ARKO CORP (ARKO) Stock Fundamental Analysis
NASDAQ:ARKO - Nasdaq - US0412421085 - Common Stock - Currency: USD
Overall ARKO gets a fundamental rating of 3 out of 10. We evaluated ARKO against 122 industry peers in the Specialty Retail industry. ARKO has an average financial health and profitability rating. ARKO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ARKO was profitable.
In the past year ARKO had a positive cash flow from operations.
Each year in the past 5 years ARKO has been profitable.
Each year in the past 5 years ARKO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.08%, ARKO perfoms like the industry average, outperforming 48.36% of the companies in the same industry.
ARKO's Return On Equity of 0.85% is in line compared to the rest of the industry. ARKO outperforms 57.38% of its industry peers.
ARKO has a Return On Invested Capital of 2.35%. This is comparable to the rest of the industry: ARKO outperforms 46.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARKO is significantly below the industry average of 12.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.08% | ||
| ROE | 0.85% | ||
| ROIC | 2.35% |
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 has a Profit Margin (0.04%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ARKO has declined.
With a Operating Margin value of 1.15%, ARKO perfoms like the industry average, outperforming 46.72% of the companies in the same industry.
In the last couple of years the Operating Margin of ARKO has grown nicely.
ARKO has a worse Gross Margin (14.71%) than 88.52% 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) | 0.04% | ||
| GM | 14.71% |
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
ARKO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARKO has less shares outstanding
The number of shares outstanding for ARKO has been reduced compared to 5 years ago.
Compared to 1 year ago, ARKO has a worse debt to assets ratio.
2.2 Solvency
ARKO has an Altman-Z score of 2.66. This is not the best score and indicates that ARKO is in the grey zone with still only limited risk for bankruptcy at the moment.
ARKO has a Altman-Z score of 2.66. This is comparable to the rest of the industry: ARKO outperforms 59.84% of its industry peers.
ARKO has a debt to FCF ratio of 7.84. This is a slightly negative value and a sign of low solvency as ARKO would need 7.84 years to pay back of all of its debts.
ARKO has a Debt to FCF ratio (7.84) which is comparable to the rest of the industry.
ARKO has a Debt/Equity ratio of 3.03. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.03, ARKO is not doing good in the industry: 75.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.03 | ||
| Debt/FCF | 7.84 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.25
WACC9.51%
2.3 Liquidity
ARKO has a Current Ratio of 1.55. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
ARKO has a Current ratio of 1.55. This is in the better half of the industry: ARKO outperforms 65.57% of its industry peers.
ARKO has a Quick Ratio of 1.08. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
ARKO has a Quick ratio of 1.08. This is in the better half of the industry: ARKO outperforms 77.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for ARKO have decreased strongly by -88.46% in the last year.
The earnings per share for ARKO have been decreasing by -33.40% on average. This is quite bad
Looking at the last year, ARKO shows a decrease in Revenue. The Revenue has decreased by -9.67% 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)-88.46%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%-500%
Revenue 1Y (TTM)-9.67%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-11.75%
3.2 Future
The Earnings Per Share is expected to decrease by -16.62% on average over the next years. This is quite bad
Based on estimates for the next years, ARKO will show a decrease in Revenue. The Revenue will decrease by -3.48% on average per year.
EPS Next Y-16.31%
EPS Next 2Y-43.98%
EPS Next 3Y-30.75%
EPS Next 5Y-16.62%
Revenue Next Year-11.83%
Revenue Next 2Y-7.31%
Revenue Next 3Y-5%
Revenue Next 5Y-3.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
ARKO is valuated quite expensively with a Price/Earnings ratio of 153.00.
Compared to the rest of the industry, the Price/Earnings ratio of ARKO is on the same level as its industry peers.
ARKO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 112.50, which means the current valuation is very expensive for ARKO.
Based on the Price/Forward Earnings ratio, ARKO is valued a bit more expensive than the industry average as 63.11% of the companies are valued more cheaply.
ARKO is valuated expensively when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153 | ||
| Fwd PE | 112.5 |
4.2 Price Multiples
80.33% of the companies in the same industry are more expensive than ARKO, based on the Enterprise Value to EBITDA ratio.
96.72% of the companies in the same industry are more expensive than ARKO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.72 | ||
| EV/EBITDA | 5.75 |
4.3 Compensation for Growth
ARKO's earnings are expected to decrease with -30.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.98%
EPS Next 3Y-30.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.64%, ARKO has a reasonable but not impressive dividend return.
ARKO's Dividend Yield is rather good when compared to the industry average which is at 4.90. ARKO pays more dividend than 86.89% of the companies in the same industry.
ARKO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 652.77% of its income as dividend. This is not a sustainable payout ratio.
DP652.77%
EPS Next 2Y-43.98%
EPS Next 3Y-30.75%
4.59
+0.05 (+1.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners58.42%
Inst Owner Change0%
Ins Owners11.76%
Ins Owner Change1.86%
Market Cap523.03M
Analysts80
Price Target7.01 (52.72%)
Short Float %6.97%
Short Ratio8.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP652.77%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-230.68%
Min EPS beat(2)-492.16%
Max EPS beat(2)30.8%
EPS beat(4)2
Avg EPS beat(4)-105.8%
Min EPS beat(4)-492.16%
Max EPS beat(4)79.74%
EPS beat(8)4
Avg EPS beat(8)-56.44%
EPS beat(12)5
Avg EPS beat(12)-52.54%
EPS beat(16)6
Avg EPS beat(16)-43.03%
Revenue beat(2)0
Avg Revenue beat(2)-5.62%
Min Revenue beat(2)-8.37%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-4.85%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-0.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.31%
Revenue beat(12)3
Avg Revenue beat(12)-3.04%
Revenue beat(16)5
Avg Revenue beat(16)-2.77%
PT rev (1m)0%
PT rev (3m)-5.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.15%
EPS NY rev (1m)39.13%
EPS NY rev (3m)137.04%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153 | ||
| Fwd PE | 112.5 | ||
| P/S | 0.06 | ||
| P/FCF | 3.72 | ||
| P/OCF | 2.07 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.75 |
EPS(TTM)0.03
EY0.65%
EPS(NY)0.04
Fwd EY0.89%
FCF(TTM)1.23
FCFY26.85%
OCF(TTM)2.22
OCFY48.28%
SpS74.49
BVpS3.12
TBVpS-1.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.08% | ||
| ROE | 0.85% | ||
| ROCE | 3.11% | ||
| ROIC | 2.35% | ||
| ROICexc | 2.57% | ||
| ROICexgc | 3.08% | ||
| OM | 1.15% | ||
| PM (TTM) | 0.04% | ||
| GM | 14.71% | ||
| FCFM | 1.65% |
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%
ROICexcg growth 3Y-17.3%
ROICexcg 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-Score6
Asset Turnover2.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.03 | ||
| Debt/FCF | 7.84 | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 82.66% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 1.07 | ||
| Cash Conversion | 108.28% | ||
| Profit Quality | 4660.7% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.66 |
F-Score6
WACC9.51%
ROIC/WACC0.25
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)-88.46%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%-500%
EPS Next Y-16.31%
EPS Next 2Y-43.98%
EPS Next 3Y-30.75%
EPS Next 5Y-16.62%
Revenue 1Y (TTM)-9.67%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-11.75%
Revenue Next Year-11.83%
Revenue Next 2Y-7.31%
Revenue Next 3Y-5%
Revenue Next 5Y-3.48%
EBIT growth 1Y-27.2%
EBIT growth 3Y-9.31%
EBIT growth 5Y141.14%
EBIT Next Year135.49%
EBIT Next 3Y32.83%
EBIT Next 5Y17.63%
FCF growth 1Y50.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y29.42%
OCF growth 3Y11.7%
OCF growth 5Y38.65%