4.76 USD
0 (0%)
4.86 USD
+0.1 (+2.1%)
ARKO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. ARKO has only an average score on both its financial health and profitability. 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.
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
The Return On Assets of ARKO (0.36%) is comparable to the rest of the industry.
The Return On Equity of ARKO (3.44%) is better than 60.66% of its industry peers.
With a Return On Invested Capital value of 2.13%, ARKO perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARKO is significantly below the industry average of 11.71%.
| 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
Looking at the Profit Margin, with a value of 0.16%, ARKO is in line with its industry, outperforming 51.64% 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 (1.12%) which is in line with 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 86.07% 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.
Compared to 1 year ago, ARKO has less shares outstanding
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 2.50 indicates that ARKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ARKO (2.50) 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's Debt to FCF ratio of 30.42 is in line compared to the rest of the industry. ARKO outperforms 49.18% 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 | 2.5 |
ROIC/WACC0.23
WACC9.45%
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.
With a decent Current ratio value of 1.62, ARKO is doing good in the industry, outperforming 69.67% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that ARKO should not have too much problems paying its short term obligations.
ARKO has a better Quick ratio (1.18) than 81.15% 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.
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%.
ARKO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.16% yearly.
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 8.31% on average over the next years. This is quite good.
ARKO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.17% yearly.
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
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
With a Price/Earnings ratio of 43.27, ARKO can be considered very expensive at the moment.
ARKO's Price/Earnings is on the same level as the industry average.
ARKO is valuated expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.90, which means the current valuation is very expensive for ARKO.
The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
When comparing the Price/Forward Earnings ratio of ARKO to the average of the S&P500 Index (36.59), we can say ARKO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.27 | ||
| Fwd PE | 35.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARKO is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARKO is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.52 | ||
| EV/EBITDA | 6.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A cheap valuation may be justified as ARKO's earnings are expected to decrease with -26.79% in the coming years.
PEG (NY)1.69
PEG (5Y)N/A
EPS Next 2Y1%
EPS Next 3Y-26.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.70%, ARKO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.02, ARKO pays a better dividend. On top of this ARKO pays more dividend than 86.07% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ARKO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 151.91% of its income as dividend. This is not a sustainable payout ratio.
DP151.91%
EPS Next 2Y1%
EPS Next 3Y-26.79%
4.76
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners56.79%
Inst Owner Change1.46%
Ins Owners11.88%
Ins Owner Change0.41%
Market Cap536.64M
Revenue(TTM)7.84B
Net Income(TTM)12.84M
Analysts82.22
Price Target7.48 (57.14%)
Short Float %3.84%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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)10.69%
PT rev (3m)10.69%
EPS NQ rev (1m)50%
EPS NQ rev (3m)25.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.27 | ||
| Fwd PE | 35.9 | ||
| P/S | 0.07 | ||
| P/FCF | 14.52 | ||
| P/OCF | 3.14 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.01 |
EPS(TTM)0.11
EY2.31%
EPS(NY)0.13
Fwd EY2.79%
FCF(TTM)0.33
FCFY6.89%
OCF(TTM)1.51
OCFY31.82%
SpS69.55
BVpS3.31
TBVpS-0.82
PEG (NY)1.69
PEG (5Y)N/A
Graham Number2.86
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
WACC9.45%
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 Y25.54%
EPS Next 2Y1%
EPS Next 3Y-26.79%
EPS Next 5Y8.31%
Revenue 1Y (TTM)-12.61%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-11.34%
Revenue Next Year-13.74%
Revenue Next 2Y-7.76%
Revenue Next 3Y-5.15%
Revenue Next 5Y-2.17%
EBIT growth 1Y-30.82%
EBIT growth 3Y-9.31%
EBIT growth 5Y141.14%
EBIT Next Year140.69%
EBIT Next 3Y36.31%
EBIT Next 5Y21.69%
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 25.54% in the next year.