ARKO CORP (ARKO) Stock Fundamental Analysis
USA - NASDAQ:ARKO - US0412421085 - Common Stock
3.87 USD
+0.05 (+1.31%)
3.87 USD
0 (0%)
Taking everything into account, ARKO scores 4 out of 10 in our fundamental rating. ARKO was compared to 122 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 has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years ARKO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.25%, ARKO perfoms like the industry average, outperforming 51.64% of the companies in the same industry.
ARKO has a Return On Equity (2.48%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.24%, ARKO is in line with its industry, outperforming 47.54% of the companies in the same industry.
ARKO had an Average Return On Invested Capital over the past 3 years of 3.40%. This is significantly below the industry average of 11.64%.
| 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
Looking at the Profit Margin, with a value of 0.11%, ARKO is in line with its industry, outperforming 50.82% of the companies in the same industry.
In the last couple of years the Profit Margin of ARKO has declined.
ARKO has a Operating Margin of 1.15%. This is comparable to the rest of the industry: ARKO outperforms 44.26% of its industry peers.
In the last couple of years the Operating Margin of ARKO has grown nicely.
ARKO has a worse Gross Margin (15.09%) than 86.89% 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 | 1.15% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARKO is destroying value.
The number of shares outstanding for ARKO has been reduced compared to 1 year ago.
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
ARKO has an Altman-Z score of 2.53. 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 2.53, ARKO perfoms like the industry average, outperforming 58.20% of the companies in the same industry.
ARKO has a debt to FCF ratio of 12.25. This is a negative value and a sign of low solvency as ARKO would need 12.25 years to pay back of all of its debts.
ARKO has a Debt to FCF ratio (12.25) which 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.
ARKO has a Debt to Equity ratio of 2.95. This is in the lower half of the industry: ARKO underperforms 73.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.95 | ||
| Debt/FCF | 12.25 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.25
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.55 indicates that ARKO should not have too much problems paying its short term obligations.
ARKO's Current ratio of 1.55 is fine compared to the rest of the industry. ARKO outperforms 66.39% of its industry peers.
ARKO has a Quick Ratio of 1.11. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ARKO (1.11) is better than 81.15% 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%.
ARKO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.40% yearly.
ARKO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.05%.
The Revenue has been growing by 16.16% on average over the past years. This is quite good.
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
Based on estimates for the next years, ARKO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.31% on average per year.
The Revenue is expected to decrease by -2.17% on average over the next years.
EPS Next Y25.54%
EPS Next 2Y-23.29%
EPS Next 3Y-33.98%
EPS Next 5Y8.31%
Revenue Next Year-12.96%
Revenue Next 2Y-7.63%
Revenue Next 3Y-5.21%
Revenue Next 5Y-2.17%
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
The Price/Earnings ratio is 48.38, 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's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.02.
The Price/Forward Earnings ratio is 50.59, which means the current valuation is very expensive for ARKO.
The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
ARKO is valuated expensively when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.38 | ||
| Fwd PE | 50.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARKO indicates a rather cheap valuation: ARKO is cheaper than 84.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARKO indicates a rather cheap valuation: ARKO is cheaper than 98.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.73 | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A cheap valuation may be justified as ARKO's earnings are expected to decrease with -33.98% in the coming years.
PEG (NY)1.89
PEG (5Y)N/A
EPS Next 2Y-23.29%
EPS Next 3Y-33.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, ARKO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.68, ARKO pays a better dividend. On top of this ARKO pays more dividend than 85.25% of the companies listed in the same industry.
ARKO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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%
3.87
+0.05 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners56.79%
Inst Owner Change0%
Ins Owners11.88%
Ins Owner Change0.41%
Market Cap436.30M
Analysts80
Price Target6.76 (74.68%)
Short Float %4.16%
Short Ratio6.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)0%
PT rev (3m)-3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)0%
EPS NY rev (3m)50%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.38 | ||
| Fwd PE | 50.59 | ||
| P/S | 0.05 | ||
| P/FCF | 4.73 | ||
| P/OCF | 1.89 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.08
EY2.07%
EPS(NY)0.08
Fwd EY1.98%
FCF(TTM)0.82
FCFY21.16%
OCF(TTM)2.04
OCFY52.82%
SpS71.84
BVpS3.24
TBVpS-0.94
PEG (NY)1.89
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 | 2.53 |
F-Score5
WACC9.08%
ROIC/WACC0.25
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-12.96%
Revenue Next 2Y-7.63%
Revenue Next 3Y-5.21%
Revenue Next 5Y-2.17%
EBIT growth 1Y-29.43%
EBIT growth 3Y-9.31%
EBIT growth 5Y141.14%
EBIT Next Year140.69%
EBIT Next 3Y36.31%
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%