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    День рождения:
    11 мар 1998 (Возраст: 26)
    Сайт:
    https://www.koreacarparts.com/auto-parts-for-ssangyong-tivoli/
    This column is part of the Heard on the Street Stock Picking

    Contest. You’re invited to play along with us here.


    Even the most cursory reader of news has seen the headlines by

    now: Used cars are expensive, and weather across the U.S. has been

    extreme. While that sounds like trouble to most people, it is music

    to the ears of car-parts retailer Advance

    Auto Parts for Ssangyong Korando. AAP -0.71%


    Investors have been slower to take notice, though. Advance Auto Parts

    shares are up 32% since the beginning of 2020 but have lagged behind

    a basket of retailers by 30 percentage points. Meanwhile, a basket of

    used- and new-car sellers’ stocks has done far better over the same

    period, even after excluding high-growth e-commerce names such as

    Carvana.


    The blockbuster profits seen in the used-car selling business will

    wind down when the chip shortage eases. The effects on the



    Auto Parts for Ssangyong Tivoli
    and repairs business, however,

    could prove lasting. The average age of cars and light trucks on U.S.

    roads is a record 12.1 years according to IHS Markit. In particular,

    there has been healthy growth in cars aged 4-to-11 years, which is

    deemed a sweet spot as they are often past their warranty and can be

    serviced by independent garages—an important customer cohort for

    Advance Auto Parts for Ssangyong Rexton. The scarcity of new

    vehicles and higher used-car prices should prompt more car owners to

    continue repairing their existing vehicles for some time, especially

    with the absence of another round of stimulus checks. Sure, those

    prices may be coming off their highs—Manheim data shows wholesale

    used-vehicle prices declined slightly in July compared with June. But

    they remain 24% more expensive than a year earlier so a return to

    normal pricing could take time. Automakers have said the chip

    shortage could weigh on the production well into the second half of

    this year.


    Meanwhile, this year’s hotter-than-average summer should also help

    drive up parts demand, just as the harsh winter did earlier this

    year. And vehicle miles traveled are still recovering, creating more

    wear and tear.

    Skeptics might fear that sales are already near their peak. In its

    first quarter ended April 24, Advance



    Auto Part for Ssangyong Kyron
    saw same-store sales jump 24.7%

    compared with a year earlier. Compared with peers, though, Advance

    Auto Parts appears to have a longer growth runway.


    For one, its business leans more heavily on car-repair professionals,

    who account for roughly 60% of sales. That was a drag last year as

    pandemic-wary consumers opted for do-it-yourself repairs or put off

    the work. Demand among professionals is just starting to catch up.


    Additionally, car parts didn’t exactly fly off the shelf last year

    in the Northeast—the company’s largest market—because the region’

    s mobility was heavily affected by the pandemic. That market is

    staging a healthy recovery in



    Auto Parts for Ssangyong Actyon
    demand, and a return to severe

    restrictions seems less likely in the highly vaccinated region.


    There is also more room to run valuation-wise. Advance

    Auto Parts for Ssangyong Chairman’ shares fetch 1.31

    times enterprise value to forward-12-month revenue, while peers

    AutoZone AZO -0.73% and O’Reilly Automotive ORLY -1.29% fetch 2.9

    times and 3.6 times, respectively, according to FactSet.


    The company has lagged behind in recent years because its management,

    which took the reins after activist investor Starboard Value bought a

    stake in 2015, didn’t deliver on the targets that some analysts

    think were unrealistic to begin with.


    Most of the heavy lifting is now behind Advance



    Auto Parts for Ssangyong Rodius
    . In the past few years, the

    company has overhauled its organizational culture, found efficiencies

    among its four different store banners and invested wisely in

    technology, according to Mr. Ciccarelli’s report.


    After years of declining or slowly improving operating margins, the

    company seems to be turning around. Its full-year margins for 2020

    were 7.9%, almost a full percentage point higher than the prior year.

    Analysts polled by FactSet now deem the company’s 10.5% to 12.5%

    operating margin goal for 2023 realistic.
    It is time for investors to peek under the hood.