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ARKO CORP (ARKO) Stock Fundamental Analysis

NASDAQ:ARKO - Nasdaq - US0412421085 - Common Stock - Currency: USD

7.55  -0.2 (-2.58%)

Premarket: 6.4 -1.15 (-15.23%)

Fundamental Rating

4

ARKO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. ARKO has only an average score on both its financial health and profitability. While showing a medium growth rate, ARKO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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4

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.
ARKO had positive earnings in 4 of the past 5 years.
In the past 5 years ARKO always reported a positive cash flow from operatings.
ARKO Yearly Net Income VS EBIT VS OCF VS FCFARKO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M 200M

1.2 Ratios

With a Return On Assets value of 0.50%, ARKO perfoms like the industry average, outperforming 49.15% of the companies in the same industry.
ARKO has a Return On Equity of 4.86%. This is in the better half of the industry: ARKO outperforms 60.17% of its industry peers.
ARKO has a Return On Invested Capital (2.81%) which is comparable to the rest of the industry.
ARKO had an Average Return On Invested Capital over the past 3 years of 3.81%. This is significantly below the industry average of 12.33%.
Industry RankSector Rank
ROA 0.5%
ROE 4.86%
ROIC 2.81%
ROA(3y)1.54%
ROA(5y)0.53%
ROE(3y)13.36%
ROE(5y)-4.55%
ROIC(3y)3.81%
ROIC(5y)2.78%
ARKO Yearly ROA, ROE, ROICARKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60

1.3 Margins

ARKO's Profit Margin of 0.21% is in line compared to the rest of the industry. ARKO outperforms 49.15% of its industry peers.
In the last couple of years the Profit Margin of ARKO has grown nicely.
Looking at the Operating Margin, with a value of 1.43%, ARKO is in line with its industry, outperforming 44.92% of the companies in the same industry.
ARKO's Operating Margin has improved in the last couple of years.
ARKO has a worse Gross Margin (14.38%) than 89.83% of its industry peers.
In the last couple of years the Gross Margin of ARKO has declined.
Industry RankSector Rank
OM 1.43%
PM (TTM) 0.21%
GM 14.38%
OM growth 3Y-7.87%
OM growth 5Y12.13%
PM growth 3Y5.44%
PM growth 5Y2.36%
GM growth 3Y-11.57%
GM growth 5Y-1.94%
ARKO Yearly Profit, Operating, Gross MarginsARKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

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5

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.
The number of shares outstanding for ARKO has been reduced compared to 1 year ago.
ARKO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARKO has an improved debt to assets ratio.
ARKO Yearly Shares OutstandingARKO Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
ARKO Yearly Total Debt VS Total AssetsARKO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.84 indicates that ARKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.84, ARKO is doing good in the industry, outperforming 62.71% of the companies in the same industry.
The Debt to FCF ratio of ARKO is 7.74, which is on the high side as it means it would take ARKO, 7.74 years of fcf income to pay off all of its debts.
ARKO has a Debt to FCF ratio (7.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.84 is on the high side and indicates that ARKO has dependencies on debt financing.
ARKO has a worse Debt to Equity ratio (2.84) than 72.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.84
Debt/FCF 7.74
Altman-Z 2.84
ROIC/WACC0.28
WACC9.93%
ARKO Yearly LT Debt VS Equity VS FCFARKO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.63 indicates that ARKO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.63, ARKO is doing good in the industry, outperforming 69.49% of the companies in the same industry.
ARKO has a Quick Ratio of 1.13. 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 Quick ratio of 1.13. This is in the better half of the industry: ARKO outperforms 77.12% of its industry peers.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.13
ARKO Yearly Current Assets VS Current LiabilitesARKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M

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4

3. Growth

3.1 Past

The earnings per share for ARKO have decreased strongly by -52.94% in the last year.
The Earnings Per Share has been growing by 21.60% on average over the past years. This is a very strong growth
Looking at the last year, ARKO shows a decrease in Revenue. The Revenue has decreased by -4.13% in the last year.
ARKO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.29% yearly.
EPS 1Y (TTM)-52.94%
EPS 3Y16.84%
EPS 5Y21.6%
EPS Q2Q%-58.82%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y32.9%
Revenue growth 5Y18.29%
Sales Q2Q%-13.07%

3.2 Future

Based on estimates for the next years, ARKO will show a very strong growth in Earnings Per Share. The EPS will grow by 54.60% on average per year.
The Revenue is expected to decrease by -2.60% on average over the next years.
EPS Next Y-31.66%
EPS Next 2Y-7.44%
EPS Next 3Y4.54%
EPS Next 5Y54.6%
Revenue Next Year-8.19%
Revenue Next 2Y-6.17%
Revenue Next 3Y-4.14%
Revenue Next 5Y-2.6%

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.
ARKO Yearly Revenue VS EstimatesARKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
ARKO Yearly EPS VS EstimatesARKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 47.19 indicates a quite expensive valuation of ARKO.
ARKO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.62, ARKO is valued quite expensively.
The Price/Forward Earnings ratio is 35.25, which means the current valuation is very expensive for ARKO.
The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
ARKO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 47.19
Fwd PE 35.25
ARKO Price Earnings VS Forward Price EarningsARKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ARKO is valued cheaply inside the industry as 80.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARKO is valued cheaply inside the industry as 94.92% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.11
EV/EBITDA 6.48
ARKO Per share dataARKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.18
EPS Next 2Y-7.44%
EPS Next 3Y4.54%

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2

5. Dividend

5.1 Amount

ARKO has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 4.32, ARKO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, ARKO is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.55%

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 Years1
Div Non Decr Years2
ARKO Yearly Dividends per shareARKO Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

107.05% of the earnings are spent on dividend by ARKO. This is not a sustainable payout ratio.
DP107.05%
EPS Next 2Y-7.44%
EPS Next 3Y4.54%
ARKO Yearly Income VS Free CF VS DividendARKO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M
ARKO Dividend Payout.ARKO Dividend Payout, showing the Payout Ratio.ARKO Dividend Payout.PayoutRetained Earnings

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ARKO CORP

NASDAQ:ARKO (2/21/2025, 8:01:42 PM)

Premarket: 6.4 -1.15 (-15.23%)

7.55

-0.2 (-2.58%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners56.23%
Inst Owner Change-90.56%
Ins Owners11.06%
Ins Owner Change0%
Market Cap874.06M
Analysts82
Price Target8.1 (7.28%)
Short Float %3.3%
Short Ratio6.95
Dividend
Industry RankSector Rank
Dividend Yield 1.55%
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP107.05%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)19.07%
Min EPS beat(2)-41.59%
Max EPS beat(2)79.74%
EPS beat(4)2
Avg EPS beat(4)7.15%
Min EPS beat(4)-100%
Max EPS beat(4)90.44%
EPS beat(8)3
Avg EPS beat(8)-18.56%
EPS beat(12)4
Avg EPS beat(12)-19.95%
EPS beat(16)6
Avg EPS beat(16)-203.07%
Revenue beat(2)0
Avg Revenue beat(2)-4.09%
Min Revenue beat(2)-7.35%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-5.07%
Min Revenue beat(4)-9.88%
Max Revenue beat(4)-0.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.02%
Revenue beat(12)4
Avg Revenue beat(12)-2.35%
Revenue beat(16)6
Avg Revenue beat(16)-2.08%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.66%
Valuation
Industry RankSector Rank
PE 47.19
Fwd PE 35.25
P/S 0.1
P/FCF 6.11
P/OCF 3.41
P/B 2.3
P/tB N/A
EV/EBITDA 6.48
EPS(TTM)0.16
EY2.12%
EPS(NY)0.21
Fwd EY2.84%
FCF(TTM)1.24
FCFY16.36%
OCF(TTM)2.21
OCFY29.34%
SpS77.51
BVpS3.28
TBVpS-0.93
PEG (NY)N/A
PEG (5Y)2.18
Profitability
Industry RankSector Rank
ROA 0.5%
ROE 4.86%
ROCE 3.99%
ROIC 2.81%
ROICexc 3.1%
ROICexgc 3.72%
OM 1.43%
PM (TTM) 0.21%
GM 14.38%
FCFM 1.59%
ROA(3y)1.54%
ROA(5y)0.53%
ROE(3y)13.36%
ROE(5y)-4.55%
ROIC(3y)3.81%
ROIC(5y)2.78%
ROICexc(3y)4.24%
ROICexc(5y)3.11%
ROICexgc(3y)5.11%
ROICexgc(5y)3.76%
ROCE(3y)5.4%
ROCE(5y)3.94%
ROICexcg growth 3Y7.9%
ROICexcg growth 5Y-0.36%
ROICexc growth 3Y8.7%
ROICexc growth 5Y0.06%
OM growth 3Y-7.87%
OM growth 5Y12.13%
PM growth 3Y5.44%
PM growth 5Y2.36%
GM growth 3Y-11.57%
GM growth 5Y-1.94%
F-Score6
Asset Turnover2.43
Health
Industry RankSector Rank
Debt/Equity 2.84
Debt/FCF 7.74
Debt/EBITDA 4.17
Cap/Depr 86.48%
Cap/Sales 1.26%
Interest Coverage 1.4
Cash Conversion 98.97%
Profit Quality 774.54%
Current Ratio 1.63
Quick Ratio 1.13
Altman-Z 2.84
F-Score6
WACC9.93%
ROIC/WACC0.28
Cap/Depr(3y)139.08%
Cap/Depr(5y)114.15%
Cap/Sales(3y)1.77%
Cap/Sales(5y)1.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-52.94%
EPS 3Y16.84%
EPS 5Y21.6%
EPS Q2Q%-58.82%
EPS Next Y-31.66%
EPS Next 2Y-7.44%
EPS Next 3Y4.54%
EPS Next 5Y54.6%
Revenue 1Y (TTM)-4.13%
Revenue growth 3Y32.9%
Revenue growth 5Y18.29%
Sales Q2Q%-13.07%
Revenue Next Year-8.19%
Revenue Next 2Y-6.17%
Revenue Next 3Y-4.14%
Revenue Next 5Y-2.6%
EBIT growth 1Y-12.35%
EBIT growth 3Y22.43%
EBIT growth 5Y32.64%
EBIT Next Year104.54%
EBIT Next 3Y28.02%
EBIT Next 5Y20.15%
FCF growth 1Y299.21%
FCF growth 3Y-42.23%
FCF growth 5Y29.25%
OCF growth 1Y42.85%
OCF growth 3Y-7.83%
OCF growth 5Y18.4%