5.13 USD
-0.04 (-0.77%)
5.13 USD
0 (0%)
Overall ARKO gets a fundamental rating of 4 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 is valued expensive and it does not seem to be growing.
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 50.82% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 3.44%, ARKO is in line with its industry, outperforming 59.02% of the companies in the same industry.
- ARKO has a Return On Invested Capital (2.13%) which is comparable to the rest of the industry.
- ARKO had an Average Return On Invested Capital over the past 3 years of 3.40%. This is significantly below the industry average of 12.24%.
| 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
- ARKO has a Profit Margin (0.16%) which is comparable to the rest of the industry.
- ARKO's Profit Margin has declined in the last couple of years.
- ARKO has a Operating Margin (1.12%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ARKO has grown nicely.
- The Gross Margin of ARKO (15.23%) is worse than 85.25% of its industry peers.
- 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.
- The number of shares outstanding for ARKO has been reduced compared to 1 year ago.
- Compared to 5 years ago, ARKO has less shares outstanding
- Compared to 1 year ago, ARKO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.51 indicates that ARKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARKO has a Altman-Z score (2.51) which is in line with its industry peers.
- 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 of 30.42. This is comparable to the rest of the industry: ARKO outperforms 45.08% of its industry peers.
- ARKO has a Debt/Equity ratio of 2.88. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ARKO (2.88) is worse than 72.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.22
WACC9.66%
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.
- ARKO's Current ratio of 1.62 is fine compared to the rest of the industry. ARKO outperforms 66.39% of its industry peers.
- ARKO has a Quick Ratio of 1.18. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
- ARKO's Quick ratio of 1.18 is fine compared to the rest of the industry. ARKO outperforms 79.51% of its industry peers.
| 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%.
- 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 Y2%
EPS Next 2Y-2.97%
EPS Next 3Y12.2%
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
- A Price/Earnings ratio of 46.64 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 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 41.91 indicates a quite expensive valuation of ARKO.
- The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ARKO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.64 | ||
| Fwd PE | 41.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARKO is valued cheaply inside the industry as 81.97% of the companies are valued more expensively.
- ARKO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARKO is cheaper than 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 6.16 |
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 more expensive valuation may be justified as ARKO's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)23.32
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.32%, ARKO has a reasonable but not impressive dividend return.
- ARKO's Dividend Yield is a higher than the industry average which is at 2.15.
- ARKO's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 3Y12.2%
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 46.64 and the Price/Book (PB) ratio is 1.53.
What is the earnings growth outlook for ARKO CORP?
The Earnings per Share (EPS) of ARKO CORP (ARKO) is expected to grow by 2% in the next year.