ARKO Corp (ARKO) AI Stock Analysis

• Market Cap: $498.32M
• Dividend Yield: 3%
• Average Volume (3M): 512.38K
• Price to Earnings (P/E): 57.0
• Beta (1Y): 1.46
• Revenue Growth: -12.61%
• EPS Growth: -27.22%
• Country: US
• Employees: 11,772
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.10
• Shares Outstanding: 112,742,340
• 10 Day Avg. Volume: 526,378
• 30 Day Avg. Volume: 512,377
• PEG Ratio: -0.80
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 7.09
• Enterprise Value/Market Cap: 5.77
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 7.09
• Enterprise Value/Ebitda: 14.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $4.50 ▲(4.65% Upside)

ARKO's overall stock score is driven by strong cash flow management and operational efficiency, despite challenges with high leverage and low profitability margins. The technical analysis indicates a bearish trend, while the valuation suggests the stock is relatively expensive. The earnings call provided a balanced view, with growth in strategic areas offset by retail challenges.

Positive Factors

Cash Flow Management

Strong cash flow management enhances ARKO's ability to invest in growth opportunities and sustain operations, providing a solid financial foundation.

Dealerization Strategy

The dealerization strategy boosts operational efficiency and profitability, positioning ARKO for long-term growth in its retail network.

Loyalty Program Growth

The expanding loyalty program enhances customer retention and spending, driving sustained revenue growth and competitive advantage.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting ARKO's ability to invest in growth and manage economic downturns effectively.

Inconsistent Revenue Growth

Inconsistent revenue growth challenges ARKO's ability to maintain market position and could impact long-term financial stability.

Softer Retail Performance

Declining retail performance indicates challenges in maintaining competitive edge and profitability in the core business segment.

ARKO Corp Business Overview & Revenue Model

Company Description

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. The Wholesale segment supplies fuel to third-party dealers and consignment agents. The GPM Petroleum segment supplies fuel to independent dealers, and bulk and spot purchasers. It operates approximately 3,000 locations comprising approximately 1,400 company-operated stores and approximately 1,650 dealer sites. The company is based in Richmond, Virginia.

How the Company Makes Money

ARKO Corp generates revenue primarily through the sale of fuel and convenience store merchandise. The company operates a vast network of convenience stores that sell a variety of products including groceries, snacks, beverages, and prepared food items. Fuel sales contribute significantly to ARKO's revenue, with a pricing strategy that reflects market conditions. Additionally, ARKO has established partnerships with various brands for exclusive product offerings and promotions, enhancing its appeal to customers. The company's revenue is bolstered by its ability to optimize operational efficiencies and leverage economies of scale through its extensive store network and ongoing acquisitions.

ARKO Corp Financial Statement Overview

Summary

ARKO Corp shows strengths in cash flow management and operational efficiency, but faces challenges with high leverage and low profitability margins. While revenue growth is inconsistent, the company maintains a stable financial position with a focus on improving cash conversion and supporting growth through healthy free cash flows.

Income Statement

ARKO's revenue growth has been inconsistent, with a recent decline in TTM compared to the previous year. The gross profit margin for TTM stands at 6.19%, showing a slight improvement. However, the net profit margin is low at 0.30%. EBIT and EBITDA margins are moderate at 1.07% and 2.86% respectively, indicating stable operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 7.22, suggesting significant leverage, which poses financial risk. However, the equity ratio of 9.86% indicates some level of equity backing. The return on equity is relatively low at 7.13%, reflecting modest returns for shareholders.

Cash Flow

ARKO demonstrates strong cash flow management, with a significant free cash flow growth rate of 30.09% in TTM. The operating cash flow to net income ratio is robust at 9.98, indicating efficient cash conversion. Free cash flow to net income ratio is healthy at 5.55, supporting future growth investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.84B	8.73B	9.41B	9.14B	7.42B	3.91B
Gross Profit	405.14M	397.22M	423.63M	418.55M	367.48M	258.36M
EBITDA	197.99M	256.63M	265.88M	269.51M	235.68M	155.68M
Net Income	17.12M	20.84M	34.37M	71.75M	59.20M	31.39M
Balance Sheet
Total Assets	3.59B	3.62B	3.65B	3.26B	2.94B	2.74B
Cash, Cash Equivalents and Short-Term Investments	313.23M	267.09M	222.01M	300.93M	310.95M	293.67M
Total Debt	113.60M	2.58B	2.53B	2.26B	2.08B	2.01B
Total Liabilities	3.21B	3.24B	3.27B	2.87B	2.59B	2.42B
Stockholders Equity	273.13M	376.87M	376.10M	380.83M	353.45M	318.04M
Cash Flow
Free Cash Flow	12.44M	107.94M	24.89M	110.48M	-67.26M	129.17M
Operating Cash Flow	121.31M	221.86M	136.09M	209.26M	159.19M	173.84M
Investing Cash Flow	-104.36M	-114.86M	-296.82M	-175.49M	-171.78M	-407.55M
Financing Cash Flow	-19.53M	-56.00M	85.36M	10.55M	-26.38M	491.05M

ARKO Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKO, the sentiment is Negative. The current price of 4.3 is above the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.53, and below the 200-day MA of 4.72, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 51.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARKO.

ARKO Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASO	71 Outperform	$3.07B	8.63	18.42%	1.09%	-2.20%	-17.95%
CASY	70 Outperform	$19.54B	33.75	17.10%	0.40%	8.74%	13.37%
ARKO	65 Neutral	$498.32M	56.96	4.94%	3.00%	-12.61%	-27.22%
GPC	64 Neutral	$17.39B	21.54	17.05%	3.23%	3.26%	-25.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GME	53 Neutral	$9.86B	29.19	7.58%	―	-15.48%	528.37%
AAP	41 Neutral	$2.92B	―	-23.85%	1.97%	-19.41%	-957.94%

ARKO Corp Corporate Events

Arko Corp’s Earnings Call: Growth Amid Challenges

Arko Corp’s recent earnings call presented a balanced sentiment, highlighting both achievements and challenges. The company reported significant growth in its dealerization strategy and loyalty program, alongside improvements in the wholesale segment. However, it also faced hurdles in the retail segment and a decline in same-store fuel contributions, with regional market pressures affecting performance.

Arko Corp Reports Stable Q3 2025 Earnings

Arko Corp, a Delaware-based company, operates in the retail and wholesale fuel industry, managing convenience stores and supplying fuel to gas stations across the United States. In its latest earnings report for the third quarter of 2025, Arko Corp reported a slight decrease in total revenues to $2.02 billion, compared to $2.28 billion in the same period last year. The company experienced a decline in fuel and merchandise revenues, which was partially offset by an increase in other revenues. Despite the revenue drop, Arko Corp managed to maintain a stable operating income of $35.9 million, slightly down from $41.6 million in the previous year. The company’s net income attributable to common shareholders rose to $12 million, up from $8.2 million in the third quarter of 2024, reflecting effective cost management and strategic initiatives. Looking ahead, Arko Corp remains focused on executing its growth strategies and managing operational efficiencies to navigate the competitive landscape of the fuel and convenience store market.

ARKO Corp Reports Q3 2025 Financial Results

ARKO Corp. reported its third-quarter 2025 financial results, showing a net income increase to $13.5 million from $9.7 million in the previous year, despite a decrease in adjusted EBITDA. The company continues its transformation plan by converting retail stores to dealer sites and remodeling stores to enhance customer experience. ARKO is expanding its network with new-to-industry locations and aims for significant operating income benefits and G&A savings through its dealerization program.

The most recent analyst rating on (ARKO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on ARKO Corp stock, see the ARKO Stock Forecast page.

ARKO Corp Appoints Jordan Mann as Interim CFO

On October 3, 2025, ARKO Corp., a Delaware corporation, announced the appointment of Jordan Mann as the interim Chief Financial Officer, effective October 10, 2025. Mann, who is also the Senior Vice President of Corporate Strategy, Capital Markets, and Investor Relations, will temporarily replace Robert Giammatteo. Mann’s compensation package includes a base salary of $350,000 and stock units vesting over three years, reflecting the company’s strategic approach to leadership transitions.

The most recent analyst rating on (ARKO) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on ARKO Corp stock, see the ARKO Stock Forecast page.

ARKO Corp CFO Departure Announcement on August 12

On August 12, 2025, ARKO Corp. announced that its Executive Vice President and Chief Financial Officer, Robert (Robb) Giammatteo, will be leaving the company on October 10, 2025, to pursue another opportunity. Giammatteo has assured a smooth transition and clarified that his departure is not due to any disagreements with the company regarding financial, operational, or policy matters.

The most recent analyst rating on (ARKO) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on ARKO Corp stock, see the ARKO Stock Forecast page.

Arko Corp’s Earnings Call: Mixed Sentiment Amid Growth

Arko Corp’s recent earnings call presented a balanced sentiment, highlighting both positive developments and challenges. The company reported improved same-store sales trends and strong fuel margin performance, alongside successful progress in their dealerization program. However, these positive aspects were counterbalanced by declines in retail segment operating income and same-store sales, painting a mixed outlook for the company.