ARKO CORP (ARKO) Fundamental Analysis & Valuation

NASDAQ:ARKO • US0412421085

Current stock price

5.64 USD
-0.01 (-0.18%)
Last:

This ARKO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ARKO Profitability Analysis

1.1 Basic Checks

  • ARKO had positive earnings in the past year.
  • In the past year ARKO had a positive cash flow from operations.
  • Each year in the past 5 years ARKO has been profitable.
  • ARKO had a positive operating cash flow in each of the past 5 years.
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 2024 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • ARKO's Return On Assets of 0.48% is in line compared to the rest of the industry. ARKO outperforms 50.81% of its industry peers.
  • The Return On Equity of ARKO (4.63%) is better than 61.29% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 2.42%, ARKO is in line with its industry, outperforming 50.81% of the companies in the same industry.
  • ARKO had an Average Return On Invested Capital over the past 3 years of 2.76%. This is significantly below the industry average of 13.35%.
Industry RankSector Rank
ROA 0.48%
ROE 4.63%
ROIC 2.42%
ROA(3y)0.56%
ROA(5y)1.11%
ROE(3y)5.41%
ROE(5y)9.74%
ROIC(3y)2.76%
ROIC(5y)3.45%
ARKO Yearly ROA, ROE, ROICARKO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60

1.3 Margins

  • ARKO has a Profit Margin (0.22%) which is comparable to the rest of the industry.
  • ARKO's Profit Margin has declined in the last couple of years.
  • ARKO's Operating Margin of 1.27% is in line compared to the rest of the industry. ARKO outperforms 46.77% of its industry peers.
  • ARKO's Operating Margin has declined in the last couple of years.
  • The Gross Margin of ARKO (15.45%) is worse than 82.26% of its industry peers.
  • ARKO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1.27%
PM (TTM) 0.22%
GM 15.45%
OM growth 3Y-11.52%
OM growth 5Y-8.77%
PM growth 3Y-32.47%
PM growth 5Y-3.03%
GM growth 3Y7.42%
GM growth 5Y-4.76%
ARKO Yearly Profit, Operating, Gross MarginsARKO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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4

2. ARKO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
  • ARKO has a worse debt/assets ratio than last year.
ARKO Yearly Shares OutstandingARKO Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 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 2024 2025 1B 2B 3B

2.2 Solvency

  • ARKO has an Altman-Z score of 2.51. 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.
  • The Altman-Z score of ARKO (2.51) is comparable to the rest of the industry.
  • The Debt to FCF ratio of ARKO is 17.25, which is on the high side as it means it would take ARKO, 17.25 years of fcf income to pay off all of its debts.
  • ARKO has a Debt to FCF ratio (17.25) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.93 is on the high side and indicates that ARKO has dependencies on debt financing.
  • ARKO's Debt to Equity ratio of 2.93 is on the low side compared to the rest of the industry. ARKO is outperformed by 70.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.93
Debt/FCF 17.25
Altman-Z 2.51
ROIC/WACC0.32
WACC7.46%
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 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • ARKO has a Current Ratio of 1.66. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
  • ARKO's Current ratio of 1.66 is fine compared to the rest of the industry. ARKO outperforms 70.16% of its industry peers.
  • ARKO has a Quick Ratio of 1.22. 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 Quick ratio (1.22) than 81.45% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.22
ARKO Yearly Current Assets VS Current LiabilitesARKO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ARKO Growth Analysis

3.1 Past

  • ARKO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.77%, which is quite good.
  • Measured over the past years, ARKO shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.30% on average per year.
  • ARKO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.47%.
  • Measured over the past years, ARKO shows a quite strong growth in Revenue. The Revenue has been growing by 13.77% on average per year.
EPS 1Y (TTM)10.77%
EPS 3Y-34.4%
EPS 5Y-0.3%
EPS Q2Q%113.33%
Revenue 1Y (TTM)-12.47%
Revenue growth 3Y-5.8%
Revenue growth 5Y13.77%
Sales Q2Q%-9.93%

3.2 Future

  • ARKO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.44% yearly.
  • Based on estimates for the next years, ARKO will show a decrease in Revenue. The Revenue will decrease by -0.02% on average per year.
EPS Next Y55.83%
EPS Next 2Y43.32%
EPS Next 3Y15.94%
EPS Next 5Y10.44%
Revenue Next Year-5.48%
Revenue Next 2Y-2.06%
Revenue Next 3Y-0.78%
Revenue Next 5Y-0.02%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARKO Yearly Revenue VS EstimatesARKO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ARKO Yearly EPS VS EstimatesARKO Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.1 0.2 0.3 0.4 0.5

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4

4. ARKO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 40.29, which means the current valuation is very expensive for ARKO.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARKO is on the same level as its industry peers.
  • ARKO is valuated expensively when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 25.13 indicates a quite expensive valuation of ARKO.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
  • The average S&P500 Price/Forward Earnings ratio is at 23.05. ARKO is around the same levels.
Industry RankSector Rank
PE 40.29
Fwd PE 25.13
ARKO Price Earnings VS Forward Price EarningsARKO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 79.03% of the companies in the same industry are more expensive than ARKO, based on the Enterprise Value to EBITDA ratio.
  • ARKO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARKO is cheaper than 81.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.59
EV/EBITDA 6.2
ARKO Per share dataARKO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • ARKO's earnings are expected to grow with 15.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y43.32%
EPS Next 3Y15.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ARKO Dividend Analysis

5.1 Amount

  • ARKO has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.06, ARKO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, ARKO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.2%

5.2 History

  • ARKO has been paying a dividend for over 5 years, so it has already some track record.
  • ARKO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
ARKO Yearly Dividends per shareARKO Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 2026 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

  • 113.99% of the earnings are spent on dividend by ARKO. This is not a sustainable payout ratio.
DP113.99%
EPS Next 2Y43.32%
EPS Next 3Y15.94%
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 2024 2025 0 50M -50M 100M
ARKO Dividend Payout.ARKO Dividend Payout, showing the Payout Ratio.ARKO Dividend Payout.PayoutRetained Earnings

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ARKO Fundamentals: All Metrics, Ratios and Statistics

ARKO CORP

NASDAQ:ARKO (4/6/2026, 10:57:28 AM)

5.64

-0.01 (-0.18%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25
Earnings (Next)05-06
Inst Owners56.41%
Inst Owner Change0%
Ins Owners11.85%
Ins Owner Change2.32%
Market Cap625.42M
Revenue(TTM)7.64B
Net Income(TTM)16.99M
Analysts85
Price Target8.67 (53.72%)
Short Float %2.34%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 2.2%
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP113.99%
Div Incr Years0
Div Non Decr Years3
Ex-Date03-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)62.23%
Min EPS beat(2)-14.75%
Max EPS beat(2)139.22%
EPS beat(4)3
Avg EPS beat(4)55.1%
Min EPS beat(4)-14.75%
Max EPS beat(4)139.22%
EPS beat(8)5
Avg EPS beat(8)-17.9%
EPS beat(12)6
Avg EPS beat(12)-34.43%
EPS beat(16)7
Avg EPS beat(16)-31.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-0.3%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)-0.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.67%
Revenue beat(12)2
Avg Revenue beat(12)-3.3%
Revenue beat(16)4
Avg Revenue beat(16)-2.75%
PT rev (1m)0%
PT rev (3m)15.91%
EPS NQ rev (1m)6.25%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)83.33%
Revenue NQ rev (1m)-3.69%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 40.29
Fwd PE 25.13
P/S 0.08
P/FCF 9.59
P/OCF 3.25
P/B 1.7
P/tB N/A
EV/EBITDA 6.2
EPS(TTM)0.14
EY2.48%
EPS(NY)0.22
Fwd EY3.98%
FCF(TTM)0.59
FCFY10.43%
OCF(TTM)1.74
OCFY30.79%
SpS68.93
BVpS3.31
TBVpS-0.84
PEG (NY)0.72
PEG (5Y)N/A
Graham Number3.23
Profitability
Industry RankSector Rank
ROA 0.48%
ROE 4.63%
ROCE 3.12%
ROIC 2.42%
ROICexc 2.69%
ROICexgc 3.22%
OM 1.27%
PM (TTM) 0.22%
GM 15.45%
FCFM 0.85%
ROA(3y)0.56%
ROA(5y)1.11%
ROE(3y)5.41%
ROE(5y)9.74%
ROIC(3y)2.76%
ROIC(5y)3.45%
ROICexc(3y)3.01%
ROICexc(5y)3.83%
ROICexgc(3y)3.62%
ROICexgc(5y)4.61%
ROCE(3y)3.56%
ROCE(5y)4.44%
ROICexgc growth 3Y-19.57%
ROICexgc growth 5Y-2.94%
ROICexc growth 3Y-19.56%
ROICexc growth 5Y-2.33%
OM growth 3Y-11.52%
OM growth 5Y-8.77%
PM growth 3Y-32.47%
PM growth 5Y-3.03%
GM growth 3Y7.42%
GM growth 5Y-4.76%
F-Score7
Asset Turnover2.16
Health
Industry RankSector Rank
Debt/Equity 2.93
Debt/FCF 17.25
Debt/EBITDA 4.65
Cap/Depr 94.73%
Cap/Sales 1.67%
Interest Coverage 1.11
Cash Conversion 83.32%
Profit Quality 383.76%
Current Ratio 1.66
Quick Ratio 1.22
Altman-Z 2.51
F-Score7
WACC7.46%
ROIC/WACC0.32
Cap/Depr(3y)89.31%
Cap/Depr(5y)119.6%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.66%
Profit Quality(3y)395.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.77%
EPS 3Y-34.4%
EPS 5Y-0.3%
EPS Q2Q%113.33%
EPS Next Y55.83%
EPS Next 2Y43.32%
EPS Next 3Y15.94%
EPS Next 5Y10.44%
Revenue 1Y (TTM)-12.47%
Revenue growth 3Y-5.8%
Revenue growth 5Y13.77%
Sales Q2Q%-9.93%
Revenue Next Year-5.48%
Revenue Next 2Y-2.06%
Revenue Next 3Y-0.78%
Revenue Next 5Y-0.02%
EBIT growth 1Y-9.39%
EBIT growth 3Y-16.65%
EBIT growth 5Y3.79%
EBIT Next Year158.71%
EBIT Next 3Y41.11%
EBIT Next 5Y26.1%
FCF growth 1Y-39.58%
FCF growth 3Y-16.12%
FCF growth 5Y-12.77%
OCF growth 1Y-13.19%
OCF growth 3Y-2.74%
OCF growth 5Y2.07%

ARKO CORP / ARKO Fundamental Analysis 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 4 / 10 to ARKO CORP (ARKO). This can be considered as Fairly Valued.


Can you provide the profitability details for ARKO CORP?

ARKO CORP (ARKO) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for ARKO stock?

The Price/Earnings (PE) ratio for ARKO CORP (ARKO) is 40.29 and the Price/Book (PB) ratio is 1.7.


Is the dividend of ARKO CORP sustainable?

The dividend rating of ARKO CORP (ARKO) is 3 / 10 and the dividend payout ratio is 113.99%.