Arko Corp.

Consumer Staples
Food Chains
www.arkocorp.com

Earnings Score
Moat Score
Safety Score

Market Cap $841.66M
PE 46
Debt $900.07M
Cash $319.01M
EV $1.42B
FCF $143.08M

Earnings

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Sales & Net Margins

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Earnings	$18.47M
EBIT	$132.80M
ROE	7%
ROA	4%
FCF	$143.08M
Equity	$280.01M
Growth Stability	66%
PE	45.58
PEG	1.86
PB	3.01
P/FCF	5.88
P/S	0.09
Price/Cash	0.38
Debt/Equity	3.21
Debt/FCF	6.29
Net Margins	0%
Op. Margins	1%
Earnings CAGR	24%
Sales Growth YoY	-81%
Sales Growth QoQ	-5%
Sales CAGR	12%
FCF CAGR	-12%
Equity CAGR	8%
Earnings Stability	-0.61
Earnings Growth YoY	-59%
Earnings Growth QoQ	-35%
Earnings CAGR 5Y	24%

Sales CAGR 5Y	12%
FCF CAGR 5Y	-12%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	13%
Sales CAGR 3Y	13%
FCF CAGR 3Y	-19%
Equity CAGR 3Y	4%
Market Cap	$841.66M
Revenue	$8.97B
Dividend Yield	2%
Payout Ratio	76%
Assets	$3.69B
Total Debt	$900.07M
Cash	$319.01M
Shares Outstanding	115.77M
EV	1.42B
Earnings Score	6%
Moat Score	52%
Safety Score	67%
Final Score	42%
Working Capital	300.6M
Current Ratio	1.63
Shares Growth 3y	-3%
Equity Growth QoQ	3%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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ARKO Corp operates as a holding company. The company, through its subsidiaries, owns and operates convenience stores in the United States. Some of its regional store brands include Stop, Admiral, Apple Market, BreadBox, E-Z Mart, fas mart, Li'l Cricket, and Next Door Store. Its retail store offers hot food service, beverages, cigarettes & other tobacco products, candy, salty snacks, grocery, beer, and general merchandise. ARKO operates in three segments: Retail, Wholesale, and GPM Petroleum. The company derives the majority of its revenue from retail and wholesale distribution of fuel.

SEC Filings

Direct access to Arko Corp. (ARKO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Arko Corp. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Arko Corp. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability -61%

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Arko Corp. Discounted Cash Flow

Fully customizable DCF calculator online for Arko Corp..

Years

Calculation mode

= $683M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$143M	$127M	$112M	$99M	$88M	$77M	$69M	$61M	$54M	$47M	$42M	$419M
DCF		$115M	$93M	$74M	$60M	$48M	$39M	$31M	$25M	$20M	$16M	$162M
Value	$683M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-1%	0%	1%	1%	0%	0%
ROA	-	3%	5%	5%	4%	4%
ROE	-	5%	21%	23%	10%	7%

Bad Net Margins (0.28%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.12	-11.47	6.98	35.1	6.29
Debt over Equity	-	4.13	3.03	2.75	3.17	3.21
Growth Stability	-	-	-	100%	66%	66%

Bad Debt/FCF ratio (6.29)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (3.21)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (66%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-3%	85%	23%	3%	12%
Earnings YoY growth	-	-122%	412%	23%	-57%	24%
Equity YoY growth	-	-2%	32%	11%	-2%	8%
FCF YoY growth	-	-963%	-152%	-265%	-77%	-12%