ARKO CORP (ARKO) Fundamental Analysis & Valuation

NASDAQ:ARKO • US0412421085

Current stock price

5.46 USD
-0.05 (-0.91%)
At close:
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This ARKO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ARKO Profitability Analysis

1.1 Basic Checks

  • In the past year ARKO was profitable.
  • In the past year ARKO had a positive cash flow from operations.
  • In the past 5 years ARKO has always been profitable.
  • ARKO had a positive operating cash flow in each of the past 5 years.
ARKO Yearly Net Income VS EBIT VS OCF VS FCFARKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • With a Return On Assets value of 0.48%, ARKO perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
  • ARKO has a better Return On Equity (4.63%) than 60.98% of its industry peers.
  • ARKO has a Return On Invested Capital (2.42%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARKO is significantly below the industry average of 13.27%.
Industry RankSector Rank
ROA 0.48%
ROE 4.63%
ROIC 2.42%
ROA(3y)0.56%
ROA(5y)1.11%
ROE(3y)5.41%
ROE(5y)9.74%
ROIC(3y)2.76%
ROIC(5y)3.45%
ARKO Yearly ROA, ROE, ROICARKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60

1.3 Margins

  • Looking at the Profit Margin, with a value of 0.22%, ARKO is in line with its industry, outperforming 50.41% of the companies in the same industry.
  • ARKO's Profit Margin has declined in the last couple of years.
  • ARKO has a Operating Margin (1.27%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of ARKO has declined.
  • With a Gross Margin value of 15.45%, ARKO is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of ARKO has declined.
Industry RankSector Rank
OM 1.27%
PM (TTM) 0.22%
GM 15.45%
OM growth 3Y-11.52%
OM growth 5Y-8.77%
PM growth 3Y-32.47%
PM growth 5Y-3.03%
GM growth 3Y7.42%
GM growth 5Y-4.76%
ARKO Yearly Profit, Operating, Gross MarginsARKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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4

2. ARKO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARKO is destroying value.
  • ARKO has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ARKO has been reduced compared to 5 years ago.
  • ARKO has a worse debt/assets ratio than last year.
ARKO Yearly Shares OutstandingARKO Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
ARKO Yearly Total Debt VS Total AssetsARKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.50 indicates that ARKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.50, ARKO is in the better half of the industry, outperforming 60.16% of the companies in the same industry.
  • The Debt to FCF ratio of ARKO is 17.25, which is on the high side as it means it would take ARKO, 17.25 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ARKO (17.25) is comparable to the rest of the industry.
  • ARKO has a Debt/Equity ratio of 2.93. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 2.93, ARKO is doing worse than 69.92% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.93
Debt/FCF 17.25
Altman-Z 2.5
ROIC/WACC0.32
WACC7.51%
ARKO Yearly LT Debt VS Equity VS FCFARKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.66 indicates that ARKO should not have too much problems paying its short term obligations.
  • ARKO has a better Current ratio (1.66) than 69.92% of its industry peers.
  • A Quick Ratio of 1.22 indicates that ARKO should not have too much problems paying its short term obligations.
  • The Quick ratio of ARKO (1.22) is better than 81.30% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.22
ARKO Yearly Current Assets VS Current LiabilitesARKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ARKO Growth Analysis

3.1 Past

  • ARKO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.77%, which is quite good.
  • Measured over the past years, ARKO shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.30% on average per year.
  • ARKO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.47%.
  • The Revenue has been growing by 13.77% on average over the past years. This is quite good.
EPS 1Y (TTM)10.77%
EPS 3Y-34.4%
EPS 5Y-0.3%
EPS Q2Q%113.33%
Revenue 1Y (TTM)-12.47%
Revenue growth 3Y-5.8%
Revenue growth 5Y13.77%
Sales Q2Q%-9.93%

3.2 Future

  • Based on estimates for the next years, ARKO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.44% on average per year.
  • The Revenue is expected to decrease by -0.02% on average over the next years.
EPS Next Y55.83%
EPS Next 2Y43.32%
EPS Next 3Y15.94%
EPS Next 5Y10.44%
Revenue Next Year-5.63%
Revenue Next 2Y-2.31%
Revenue Next 3Y-0.78%
Revenue Next 5Y-0.02%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ARKO Yearly Revenue VS EstimatesARKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ARKO Yearly EPS VS EstimatesARKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.1 0.2 0.3 0.4 0.5

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4

4. ARKO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.00, the valuation of ARKO can be described as expensive.
  • ARKO's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of ARKO to the average of the S&P500 Index (24.89), we can say ARKO is valued expensively.
  • ARKO is valuated rather expensively with a Price/Forward Earnings ratio of 24.33.
  • ARKO's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ARKO is valued at the same level.
Industry RankSector Rank
PE 39
Fwd PE 24.33
ARKO Price Earnings VS Forward Price EarningsARKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • ARKO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARKO is cheaper than 78.05% of the companies in the same industry.
  • 82.93% of the companies in the same industry are more expensive than ARKO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.28
EV/EBITDA 6.11
ARKO Per share dataARKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ARKO's earnings are expected to grow with 15.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y43.32%
EPS Next 3Y15.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ARKO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.18%, ARKO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.75, ARKO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ARKO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.18%

5.2 History

  • ARKO has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of ARKO decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
ARKO Yearly Dividends per shareARKO Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 2026 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

  • ARKO pays out 113.99% of its income as dividend. This is not a sustainable payout ratio.
DP113.99%
EPS Next 2Y43.32%
EPS Next 3Y15.94%
ARKO Yearly Income VS Free CF VS DividendARKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M
ARKO Dividend Payout.ARKO Dividend Payout, showing the Payout Ratio.ARKO Dividend Payout.PayoutRetained Earnings

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ARKO Fundamentals: All Metrics, Ratios and Statistics

ARKO CORP

NASDAQ:ARKO (3/27/2026, 8:01:06 PM)

After market: 5.46 0 (0%)

5.46

-0.05 (-0.91%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25
Earnings (Next)05-06
Inst Owners56.41%
Inst Owner Change-4.79%
Ins Owners11.85%
Ins Owner Change2.32%
Market Cap605.46M
Revenue(TTM)7.64B
Net Income(TTM)16.99M
Analysts85
Price Target8.67 (58.79%)
Short Float %2.21%
Short Ratio2.81
Dividend
Industry RankSector Rank
Dividend Yield 2.18%
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP113.99%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)62.23%
Min EPS beat(2)-14.75%
Max EPS beat(2)139.22%
EPS beat(4)3
Avg EPS beat(4)55.1%
Min EPS beat(4)-14.75%
Max EPS beat(4)139.22%
EPS beat(8)5
Avg EPS beat(8)-17.9%
EPS beat(12)6
Avg EPS beat(12)-34.43%
EPS beat(16)7
Avg EPS beat(16)-31.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.67%
Revenue beat(12)2
Avg Revenue beat(12)-3.3%
Revenue beat(16)4
Avg Revenue beat(16)-2.75%
PT rev (1m)0%
PT rev (3m)15.91%
EPS NQ rev (1m)6.25%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)83.33%
EPS NY rev (3m)83.33%
Revenue NQ rev (1m)-3.35%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.73%
Valuation
Industry RankSector Rank
PE 39
Fwd PE 24.33
P/S 0.08
P/FCF 9.28
P/OCF 3.14
P/B 1.65
P/tB N/A
EV/EBITDA 6.11
EPS(TTM)0.14
EY2.56%
EPS(NY)0.22
Fwd EY4.11%
FCF(TTM)0.59
FCFY10.77%
OCF(TTM)1.74
OCFY31.81%
SpS68.93
BVpS3.31
TBVpS-0.84
PEG (NY)0.7
PEG (5Y)N/A
Graham Number3.23
Profitability
Industry RankSector Rank
ROA 0.48%
ROE 4.63%
ROCE 3.12%
ROIC 2.42%
ROICexc 2.69%
ROICexgc 3.22%
OM 1.27%
PM (TTM) 0.22%
GM 15.45%
FCFM 0.85%
ROA(3y)0.56%
ROA(5y)1.11%
ROE(3y)5.41%
ROE(5y)9.74%
ROIC(3y)2.76%
ROIC(5y)3.45%
ROICexc(3y)3.01%
ROICexc(5y)3.83%
ROICexgc(3y)3.62%
ROICexgc(5y)4.61%
ROCE(3y)3.56%
ROCE(5y)4.44%
ROICexgc growth 3Y-19.57%
ROICexgc growth 5Y-2.94%
ROICexc growth 3Y-19.56%
ROICexc growth 5Y-2.33%
OM growth 3Y-11.52%
OM growth 5Y-8.77%
PM growth 3Y-32.47%
PM growth 5Y-3.03%
GM growth 3Y7.42%
GM growth 5Y-4.76%
F-Score7
Asset Turnover2.16
Health
Industry RankSector Rank
Debt/Equity 2.93
Debt/FCF 17.25
Debt/EBITDA 4.65
Cap/Depr 94.73%
Cap/Sales 1.67%
Interest Coverage 1.11
Cash Conversion 83.32%
Profit Quality 383.76%
Current Ratio 1.66
Quick Ratio 1.22
Altman-Z 2.5
F-Score7
WACC7.51%
ROIC/WACC0.32
Cap/Depr(3y)89.31%
Cap/Depr(5y)119.6%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.66%
Profit Quality(3y)395.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.77%
EPS 3Y-34.4%
EPS 5Y-0.3%
EPS Q2Q%113.33%
EPS Next Y55.83%
EPS Next 2Y43.32%
EPS Next 3Y15.94%
EPS Next 5Y10.44%
Revenue 1Y (TTM)-12.47%
Revenue growth 3Y-5.8%
Revenue growth 5Y13.77%
Sales Q2Q%-9.93%
Revenue Next Year-5.63%
Revenue Next 2Y-2.31%
Revenue Next 3Y-0.78%
Revenue Next 5Y-0.02%
EBIT growth 1Y-9.39%
EBIT growth 3Y-16.65%
EBIT growth 5Y3.79%
EBIT Next Year158.71%
EBIT Next 3Y41.11%
EBIT Next 5Y26.1%
FCF growth 1Y-39.58%
FCF growth 3Y-16.12%
FCF growth 5Y-12.77%
OCF growth 1Y-13.19%
OCF growth 3Y-2.74%
OCF growth 5Y2.07%

ARKO CORP / ARKO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ARKO CORP (ARKO) stock?

ChartMill assigns a fundamental rating of 4 / 10 to ARKO.


Can you provide the valuation status for ARKO CORP?

ChartMill assigns a valuation rating of 4 / 10 to ARKO CORP (ARKO). This can be considered as Fairly Valued.


How profitable is ARKO CORP (ARKO) stock?

ARKO CORP (ARKO) has a profitability rating of 3 / 10.


What are the PE and PB ratios of ARKO CORP (ARKO) stock?

The Price/Earnings (PE) ratio for ARKO CORP (ARKO) is 39 and the Price/Book (PB) ratio is 1.65.


What is the earnings growth outlook for ARKO CORP?

The Earnings per Share (EPS) of ARKO CORP (ARKO) is expected to grow by 55.83% in the next year.