ARKO CORP (ARKO)
US0412421085 - Common Stock
Taking everything into account, ARKO scores 4 out of 10 in our fundamental rating. ARKO was compared to 120 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.
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.
Of the past 5 years ARKO 4 years were profitable.
Each year in the past 5 years ARKO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARKO (0.50%) is comparable to the rest of the industry.
The Return On Equity of ARKO (4.86%) is better than 61.86% of its industry peers.
ARKO has a Return On Invested Capital (2.81%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ARKO is significantly below the industry average of 12.30%.
| Industry Rank | Sector 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%
1.3 Margins
ARKO has a Profit Margin (0.21%) which is comparable to the rest of the industry.
ARKO's Profit Margin has improved in the last couple of years.
ARKO has a Operating Margin of 1.43%. This is comparable to the rest of the industry: ARKO outperforms 44.92% of its industry peers.
ARKO's Operating Margin has improved in the last couple of years.
ARKO's Gross Margin of 14.38% is on the low side compared to the rest of the industry. ARKO is outperformed by 89.83% of its industry peers.
ARKO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, ARKO has less shares outstanding
Compared to 1 year ago, ARKO has an improved debt to assets ratio.
2.2 Solvency
ARKO has an Altman-Z score of 2.82. 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.
ARKO has a better Altman-Z score (2.82) than 62.71% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.74, ARKO is in line with its industry, outperforming 55.93% of the companies in the same industry.
A Debt/Equity ratio of 2.84 is on the high side and indicates that ARKO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.84, ARKO is doing worse than 72.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 7.74 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.28
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.63 indicates that ARKO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.63, ARKO is in the better half of the industry, outperforming 69.49% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that ARKO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, ARKO is in the better half of the industry, outperforming 77.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.13 |
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
ARKO shows a decrease in Revenue. In the last year, the revenue decreased by -4.13%.
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
ARKO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.60% yearly.
The Revenue is expected to decrease by -2.60% on average over the next years.
EPS Next Y-31.66%
EPS Next 2Y-8.55%
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
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
A Price/Earnings ratio of 39.88 indicates a quite expensive valuation of ARKO.
ARKO's Price/Earnings is on the same level as the industry average.
ARKO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 30.51, the valuation of ARKO can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
ARKO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.88 | ||
| Fwd PE | 30.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARKO is valued cheaper than 86.44% of the companies in the same industry.
ARKO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARKO is cheaper than 96.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.16 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y-8.55%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
ARKO has a Yearly Dividend Yield of 1.87%. 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 3.45. ARKO pays more dividend than 81.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, ARKO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
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-8.55%
EPS Next 3Y4.54%
ARKO CORP
NASDAQ:ARKO (1/3/2025, 8:20:26 PM)
After market: 6.38 0 (0%)6.38
-0.03 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners53.28%
Inst Owner Change2.29%
Ins Owners11.06%
Ins Owner Change0%
Market Cap738.61M
Analysts81.82
Price Target8.1 (26.96%)
Short Float %3.87%
Short Ratio9.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)-0.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-25.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.88 | ||
| Fwd PE | 30.51 | ||
| P/S | 0.08 | ||
| P/FCF | 5.16 | ||
| P/OCF | 2.88 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.96 |
EPS(TTM)0.16
EY2.51%
EPS(NY)0.21
Fwd EY3.28%
FCF(TTM)1.24
FCFY19.37%
OCF(TTM)2.21
OCFY34.72%
SpS77.51
BVpS3.28
TBVpS-0.93
PEG (NY)N/A
PEG (5Y)1.85
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.82 |
F-Score6
WACC9.87%
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-8.55%
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%