4.64 USD
-0.03 (-0.64%)
4.64 USD
0 (0%)
Taking everything into account, ARKO scores 4 out of 10 in our fundamental rating. ARKO was compared to 123 industry peers in the Specialty Retail industry. Both the profitability and the financial health of ARKO get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year ARKO had a positive cash flow from operations.
In the past 5 years ARKO has always been profitable.
In the past 5 years ARKO always reported a positive cash flow from operatings.
1.2 Ratios
ARKO has a Return On Assets (0.36%) which is comparable to the rest of the 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 45.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARKO is significantly below the industry average of 12.14%.
| 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 51.22% of the companies in the same 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.
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.
In the last couple of years the Gross Margin of ARKO has remained more or less at the same level.
| 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.
Compared to 1 year ago, ARKO has less shares outstanding
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
ARKO has an Altman-Z score of 2.50. This is not the best score and indicates that ARKO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.50, ARKO perfoms like the industry average, outperforming 54.47% of the companies in the same 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 has a Debt to FCF ratio of 30.42. This is comparable to the rest of the industry: ARKO outperforms 46.34% 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.
Looking at the Debt to Equity ratio, with a value of 2.88, ARKO is doing worse than 73.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.23
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.62 indicates that ARKO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.62, ARKO is doing good in the industry, outperforming 65.85% 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.
The Quick ratio of ARKO (1.18) is better than 78.86% 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%.
ARKO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.40% yearly.
Looking at the last year, ARKO shows a very negative growth in Revenue. The Revenue has decreased by -12.61% in the last year.
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
Based on estimates for the next years, ARKO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.50% on average per year.
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 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
ARKO is valuated quite expensively with a Price/Earnings ratio of 42.18.
Compared to the rest of the industry, the Price/Earnings ratio of ARKO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.92. ARKO is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 37.91, ARKO can be considered very expensive at the moment.
ARKO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, ARKO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.18 | ||
| Fwd PE | 37.91 |
4.2 Price Multiples
80.49% of the companies in the same industry are more expensive than ARKO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ARKO is valued a bit cheaper than 78.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 5.92 |
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
ARKO has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
ARKO's Dividend Yield is rather good when compared to the industry average which is at 2.01. ARKO pays more dividend than 84.55% of the companies in the same industry.
ARKO's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 3Y3.18%
4.64
-0.03 (-0.64%)
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 Cap517.04M
Revenue(TTM)7.84B
Net Income(TTM)12.84M
Analysts82.22
Price Target7.48 (61.21%)
Short Float %3.36%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 | 42.18 | ||
| Fwd PE | 37.91 | ||
| P/S | 0.07 | ||
| P/FCF | 13.99 | ||
| P/OCF | 3.03 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.92 |
EPS(TTM)0.11
EY2.37%
EPS(NY)0.12
Fwd EY2.64%
FCF(TTM)0.33
FCFY7.15%
OCF(TTM)1.53
OCFY33.02%
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 | 2.5 |
F-Score5
WACC9.42%
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.