ARKO CORP (ARKO) Stock Fundamental Analysis
NASDAQ:ARKO - US0412421085 - Common Stock
4.97 USD
-0.22 (-4.24%)
4.97 USD
0 (0%)
Taking everything into account, ARKO scores 3 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 does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years ARKO has been profitable.
Each year in the past 5 years ARKO had a positive operating cash flow.
1.2 Ratios
ARKO has a Return On Assets (0.25%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 2.48%, ARKO is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
ARKO's Return On Invested Capital of 2.24% is in line compared to the rest of the industry. ARKO outperforms 47.97% 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 11.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 2.48% | ||
| ROIC | 2.24% |
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 (0.11%) which is in line with its industry peers.
ARKO's Profit Margin has declined in the last couple of years.
The Operating Margin of ARKO (1.15%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARKO has grown nicely.
With a Gross Margin value of 15.09%, ARKO is not doing good in the industry: 87.80% 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 | 1.15% | ||
| PM (TTM) | 0.11% | ||
| GM | 15.09% |
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
ARKO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARKO has less shares outstanding
ARKO has less shares outstanding than it did 5 years ago.
ARKO has a worse debt/assets ratio than last year.
2.2 Solvency
ARKO has an Altman-Z score of 2.56. 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 Altman-Z score of 2.56. This is comparable to the rest of the industry: ARKO outperforms 55.28% of its industry peers.
The Debt to FCF ratio of ARKO is 12.25, which is on the high side as it means it would take ARKO, 12.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARKO (12.25) is comparable to the rest of the industry.
ARKO has a Debt/Equity ratio of 2.95. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARKO (2.95) is worse than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | 12.25 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.23
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.55 indicates that ARKO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.55, ARKO is doing good in the industry, outperforming 65.04% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that ARKO should not have too much problems paying its short term obligations.
The Quick ratio of ARKO (1.11) is better than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ARKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.23%.
Measured over the past years, ARKO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -33.40% on average per year.
The Revenue for ARKO has decreased by -13.05% 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)-69.23%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%45.45%
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-16.27%
3.2 Future
The Earnings Per Share is expected to grow by 8.31% on average over the next years. This is quite good.
ARKO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.17% yearly.
EPS Next Y25.54%
EPS Next 2Y-23.29%
EPS Next 3Y-33.98%
EPS Next 5Y8.31%
Revenue Next Year-12.26%
Revenue Next 2Y-7.19%
Revenue Next 3Y-4.79%
Revenue Next 5Y-2.17%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 62.12 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 rather expensive valuation when compared to the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 64.97, ARKO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARKO indicates a slightly more expensive valuation: ARKO is more expensive than 60.98% of the companies listed in the same industry.
ARKO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.12 | ||
| Fwd PE | 64.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARKO indicates a somewhat cheap valuation: ARKO is cheaper than 79.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ARKO is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | 6.17 |
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 decrease with -33.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y-23.29%
EPS Next 3Y-33.98%
5. Dividend
5.1 Amount
ARKO has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 5.70, 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 comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
ARKO pays out 216.31% of its income as dividend. This is not a sustainable payout ratio.
DP216.31%
EPS Next 2Y-23.29%
EPS Next 3Y-33.98%
4.97
-0.22 (-4.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners58.18%
Inst Owner Change-3.64%
Ins Owners11.76%
Ins Owner Change1.86%
Market Cap560.32M
Analysts80
Price Target6.76 (36.02%)
Short Float %4.87%
Short Ratio7.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP216.31%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.96%
Min EPS beat(2)30.8%
Max EPS beat(2)65.12%
EPS beat(4)2
Avg EPS beat(4)-109.46%
Min EPS beat(4)-492.16%
Max EPS beat(4)65.12%
EPS beat(8)5
Avg EPS beat(8)-43.03%
EPS beat(12)5
Avg EPS beat(12)-48.99%
EPS beat(16)7
Avg EPS beat(16)-38.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-2.87%
Revenue beat(4)0
Avg Revenue beat(4)-5.76%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-2.87%
Revenue beat(8)1
Avg Revenue beat(8)-4.05%
Revenue beat(12)2
Avg Revenue beat(12)-3.8%
Revenue beat(16)4
Avg Revenue beat(16)-3.07%
PT rev (1m)-7.02%
PT rev (3m)-8.62%
EPS NQ rev (1m)-5.56%
EPS NQ rev (3m)-34.62%
EPS NY rev (1m)50%
EPS NY rev (3m)108.69%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-9.48%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.12 | ||
| Fwd PE | 64.97 | ||
| P/S | 0.07 | ||
| P/FCF | 6.07 | ||
| P/OCF | 2.43 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.17 |
EPS(TTM)0.08
EY1.61%
EPS(NY)0.08
Fwd EY1.54%
FCF(TTM)0.82
FCFY16.48%
OCF(TTM)2.04
OCFY41.13%
SpS71.84
BVpS3.24
TBVpS-0.94
PEG (NY)2.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.25% | ||
| ROE | 2.48% | ||
| ROCE | 2.97% | ||
| ROIC | 2.24% | ||
| ROICexc | 2.48% | ||
| ROICexgc | 2.98% | ||
| OM | 1.15% | ||
| PM (TTM) | 0.11% | ||
| GM | 15.09% | ||
| FCFM | 1.14% |
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%
ROICexcg growth 3Y-17.3%
ROICexcg 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 Turnover2.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | 12.25 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 101.87% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 1.03 | ||
| Cash Conversion | 100.88% | ||
| Profit Quality | 1019.09% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.56 |
F-Score5
WACC9.63%
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)-69.23%
EPS 3Y-33.4%
EPS 5YN/A
EPS Q2Q%45.45%
EPS Next Y25.54%
EPS Next 2Y-23.29%
EPS Next 3Y-33.98%
EPS Next 5Y8.31%
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y5.59%
Revenue growth 5Y16.16%
Sales Q2Q%-16.27%
Revenue Next Year-12.26%
Revenue Next 2Y-7.19%
Revenue Next 3Y-4.79%
Revenue Next 5Y-2.17%
EBIT growth 1Y-29.43%
EBIT growth 3Y-9.31%
EBIT growth 5Y141.14%
EBIT Next Year138.46%
EBIT Next 3Y34.96%
EBIT Next 5Y21.69%
FCF growth 1Y16.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.87%
OCF growth 3Y11.7%
OCF growth 5Y38.65%