ARKO CORP (ARKO) Stock Fundamental Analysis
USA - NASDAQ:ARKO - US0412421085 - Common Stock
4.28 USD
-0.11 (-2.51%)
4.28 USD
0 (0%)
Overall ARKO gets a fundamental rating of 4 out of 10. We evaluated ARKO against 121 industry peers in the Specialty Retail industry. ARKO has only an average score on both its financial health and profitability. ARKO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
ARKO had positive earnings in the past year.
ARKO had a positive operating cash flow in the past year.
In the past 5 years ARKO has always been profitable.
Each year in the past 5 years ARKO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.25%, ARKO is in line with its industry, outperforming 50.41% of the companies in the same industry.
ARKO has a Return On Equity (2.48%) which is comparable to the rest of the industry.
The Return On Invested Capital of ARKO (2.24%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ARKO is significantly below the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 2.48% | ||
| ROIC | 2.24% |
ROA(3y)1.08%
ROA(5y)1.09%
ROE(3y)9.65%
ROE(5y)9.47%
ROIC(3y)3.4%
ROIC(5y)3.4%
1.3 Margins
ARKO's Profit Margin of 0.11% is in line compared to the rest of the industry. ARKO outperforms 49.59% of its industry peers.
ARKO's Profit Margin has declined in the last couple of years.
ARKO has a Operating Margin (1.15%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARKO has grown nicely.
ARKO has a worse Gross Margin (15.09%) than 86.78% of its industry peers.
ARKO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.15% | ||
| PM (TTM) | 0.11% | ||
| GM | 15.09% |
OM growth 3Y-14.11%
OM growth 5Y107.59%
PM growth 3Y-37.88%
PM growth 5YN/A
GM growth 3Y2.7%
GM growth 5Y-1.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARKO is destroying value.
The number of shares outstanding for ARKO has been reduced compared to 1 year ago.
ARKO has less shares outstanding than it did 5 years ago.
ARKO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.54 indicates that ARKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARKO has a Altman-Z score (2.54) which is comparable to the rest of the industry.
ARKO has a debt to FCF ratio of 12.25. This is a negative value and a sign of low solvency as ARKO would need 12.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.25, ARKO is in line with its industry, outperforming 52.07% of the companies in the same industry.
A Debt/Equity ratio of 2.95 is on the high side and indicates that ARKO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.95, ARKO is doing worse than 73.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | 12.25 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.24
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.55 indicates that ARKO should not have too much problems paying its short term obligations.
ARKO has a better Current ratio (1.55) than 66.12% of its industry peers.
ARKO has a Quick Ratio of 1.11. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.11, ARKO is doing good in the industry, outperforming 79.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for ARKO have decreased strongly by -69.23% in the last year.
Measured over the past years, ARKO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -33.40% on average per year.
Looking at the last year, ARKO shows a very negative growth in Revenue. The Revenue has decreased by -13.05% in the last year.
Measured over the past years, ARKO shows a quite strong growth in Revenue. The Revenue has been growing by 16.16% on average per year.
EPS 1Y (TTM)-69.23%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%45.45%
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-16.27%
3.2 Future
The Earnings Per Share is expected to grow by 8.31% on average over the next years. This is quite good.
Based on estimates for the next years, ARKO will show a decrease in Revenue. The Revenue will decrease by -2.17% on average per year.
EPS Next Y25.54%
EPS Next 2Y1%
EPS Next 3Y-26.79%
EPS Next 5Y8.31%
Revenue Next Year-13.74%
Revenue Next 2Y-7.76%
Revenue Next 3Y-5.15%
Revenue Next 5Y-2.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 53.50 indicates a quite expensive valuation of ARKO.
Compared to the rest of the industry, the Price/Earnings ratio of ARKO is on the same level as its industry peers.
ARKO is valuated expensively when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
ARKO is valuated quite expensively with a Price/Forward Earnings ratio of 32.28.
ARKO's Price/Forward Earnings is on the same level as the industry average.
ARKO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.5 | ||
| Fwd PE | 32.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARKO is valued a bit cheaper than 78.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARKO is valued cheaper than 96.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 5.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARKO does not grow enough to justify the current Price/Earnings ratio.
A cheap valuation may be justified as ARKO's earnings are expected to decrease with -26.79% in the coming years.
PEG (NY)2.09
PEG (5Y)N/A
EPS Next 2Y1%
EPS Next 3Y-26.79%
5. Dividend
5.1 Amount
ARKO has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.20, ARKO pays a better dividend. On top of this ARKO pays more dividend than 86.78% of the companies listed in the same industry.
ARKO's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
ARKO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ARKO pays out 216.31% of its income as dividend. This is not a sustainable payout ratio.
DP216.31%
EPS Next 2Y1%
EPS Next 3Y-26.79%
4.28
-0.11 (-2.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners56.79%
Inst Owner Change0.9%
Ins Owners11.88%
Ins Owner Change0.41%
Market Cap482.53M
Revenue(TTM)8.10B
Net Income(TTM)9.06M
Analysts80
Price Target6.76 (57.94%)
Short Float %3.5%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP216.31%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.96%
Min EPS beat(2)30.8%
Max EPS beat(2)65.12%
EPS beat(4)2
Avg EPS beat(4)-109.46%
Min EPS beat(4)-492.16%
Max EPS beat(4)65.12%
EPS beat(8)5
Avg EPS beat(8)-43.03%
EPS beat(12)5
Avg EPS beat(12)-48.99%
EPS beat(16)7
Avg EPS beat(16)-38.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.76%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-2.87%
Revenue beat(8)1
Avg Revenue beat(8)-4.05%
Revenue beat(12)2
Avg Revenue beat(12)-3.8%
Revenue beat(16)4
Avg Revenue beat(16)-3.07%
PT rev (1m)0%
PT rev (3m)-7.02%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)50%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-1.69%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.5 | ||
| Fwd PE | 32.28 | ||
| P/S | 0.06 | ||
| P/FCF | 5.23 | ||
| P/OCF | 2.09 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.78 |
EPS(TTM)0.08
EY1.87%
EPS(NY)0.13
Fwd EY3.1%
FCF(TTM)0.82
FCFY19.13%
OCF(TTM)2.04
OCFY47.76%
SpS71.84
BVpS3.24
TBVpS-0.94
PEG (NY)2.09
PEG (5Y)N/A
Graham Number2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 2.48% | ||
| ROCE | 2.97% | ||
| ROIC | 2.24% | ||
| ROICexc | 2.48% | ||
| ROICexgc | 2.98% | ||
| OM | 1.15% | ||
| PM (TTM) | 0.11% | ||
| GM | 15.09% | ||
| FCFM | 1.14% |
ROA(3y)1.08%
ROA(5y)1.09%
ROE(3y)9.65%
ROE(5y)9.47%
ROIC(3y)3.4%
ROIC(5y)3.4%
ROICexc(3y)3.74%
ROICexc(5y)3.8%
ROICexgc(3y)4.49%
ROICexgc(5y)4.59%
ROCE(3y)4.5%
ROCE(5y)4.5%
ROICexgc growth 3Y-17.3%
ROICexgc growth 5Y113.37%
ROICexc growth 3Y-17.08%
ROICexc growth 5Y110.52%
OM growth 3Y-14.11%
OM growth 5Y107.59%
PM growth 3Y-37.88%
PM growth 5YN/A
GM growth 3Y2.7%
GM growth 5Y-1.33%
F-Score5
Asset Turnover2.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | 12.25 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 101.87% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 1.03 | ||
| Cash Conversion | 100.88% | ||
| Profit Quality | 1019.09% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.54 |
F-Score5
WACC9.26%
ROIC/WACC0.24
Cap/Depr(3y)90.08%
Cap/Depr(5y)112.67%
Cap/Sales(3y)1.19%
Cap/Sales(5y)1.55%
Profit Quality(3y)323.16%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-69.23%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%45.45%
EPS Next Y25.54%
EPS Next 2Y1%
EPS Next 3Y-26.79%
EPS Next 5Y8.31%
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-16.27%
Revenue Next Year-13.74%
Revenue Next 2Y-7.76%
Revenue Next 3Y-5.15%
Revenue Next 5Y-2.17%
EBIT growth 1Y-29.43%
EBIT growth 3Y-9.31%
EBIT growth 5Y141.14%
EBIT Next Year140.69%
EBIT Next 3Y36.31%
EBIT Next 5Y21.69%
FCF growth 1Y16.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.87%
OCF growth 3Y11.7%
OCF growth 5Y38.65%
ARKO CORP / ARKO FAQ
What is the ChartMill fundamental rating of ARKO CORP (ARKO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARKO.
What is the valuation status of ARKO CORP (ARKO) stock?
ChartMill assigns a valuation rating of 3 / 10 to ARKO CORP (ARKO). This can be considered as Overvalued.
How profitable is ARKO CORP (ARKO) stock?
ARKO CORP (ARKO) has a profitability rating of 4 / 10.
How financially healthy is ARKO CORP?
The financial health rating of ARKO CORP (ARKO) is 4 / 10.
Can you provide the expected EPS growth for ARKO stock?
The Earnings per Share (EPS) of ARKO CORP (ARKO) is expected to grow by 25.54% in the next year.