4.47 USD
-0.07 (-1.54%)
4.47 USD
0 (0%)
ARKO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. ARKO has only an average score on both its financial health and profitability. 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.
In the past 5 years ARKO has always been profitable.
ARKO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARKO has a Return On Assets of 0.36%. This is comparable to the rest of the industry: ARKO outperforms 51.22% of its industry peers.
ARKO has a Return On Equity of 3.44%. This is comparable to the rest of the industry: ARKO outperforms 59.35% of its industry peers.
ARKO's Return On Invested Capital of 2.13% is in line compared to the rest of the industry. ARKO outperforms 45.53% of its industry peers.
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
Looking at the Profit Margin, with a value of 0.16%, ARKO is in line with its industry, outperforming 51.22% of the companies in the same industry.
ARKO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.12%, ARKO is in line with its industry, outperforming 42.28% of the companies in the same industry.
In the last couple of years the Operating Margin of ARKO has grown nicely.
ARKO has a worse Gross Margin (15.23%) than 85.37% 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 | 1.12% | ||
| 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
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
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.
ARKO's Altman-Z score of 2.50 is in line compared to the rest of the industry. ARKO outperforms 56.10% of its industry peers.
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.
ARKO has a Debt to FCF ratio (30.42) which is in line with its industry peers.
ARKO has a Debt/Equity ratio of 2.88. This is a high value indicating a heavy dependency on external financing.
ARKO's Debt to Equity ratio of 2.88 is on the low side compared to the rest of the industry. ARKO is outperformed by 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.88 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.23
WACC9.36%
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 better Current ratio (1.62) than 66.67% 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.
ARKO has a Quick ratio of 1.18. This is in the better half of the industry: ARKO outperforms 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
ARKO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.25%.
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
Measured over the past years, ARKO shows a quite strong growth in Revenue. The Revenue has been growing by 16.16% on average per year.
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.
ARKO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.54% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 40.64, ARKO can be considered very expensive at the moment.
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 26.60.
The Price/Forward Earnings ratio is 36.52, which means the current valuation is very expensive for ARKO.
ARKO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.23. ARKO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.64 | ||
| Fwd PE | 36.52 |
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 79.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.48 | ||
| EV/EBITDA | 5.83 |
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)1.09
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.64%, ARKO has a reasonable but not impressive dividend return.
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.
Compared to an average S&P500 Dividend Yield of 1.93, ARKO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
ARKO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ARKO pays out 151.91% of its income as dividend. This is not a sustainable payout ratio.
DP151.91%
EPS Next 2Y-2.97%
EPS Next 3Y3.18%
4.47
-0.07 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners57.51%
Inst Owner Change1.47%
Ins Owners11.79%
Ins Owner Change0.62%
Market Cap498.09M
Revenue(TTM)7.84B
Net Income(TTM)12.84M
Analysts82.22
Price Target7.48 (67.34%)
Short Float %3.19%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP151.91%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)0%
EPS NY rev (3m)9.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.64 | ||
| Fwd PE | 36.52 | ||
| P/S | 0.06 | ||
| P/FCF | 13.48 | ||
| P/OCF | 2.92 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.83 |
EPS(TTM)0.11
EY2.46%
EPS(NY)0.12
Fwd EY2.74%
FCF(TTM)0.33
FCFY7.42%
OCF(TTM)1.53
OCFY34.28%
SpS70.37
BVpS3.35
TBVpS-0.83
PEG (NY)1.09
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
WACC9.36%
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.
Can you provide the valuation status for ARKO CORP?
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.
What are the PE and PB ratios of ARKO CORP (ARKO) stock?
The Price/Earnings (PE) ratio for ARKO CORP (ARKO) is 40.64 and the Price/Book (PB) ratio is 1.33.
What is the earnings growth outlook for ARKO CORP?
The Earnings per Share (EPS) of ARKO CORP (ARKO) is expected to grow by 37.31% in the next year.