5.31 USD
+0.09 (+1.72%)
At close: Jan 30, 2026
5.31 USD
0 (0%)
After Hours: 1/30/2026, 8:00:01 PM
We assign a fundamental rating of 4 out of 10 to ARKO. ARKO was compared to 121 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.
- ARKO had positive earnings in each of the past 5 years.
- In the past 5 years ARKO always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.36%, ARKO perfoms like the industry average, outperforming 51.24% of the companies in the same industry.
- The Return On Equity of ARKO (3.44%) is comparable to the rest of the industry.
- ARKO's Return On Invested Capital of 2.13% is in line compared to the rest of the industry. ARKO outperforms 46.28% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ARKO is significantly below the industry average of 12.28%.
| 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.
- ARKO has a Operating Margin of 1.12%. This is comparable to the rest of the industry: ARKO outperforms 43.80% of its industry peers.
- In the last couple of years the Operating Margin of ARKO has grown nicely.
- ARKO has a worse Gross Margin (15.23%) than 85.12% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- The debt/assets ratio for ARKO is higher compared to a year ago.
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 44.63% of 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
WACC9.74%
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 66.12% of its industry peers.
- 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 79.34% 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%.
- The earnings per share for ARKO have been decreasing by -33.40% on average. This is quite bad
- 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.
- The Revenue is expected to decrease by -3.54% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 48.27, ARKO can be considered very expensive at the moment.
- ARKO's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.32. ARKO is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 43.38, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ARKO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.27 | ||
| Fwd PE | 43.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARKO is valued cheaper than 80.99% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARKO indicates a somewhat cheap valuation: ARKO is cheaper than 73.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 6.25 |
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.
- ARKO's earnings are expected to grow with 12.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)24.14
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
- ARKO has a Yearly Dividend Yield of 2.30%.
- ARKO's Dividend Yield is rather good when compared to the industry average which is at 2.20. ARKO pays more dividend than 80.17% of the companies in the same industry.
- ARKO's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 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 48.27 and the Price/Book (PB) ratio is 1.59.
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.