5.17 USD
-0.07 (-1.34%)
5.16 USD
-0.01 (-0.19%)
Taking everything into account, ARKO scores 4 out of 10 in our fundamental rating. ARKO was compared to 121 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
- ARKO's Return On Assets of 0.36% is in line compared to the rest of the industry. ARKO outperforms 51.24% of its industry peers.
- The Return On Equity of ARKO (3.44%) is comparable to the rest of the industry.
- ARKO has a Return On Invested Capital (2.13%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ARKO is significantly below the industry average of 12.37%.
| 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 51.24% of the companies in the same industry.
- ARKO's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 1.12%, ARKO perfoms like the industry average, outperforming 42.98% of the companies in the same industry.
- In the last couple of years the Operating Margin of ARKO has grown nicely.
- ARKO has a Gross Margin of 15.23%. This is amonst the worse of the industry: ARKO underperforms 85.12% of its industry peers.
- In the last couple of years the Gross Margin of ARKO has remained more or less at the same level.
| 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
- ARKO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, ARKO has a worse debt to assets ratio.
2.2 Solvency
- ARKO has an Altman-Z score of 2.51. 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.
- The Altman-Z score of ARKO (2.51) is comparable to the rest of the 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.
- A Debt/Equity ratio of 2.88 is on the high side and indicates that ARKO has dependencies on debt financing.
- ARKO's Debt to Equity ratio of 2.88 is on the low side compared to the rest of the industry. ARKO is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.22
WACC9.68%
2.3 Liquidity
- A Current Ratio of 1.62 indicates that ARKO should not have too much problems paying its short term obligations.
- ARKO has a better Current ratio (1.62) than 66.94% of its industry peers.
- A Quick Ratio of 1.18 indicates that ARKO should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.18, ARKO is doing good in the industry, outperforming 79.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- ARKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.25%.
- The earnings per share for ARKO have been decreasing by -33.40% on average. This is quite bad
- ARKO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.61%.
- 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)-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
- ARKO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.50% yearly.
- ARKO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.54% yearly.
EPS Next Y37.31%
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
EPS Next 5Y10.5%
Revenue Next Year-13.63%
Revenue Next 2Y-9.36%
Revenue Next 3Y-6.48%
Revenue Next 5Y-3.54%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- ARKO is valuated quite expensively with a Price/Earnings ratio of 47.00.
- 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 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 42.24, which means the current valuation is very expensive for ARKO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARKO is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. ARKO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47 | ||
| Fwd PE | 42.24 |
4.2 Price Multiples
- 81.82% of the companies in the same industry are more expensive than ARKO, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARKO indicates a somewhat cheap valuation: ARKO is cheaper than 76.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.35%, ARKO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.08, ARKO pays a better dividend. On top of this ARKO pays more dividend than 80.99% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ARKO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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
- ARKO pays out 151.91% of its income as dividend. This is not a sustainable payout ratio.
DP151.91%
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
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.
Can you provide the valuation status for ARKO CORP?
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.
What are the PE and PB ratios of ARKO CORP (ARKO) stock?
The Price/Earnings (PE) ratio for ARKO CORP (ARKO) is 47 and the Price/Book (PB) ratio is 1.54.
What is the earnings growth outlook for ARKO CORP?
The Earnings per Share (EPS) of ARKO CORP (ARKO) is expected to grow by 37.31% in the next year.