4.605 USD
-0.03 (-0.75%)
We assign a fundamental rating of 4 out of 10 to ARKO. ARKO was compared to 123 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.
In the past year ARKO had a positive cash flow from operations.
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
With a Return On Assets value of 0.36%, ARKO perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
ARKO's Return On Equity of 3.44% is in line compared to the rest of the industry. ARKO outperforms 59.35% of its industry peers.
The Return On Invested Capital of ARKO (2.13%) 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 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | 3.44% | ||
| ROIC | 2.13% |
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
With a Profit Margin value of 0.16%, ARKO perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
In the last couple of years the Profit Margin of ARKO has declined.
ARKO has a Operating Margin of 1.12%. This is comparable to the rest of the industry: ARKO outperforms 42.28% of its industry peers.
In the last couple of years the Operating Margin of ARKO has grown nicely.
Looking at the Gross Margin, with a value of 15.23%, ARKO is doing worse than 86.18% of the companies in the same industry.
ARKO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.12% | ||
| PM (TTM) | 0.16% | ||
| GM | 15.23% |
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
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.
Compared to 5 years ago, ARKO has less shares outstanding
The debt/assets ratio for ARKO is higher compared to a year ago.
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.
With a Altman-Z score value of 2.50, ARKO perfoms like the industry average, outperforming 54.47% of the companies in the same industry.
ARKO has a debt to FCF ratio of 30.42. This is a negative value and a sign of low solvency as ARKO would need 30.42 years to pay back of all of its debts.
ARKO has a Debt to FCF ratio (30.42) which is in line with its industry peers.
ARKO has a Debt/Equity ratio of 2.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.88, ARKO is not doing good in the industry: 73.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.23
WACC9.42%
2.3 Liquidity
ARKO has a Current Ratio of 1.62. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARKO (1.62) is better than 65.85% of its industry peers.
A Quick Ratio of 1.18 indicates that ARKO should not have too much problems paying its short term obligations.
ARKO has a Quick ratio of 1.18. This is in the better half of the industry: ARKO outperforms 78.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for ARKO have decreased strongly by -31.25% 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.
The Revenue for ARKO has decreased by -12.61% in the past year. This is quite bad
The Revenue has been growing by 16.16% on average over the past years. This is quite good.
EPS 1Y (TTM)-31.25%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)-12.61%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-11.34%
3.2 Future
The Earnings Per Share is expected to grow by 10.50% 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 -3.54% on average per year.
EPS Next Y37.31%
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
EPS Next 5Y10.5%
Revenue Next Year-13.58%
Revenue Next 2Y-9.39%
Revenue Next 3Y-6.28%
Revenue Next 5Y-3.54%
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
Based on the Price/Earnings ratio of 41.86, the valuation of ARKO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ARKO.
ARKO is valuated expensively when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 37.62, which means the current valuation is very expensive for ARKO.
ARKO's Price/Forward Earnings ratio is in line with the industry average.
ARKO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.86 | ||
| Fwd PE | 37.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARKO is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARKO is valued a bit cheaper than 78.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
ARKO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, ARKO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.01, ARKO pays a better dividend. On top of this ARKO pays more dividend than 84.55% of the companies listed in the same industry.
ARKO's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
ARKO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
151.91% of the earnings are spent on dividend by ARKO. This is not a sustainable payout ratio.
DP151.91%
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
NASDAQ:ARKO (12/29/2025, 2:29:54 PM)
4.605
-0.03 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners57.56%
Inst Owner Change1.47%
Ins Owners12.03%
Ins Owner Change0.62%
Market Cap513.14M
Revenue(TTM)7.84B
Net Income(TTM)12.84M
Analysts82.22
Price Target7.48 (62.43%)
Short Float %3.36%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP151.91%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.19%
Min EPS beat(2)-14.75%
Max EPS beat(2)65.12%
EPS beat(4)2
Avg EPS beat(4)-102.75%
Min EPS beat(4)-492.16%
Max EPS beat(4)65.12%
EPS beat(8)4
Avg EPS beat(8)-47.8%
EPS beat(12)5
Avg EPS beat(12)-46.62%
EPS beat(16)6
Avg EPS beat(16)-40.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-4%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-4.54%
Revenue beat(12)2
Avg Revenue beat(12)-3.35%
Revenue beat(16)4
Avg Revenue beat(16)-2.76%
PT rev (1m)0%
PT rev (3m)10.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.04%
EPS NY rev (1m)9.38%
EPS NY rev (3m)9.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.86 | ||
| Fwd PE | 37.62 | ||
| P/S | 0.07 | ||
| P/FCF | 13.88 | ||
| P/OCF | 3.01 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.92 |
EPS(TTM)0.11
EY2.39%
EPS(NY)0.12
Fwd EY2.66%
FCF(TTM)0.33
FCFY7.2%
OCF(TTM)1.53
OCFY33.27%
SpS70.37
BVpS3.35
TBVpS-0.83
PEG (NY)1.12
PEG (5Y)N/A
Graham Number2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.36% | ||
| ROE | 3.44% | ||
| ROCE | 2.82% | ||
| ROIC | 2.13% | ||
| ROICexc | 2.37% | ||
| ROICexgc | 2.84% | ||
| OM | 1.12% | ||
| PM (TTM) | 0.16% | ||
| GM | 15.23% | ||
| FCFM | 0.47% |
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 Turnover2.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Debt/EBITDA | 4.81 | ||
| Cap/Depr | 98.78% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 0.99 | ||
| Cash Conversion | 76.44% | ||
| Profit Quality | 287.85% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.5 |
F-Score5
WACC9.42%
ROIC/WACC0.23
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)-31.25%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y37.31%
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
EPS Next 5Y10.5%
Revenue 1Y (TTM)-12.61%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-11.34%
Revenue Next Year-13.58%
Revenue Next 2Y-9.39%
Revenue Next 3Y-6.28%
Revenue Next 5Y-3.54%
EBIT growth 1Y-30.82%
EBIT growth 3Y-9.31%
EBIT growth 5Y141.14%
EBIT Next Year135.42%
EBIT Next 3Y35.35%
EBIT Next 5Y21.32%
FCF growth 1Y-21.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.13%
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 37.31% in the next year.