ARKO CORP (ARKO)
US0412421085 - Common Stock
ARKO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. ARKO has an average financial health and profitability rating. ARKO is not valued too expensively and it also shows a decent growth rate.
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.
ARKO had positive earnings in 4 of the past 5 years.
In the past 5 years ARKO always reported a positive cash flow from operatings.
1.2 Ratios
ARKO's Return On Assets of 0.78% is in line compared to the rest of the industry. ARKO outperforms 52.38% of its industry peers.
ARKO has a Return On Equity of 7.61%. This is in the better half of the industry: ARKO outperforms 61.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, ARKO is in line with its industry, outperforming 50.79% of the companies in the same industry.
ARKO had an Average Return On Invested Capital over the past 3 years of 3.81%. This is significantly below the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 7.61% | ||
| ROIC | 3.34% |
ROA(3y)1.54%
ROA(5y)0.53%
ROE(3y)13.36%
ROE(5y)-4.55%
ROIC(3y)3.81%
ROIC(5y)2.78%
1.3 Margins
With a Profit Margin value of 0.30%, ARKO perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
ARKO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 1.59%, ARKO is in line with its industry, outperforming 49.21% of the companies in the same industry.
ARKO's Operating Margin has improved in the last couple of years.
ARKO has a Gross Margin of 13.64%. This is amonst the worse of the industry: ARKO underperforms 89.68% of its industry peers.
In the last couple of years the Gross Margin of ARKO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.59% | ||
| PM (TTM) | 0.3% | ||
| GM | 13.64% |
OM growth 3Y-7.87%
OM growth 5Y12.13%
PM growth 3Y5.44%
PM growth 5Y2.36%
GM growth 3Y-11.57%
GM growth 5Y-1.94%
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.
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.
The debt/assets ratio for ARKO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.93 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 2.93, ARKO is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
ARKO has a debt to FCF ratio of 42.90. This is a negative value and a sign of low solvency as ARKO would need 42.90 years to pay back of all of its debts.
ARKO has a Debt to FCF ratio of 42.90. This is comparable to the rest of the industry: ARKO outperforms 43.65% of its industry peers.
A Debt/Equity ratio of 2.77 is on the high side and indicates that ARKO has dependencies on debt financing.
ARKO's Debt to Equity ratio of 2.77 is on the low side compared to the rest of the industry. ARKO is outperformed by 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | 42.9 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.37
WACC8.94%
2.3 Liquidity
ARKO has a Current Ratio of 1.54. This is a normal value and indicates that ARKO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARKO (1.54) is comparable to the rest of the industry.
ARKO has a Quick Ratio of 1.03. 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 (1.03) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for ARKO have decreased strongly by -50.98% in the last year.
The Earnings Per Share has been growing by 21.60% on average over the past years. This is a very strong growth
ARKO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.95%.
ARKO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.29% yearly.
EPS 1Y (TTM)-50.98%
EPS 3Y16.84%
EPS 5Y21.6%
EPS growth Q2Q-100%
Revenue 1Y (TTM)2.95%
Revenue growth 3Y32.9%
Revenue growth 5Y18.29%
Revenue growth Q2Q2.43%
3.2 Future
The Earnings Per Share is expected to grow by 54.60% on average over the next years. This is a very strong growth
ARKO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.39% yearly.
EPS Next Y-71.44%
EPS Next 2Y-63.12%
EPS Next 3Y25.11%
EPS Next 5Y54.6%
Revenue Next Year-3.99%
Revenue Next 2Y-1.95%
Revenue Next 3Y2.84%
Revenue Next 5Y5.39%
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 18.20, ARKO is valued on the expensive side.
Based on the Price/Earnings ratio, ARKO is valued a bit cheaper than 66.67% of the companies in the same industry.
ARKO is valuated rather cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
ARKO is valuated quite expensively with a Price/Forward Earnings ratio of 63.73.
The rest of the industry has a similar Price/Forward Earnings ratio as ARKO.
When comparing the Price/Forward Earnings ratio of ARKO to the average of the S&P500 Index (21.49), we can say ARKO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 63.73 |
4.2 Price Multiples
88.10% of the companies in the same industry are more expensive than ARKO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ARKO is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.94 | ||
| EV/EBITDA | 4.91 |
4.3 Compensation for Growth
ARKO's earnings are expected to grow with 25.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-63.12%
EPS Next 3Y25.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, ARKO has a reasonable but not impressive dividend return.
The stock price of ARKO dropped by -42.70% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ARKO's Dividend Yield is rather good when compared to the industry average which is at 3.46. ARKO pays more dividend than 86.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ARKO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
ARKO pays out 69.94% of its income as dividend. This is not a sustainable payout ratio.
DP69.94%
EPS Next 2Y-63.12%
EPS Next 3Y25.11%
ARKO CORP
NASDAQ:ARKO (4/26/2024, 7:00:00 PM)
After market: 4.55 0 (0%)4.55
+0.21 (+4.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap546.00M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 63.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 7.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.59% | ||
| PM (TTM) | 0.3% | ||
| GM | 13.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-50.98%
EPS 3Y16.84%
EPS 5Y
EPS growth Q2Q
EPS Next Y-71.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.95%
Revenue growth 3Y32.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y