands.

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Advance Auto Parts (AAP US)

Advance Auto Parts Inc.: Price Adjustments and Competitive Positioning & Other Major Drivers

Advanced Auto Parts, Inc. navigated a challenging Q1 2024 marked by headwinds such as inclement weather, diminished consumer purchasing power and...

Baptista Research

Advance Auto Parts Inc (AAP) - Friday, Nov 17, 2023

Despite perceived issues, AAP has a strong profitability history and is trading at a significantly lower valuation than its peers.

Value Investors Club

Advance Auto Parts Inc (AAP) - Wednesday, Nov 1, 2023

The author argues that Advance Auto Parts is not a wise investment due to its stagnant stock price and declining operating income, suggesting it...

Value Investors Club

Advance Auto Parts Inc.: Surprising Trends in Auto Parts Sales - What's Driving Growth? - Major Drivers

Advance Auto Parts delivered a mixed result in the third quarter, with revenues above market expectations. In Q3, it witnessed a 2.9% increase in...

Baptista Research

Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.

Mohshin Aziz

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Advance Auto Parts Inc.: Price Adjustments and Competitive Positioning & Other Major Drivers

Advanced Auto Parts, Inc. navigated a challenging Q1 2024 marked by headwinds such as inclement weather, diminished consumer purchasing power and...

Baptista Research

Advance Auto Parts Inc (AAP) - Friday, Nov 17, 2023

Despite perceived issues, AAP has a strong profitability history and is trading at a significantly lower valuation than its peers.

Value Investors Club

Advance Auto Parts Inc (AAP) - Wednesday, Nov 1, 2023

The author argues that Advance Auto Parts is not a wise investment due to its stagnant stock price and declining operating income, suggesting it...

Value Investors Club

Advance Auto Parts Inc.: Surprising Trends in Auto Parts Sales - What's Driving Growth? - Major Drivers

Advance Auto Parts delivered a mixed result in the third quarter, with revenues above market expectations. In Q3, it witnessed a 2.9% increase in...

Baptista Research

Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

​Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.

Mohshin Aziz

Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.