ARKO Stock Overview
Arko Corp. operates convenience stores in the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$8.49|
|52 Week High||US$10.98|
|52 Week Low||US$7.32|
|1 Month Change||-2.97%|
|3 Month Change||-7.21%|
|1 Year Change||-8.61%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-14.24%|
Recent News & Updates
Arko Corp. (NASDAQ:ARKO) Shares Could Be 22% Below Their Intrinsic Value Estimate
In this article we are going to estimate the intrinsic value of Arko Corp. ( NASDAQ:ARKO ) by taking the expected...
|ARKO||US Specialty Retail||US Market|
Return vs Industry: ARKO exceeded the US Specialty Retail industry which returned -28.8% over the past year.
Return vs Market: ARKO exceeded the US Market which returned -20.5% over the past year.
|ARKO Average Weekly Movement||6.6%|
|Specialty Retail Industry Average Movement||8.7%|
|Market Average Movement||8.0%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: ARKO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: ARKO's weekly volatility (7%) has been stable over the past year.
About the Company
Arko Corp. operates convenience stores in the United States. It operates through three segments: Retail, Wholesale, and GPM Petroleum. The Retail segment engages in the sale of fuel and merchandise to retail consumers.
Arko Fundamentals Summary
|ARKO fundamental statistics|
Is ARKO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ARKO income statement (TTM)|
|Cost of Revenue||US$6.87b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.58|
|Net Profit Margin||0.89%|
How did ARKO perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Is ARKO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ARKO?
Other financial metrics that can be useful for relative valuation.
|What is ARKO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ARKO's PE Ratio compare to its peers?
|ARKO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: ARKO is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (10.2x).
Price to Earnings Ratio vs Industry
How does ARKO's PE Ratio compare vs other companies in the U.S. Specialty Retail Industry?
Price-To-Earnings vs Industry: ARKO is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the US Specialty Retail industry average (6.1x)
Price to Earnings Ratio vs Fair Ratio
What is ARKO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||14.7x|
|Fair PE Ratio||12.3x|
Price-To-Earnings vs Fair Ratio: ARKO is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).
Share Price vs Fair Value
What is the Fair Price of ARKO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ARKO ($8.49) is trading below our estimate of fair value ($10.47)
Significantly Below Fair Value: ARKO is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: ARKO is good value based on its PEG Ratio (0.9x)
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How is Arko forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARKO's forecast earnings growth (16.6% per year) is above the savings rate (1.9%).
Earnings vs Market: ARKO's earnings (16.6% per year) are forecast to grow faster than the US market (13.9% per year).
High Growth Earnings: ARKO's earnings are forecast to grow, but not significantly.
Revenue vs Market: ARKO's revenue (5.1% per year) is forecast to grow slower than the US market (8.3% per year).
High Growth Revenue: ARKO's revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARKO's Return on Equity is forecast to be low in 3 years time (18.5%).
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How has Arko performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARKO has high quality earnings.
Growing Profit Margin: ARKO's current net profit margins (0.9%) are higher than last year (0.1%).
Past Earnings Growth Analysis
Earnings Trend: ARKO has become profitable over the past 5 years, growing earnings by 46.1% per year.
Accelerating Growth: ARKO's earnings growth over the past year (1382.3%) exceeds its 5-year average (46.1% per year).
Earnings vs Industry: ARKO earnings growth over the past year (1382.3%) exceeded the Specialty Retail industry 40.8%.
Return on Equity
High ROE: Whilst ARKO's Return on Equity (22.36%) is high, this metric is skewed due to their high level of debt.
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How is Arko's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: ARKO's short term assets ($686.3M) exceed its short term liabilities ($428.7M).
Long Term Liabilities: ARKO's short term assets ($686.3M) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: ARKO's net debt to equity ratio (121.9%) is considered high.
Reducing Debt: ARKO's debt to equity ratio has increased from 101.3% to 209.7% over the past 5 years.
Debt Coverage: ARKO's debt is well covered by operating cash flow (24.8%).
Interest Coverage: ARKO's interest payments on its debt are not well covered by EBIT (2.4x coverage).
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What is Arko current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARKO's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: ARKO's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (4.34%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether ARKO's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if ARKO's dividend payments are increasing as they only just started paying a dividend.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (3.5%), ARKO's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: ARKO is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Arie Kotler (47 yo)
Mr. Arie Kotler has been the Chairman and Chief Executive Officer of Arko Corp. since December 22, 2020 and is its President since January 15, 2021. Mr. Kotler has been the Chairman, Chief Executive Office...
CEO Compensation Analysis
Compensation vs Market: Arie's total compensation ($USD6.38M) is above average for companies of similar size in the US market ($USD4.08M).
Compensation vs Earnings: Arie's compensation has increased by more than 20% in the past year.
Experienced Management: ARKO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Experienced Board: ARKO's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Arko Corp.'s employee growth, exchange listings and data sources
- Name: Arko Corp.
- Ticker: ARKO
- Exchange: NasdaqCM
- Founded: NaN
- Industry: Automotive Retail
- Sector: Retail
- Implied Market Cap: US$1.021b
- Shares outstanding: 122.25m
- Website: https://www.arkocorp.com
Number of Employees
- Arko Corp.
- 8565 Magellan Parkway
- Suite 400
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/24 00:00|
|End of Day Share Price||2022/06/24 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.