(ARKO) Arko - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NASDAQ (USA) | Market Cap: 856m USD | Total Return: 64.6% in 12m
Avg Turnover: 5.81M
EPS Trend: -67.9%
Qual. Beats: 1
Rev. Trend: -93.9%
Qual. Beats: 1
Warnings
High Debt/EBITDA (13.6) with thin interest coverage (1.6)
Altman Z'' 0.92 < 1.0 - financial distress zone
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind
Arko Corp. is a Richmond, Virginia-based operator and fuel distributor within the U.S. convenience store sector. The company manages a multi-pillar business model consisting of retail merchandise sales, wholesale fuel supply to third-party dealers, fleet fueling services via proprietary cardlocks, and internal fuel distribution through its GPMP segment.
The convenience store industry often relies on high-volume fuel traffic to drive higher-margin inside sales, such as prepared foods and tobacco. Arko utilizes a decentralized brand strategy, maintaining local identities across its retail footprint while centralizing procurement and logistics. For a deeper analysis of these operational segments, investors can find more data on ValueRay.
The company’s retail segment offers a diverse inventory including beverages, grocery items, and snacks, while its wholesale and fleet operations provide recurring revenue streams through fuel supply agreements. This diversified structure allows Arko to capture margins at multiple points along the fuel supply chain.
- Aggressive acquisition strategy drives store count and retail segment revenue growth
- Volatile fuel margins significantly impact quarterly gross profit and earnings per share
- Merchandise sales mix shifts toward higher-margin prepared foods and private labels
- Wholesale fuel volume fluctuations remain sensitive to commercial fleet demand cycles
- Rising interest rates increase debt servicing costs for acquisition-led capital structure
| Net Income: 28.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -2.85 > 1.0 |
| NWC/Revenue: 3.88% < 20% (prev 3.02%; Δ 0.86% < -1%) |
| CFO/TA 0.05 > 3% & CFO 167.9m > Net Income 28.8m |
| Net Debt (3.71b) to EBITDA (272.0m): 13.62 < 3 |
| Current Ratio: 1.62 > 1.5 & < 3 |
| Outstanding Shares: last quarter (111.3m) vs 12m ago -3.93% < -2% |
| Gross Margin: 11.77% > 18% (prev 0.05%; Δ 1.17k% > 0.5%) |
| Asset Turnover: 211.3% > 50% (prev 235.6%; Δ -24.34% > 0%) |
| Interest Coverage Ratio: 1.56 > 6 (EBITDA TTM 272.0m / Interest Expense TTM 89.9m) |
| A: 0.08 (Total Current Assets 769.7m - Total Current Liabilities 475.1m) / Total Assets 3.58b |
| B: 0.02 (Retained Earnings 89.1m / Total Assets 3.58b) |
| C: 0.04 (EBIT TTM 140.1m / Avg Total Assets 3.59b) |
| D: 0.03 (Book Value of Equity 98.3m / Total Liabilities 3.02b) |
| Altman-Z'' = 0.92 = BB |
| DSRI: 1.63 (Receivables 160.3m/110.0m, Revenue 7.59b/8.49b) |
| GMI: 0.39 (GM 11.77% / 4.63%) |
| AQI: 0.97 (AQ_t 0.17 / AQ_t-1 0.17) |
| SGI: 0.89 (Revenue 7.59b / 8.49b) |
| TATA: -0.04 (NI 28.8m - CFO 167.9m) / TA 3.58b) |
| Beneish M = -3.19 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 7.50 with a total of 970,847 shares traded.
Over the past week, the price has changed by +6.53%,
over one month by +16.06%,
over three months by +22.31% and
over the past year by +64.61%.
Arko has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy ARKO.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.5 | 13.3% |
P/E Trailing = 38.15
P/S = 0.1319
P/B = 2.1648
Revenue TTM = 7.59b USD
EBIT TTM = 140.1m USD
EBITDA TTM = 272.0m USD
Long Term Debt = 691.0m USD (from longTermDebt, last quarter)
Short Term Debt = 99.5m USD (from shortTermDebt, last quarter)
Debt = 4.00b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.65b
Net Debt = 3.71b USD (calculated: Debt 4.00b - CCE 296.4m)
Enterprise Value = 4.56b USD (856.0m + Debt 4.00b - CCE 296.4m)
Interest Coverage Ratio = 1.56 (Ebit TTM 140.1m / Interest Expense TTM 89.9m)
EV/FCF = 121.1x (Enterprise Value 4.56b / FCF TTM 37.7m)
FCF Yield = 0.83% (FCF TTM 37.7m / Enterprise Value 4.56b)
FCF Margin = 0.50% (FCF TTM 37.7m / Revenue TTM 7.59b)
Net Margin = 0.38% (Net Income TTM 28.8m / Revenue TTM 7.59b)
Gross Margin = 11.77% ((Revenue TTM 7.59b - Cost of Revenue TTM 6.69b) / Revenue TTM)
Gross Margin QoQ = 3.05% (prev 34.22%)
Tobins Q-Ratio = 1.27 (Enterprise Value 4.56b / Total Assets 3.58b)
Interest Expense / Debt = 2.25% (Interest Expense 89.9m / Debt 4.00b)
Taxrate = 21.80% (6.34m / 29.1m)
NOPAT = 109.5m (EBIT 140.1m * (1 - 21.80%))
Current Ratio = 1.62 (Total Current Assets 769.7m / Total Current Liabilities 475.1m)
Debt / Equity = 8.08 (Debt 4.00b / totalStockholderEquity, last quarter 495.4m)
Debt / EBITDA = 13.62 (Net Debt 3.71b / EBITDA 272.0m)
Debt / FCF = 98.34 (Net Debt 3.71b / FCF TTM 37.7m)
Total Stockholder Equity = 400.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.80% (Net Income 28.8m / Total Assets 3.58b)
RoE = 7.19% (Net Income TTM 28.8m / Total Stockholder Equity 400.2m)
RoCE = 12.84% (EBIT 140.1m / Capital Employed (Equity 400.2m + L.T.Debt 691.0m))
RoIC = 3.42% (NOPAT 109.5m / Invested Capital 3.20b)
WACC = 3.31% (E(856.0m)/V(4.86b) * Re(10.58%) + D(4.00b)/V(4.86b) * Rd(2.25%) * (1-Tc(0.22)))
Discount Rate = 10.58% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -2.05%
[DCF] Terminal Value 73.10% ; FCFF base≈78.8m ; Y1≈69.1m ; Y5≈55.8m
[DCF] Fair Price = N/A (negative equity: EV 895.9m - Net Debt 3.71b = -2.81b; debt exceeds intrinsic value)
EPS Correlation: -67.93 | EPS CAGR: -23.29% | SUE: 1.26 | # QB: 1
Revenue Correlation: -93.91 | Revenue CAGR: -8.38% | SUE: 1.80 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.15 | Chg30d=+0.00% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.14 | Chg30d=-22.22% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=0.29 | Chg30d=+11.54% | Revisions=+20% | GrowthEPS=+93.3% | GrowthRev=-2.8%
EPS next Year (2027-12-31): EPS=0.39 | Chg30d=+8.33% | Revisions=+20% | GrowthEPS=+34.5% | GrowthRev=-1.1%