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ARKO

Arko NasdaqCM:ARKO Stock Report

Last Price

US$8.49

Market Cap

US$1.0b

7D

6.0%

1Y

-8.6%

Updated

24 Jun, 2022

Data

Company Financials +
ARKO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends1/6

ARKO Stock Overview

Arko Corp. operates convenience stores in the United States.

Arko Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Arko
Historical stock prices
Current Share PriceUS$8.49
52 Week HighUS$10.98
52 Week LowUS$7.32
Beta0.12
1 Month Change-2.97%
3 Month Change-7.21%
1 Year Change-8.61%
3 Year Changen/a
5 Year Changen/a
Change since IPO-14.24%

Recent News & Updates

Jun 16
Arko Corp. (NASDAQ:ARKO) Shares Could Be 22% Below Their Intrinsic Value Estimate

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...

Shareholder Returns

ARKOUS Specialty RetailUS Market
7D6.0%6.2%6.6%
1Y-8.6%-26.7%-18.5%

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.

Price Volatility

Is ARKO's price volatile compared to industry and market?
ARKO volatility
ARKO Average Weekly Movement6.6%
Specialty Retail Industry Average Movement8.7%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

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

FoundedEmployeesCEOWebsite
n/a11,236Arie Kotlerhttps://www.arkocorp.com

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

How do Arko's earnings and revenue compare to its market cap?
ARKO fundamental statistics
Market CapUS$1.02b
Earnings (TTM)US$70.42m
Revenue (TTM)US$7.91b

14.7x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARKO income statement (TTM)
RevenueUS$7.91b
Cost of RevenueUS$6.87b
Gross ProfitUS$1.04b
Other ExpensesUS$969.44m
EarningsUS$70.42m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.58
Gross Margin13.15%
Net Profit Margin0.89%
Debt/Equity Ratio209.7%

How did ARKO perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

4%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ARKO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

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

  • PEG Ratio

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.

ARKO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA11.6x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does ARKO's PE Ratio compare to its peers?

ARKO PE Ratio vs Peers
The above table shows the PE ratio for ARKO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.2x

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.

ARKO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio12.3x

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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Future Growth

How is Arko forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.6%

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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Past Performance

How has Arko performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


46.1%

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.


Discover strong past performing companies

Financial Health

How is Arko's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

What is Arko current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.94%

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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Arie Kotler (47 yo)

1.5yrs

Tenure

US$6,375,923

Compensation

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.


Leadership Team

Experienced Management: ARKO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARKO's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arko Corp.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Arko Corp.
  • 8565 Magellan Parkway
  • Suite 400
  • Richmond
  • Virginia
  • 23227-1150
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.