4.63 USD
-0.01 (-0.22%)
4.63 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ARKO. 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
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.
Each year in the past 5 years ARKO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARKO (0.36%) is comparable to the rest of the industry.
ARKO's Return On Equity of 3.44% is in line compared to the rest of the industry. ARKO outperforms 59.35% of its industry peers.
ARKO has a Return On Invested Capital (2.13%) which is comparable to the rest of the industry.
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
ARKO has a Profit Margin (0.16%) which is comparable to the rest of the industry.
ARKO's Profit Margin has declined in the last couple of years.
ARKO has a Operating Margin (1.12%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARKO has grown nicely.
With a Gross Margin value of 15.23%, ARKO is not doing good in the industry: 86.18% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, ARKO has less shares outstanding
The number of shares outstanding for ARKO has been reduced compared to 5 years ago.
Compared to 1 year ago, ARKO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ARKO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.50, ARKO is in line with its industry, outperforming 54.47% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 30.42, ARKO perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
ARKO has a Debt/Equity ratio of 2.88. This is a high value indicating a heavy dependency on external financing.
ARKO has a worse Debt to Equity ratio (2.88) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.23
WACC9.41%
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 Current ratio of 1.62. This is in the better half of the industry: ARKO outperforms 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.
Looking at the Quick ratio, with a value of 1.18, ARKO is in the better half of the industry, outperforming 78.86% of the companies in the same industry.
| 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.
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
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.
The Revenue is expected to decrease by -3.54% on average over the next years.
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 42.09.
ARKO's Price/Earnings ratio is in line with the industry average.
ARKO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.84.
With a Price/Forward Earnings ratio of 37.83, ARKO can be considered very expensive at the moment.
ARKO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ARKO to the average of the S&P500 Index (23.40), we can say ARKO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.09 | ||
| Fwd PE | 37.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARKO is valued cheaper than 80.49% of the companies in the same industry.
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 | 13.96 | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
The 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%.
Compared to an average industry Dividend Yield of 2.01, ARKO pays a better dividend. On top of this ARKO pays more dividend than 84.55% of the companies listed 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 paid a dividend for less than 5 years, so there is no long track record yet.
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%
4.63
-0.01 (-0.22%)
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 Cap515.92M
Revenue(TTM)7.84B
Net Income(TTM)12.84M
Analysts82.22
Price Target7.48 (61.56%)
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 | 42.09 | ||
| Fwd PE | 37.83 | ||
| P/S | 0.07 | ||
| P/FCF | 13.96 | ||
| P/OCF | 3.02 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.92 |
EPS(TTM)0.11
EY2.38%
EPS(NY)0.12
Fwd EY2.64%
FCF(TTM)0.33
FCFY7.16%
OCF(TTM)1.53
OCFY33.09%
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
WACC9.41%
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.