4.65 USD
-0.28 (-5.68%)
4.65 USD
0 (0%)
ARKO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 123 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
In the past year ARKO was profitable.
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
ARKO has a Return On Assets (0.36%) which is in line with its industry peers.
ARKO's Return On Equity of 3.44% is in line compared to the rest of the industry. ARKO outperforms 58.54% of its industry peers.
ARKO's Return On Invested Capital of 2.13% is in line compared to the rest of the industry. ARKO outperforms 45.53% of its industry peers.
ARKO had an Average Return On Invested Capital over the past 3 years of 3.40%. This is significantly below the industry average of 12.18%.
| 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 in line with its industry peers.
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.
ARKO's Operating Margin has improved in the last couple of years.
ARKO's Gross Margin of 15.23% is on the low side compared to the rest of the industry. ARKO is outperformed by 86.18% 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.
ARKO has less shares outstanding than it did 1 year ago.
ARKO has less shares outstanding than it did 5 years ago.
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.
The Debt to FCF ratio of ARKO is 30.42, which is on the high side as it means it would take ARKO, 30.42 years of fcf income to pay off all of its debts.
ARKO has a Debt to FCF ratio (30.42) which is comparable to the rest of the industry.
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 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.23
WACC9.43%
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 has a better Current ratio (1.62) than 65.85% 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 has a better Quick ratio (1.18) than 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.
ARKO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.40% yearly.
The Revenue for ARKO has decreased by -12.61% in the past year. This is quite bad
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-13.58%
Revenue Next 2Y-9.39%
Revenue Next 3Y-6.28%
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
The Price/Earnings ratio is 42.27, which means the current valuation is very expensive for 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 26.39, which is the current average of the S&P500 Index.
ARKO is valuated quite expensively with a Price/Forward Earnings ratio of 37.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARKO is on the same level as its industry peers.
ARKO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.27 | ||
| Fwd PE | 37.99 |
4.2 Price Multiples
79.67% of the companies in the same industry are more expensive than ARKO, based on the Enterprise Value to EBITDA ratio.
ARKO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARKO is cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 6.06 |
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)1.13
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, ARKO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.98, ARKO pays a better dividend. On top of this ARKO pays more dividend than 83.74% of the companies listed in the same industry.
ARKO's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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%
4.65
-0.28 (-5.68%)
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 Cap518.15M
Revenue(TTM)7.84B
Net Income(TTM)12.84M
Analysts82.22
Price Target7.48 (60.86%)
Short Float %3.36%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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 | 42.27 | ||
| Fwd PE | 37.99 | ||
| P/S | 0.07 | ||
| P/FCF | 14.02 | ||
| P/OCF | 3.03 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.06 |
EPS(TTM)0.11
EY2.37%
EPS(NY)0.12
Fwd EY2.63%
FCF(TTM)0.33
FCFY7.13%
OCF(TTM)1.53
OCFY32.95%
SpS70.37
BVpS3.35
TBVpS-0.83
PEG (NY)1.13
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 | 2.51 |
F-Score5
WACC9.43%
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.