ARKO Corp (ARKO) AI Stock Analysis

• Market Cap: $549.35M
• Dividend Yield: 2.43%
• Average Volume (3M): 512.38K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 1.52
• 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: 111,430,780
• 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: 5.23
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 11.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $5.50 ▲(9.13% Upside)

ARKO's overall stock score reflects strong cash flow management and positive technical indicators, balanced by high leverage and valuation concerns. The company's strategic initiatives, including the dealerization strategy and corporate events, provide a positive outlook, though challenges in the retail segment and regional pressures remain.

Positive Factors

Loyalty Program Growth

The significant growth in the loyalty program indicates strong customer engagement and potential for increased sales, enhancing long-term revenue stability.

Dealerization Strategy

The dealerization strategy is likely to improve operational efficiency and profitability, contributing to sustainable growth and competitive advantage.

New CFO Appointment

The appointment of an experienced CFO is expected to strengthen financial leadership, aiding in strategic financial planning and execution.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Decline in Same-Store Fuel Contribution

A decline in same-store fuel contribution suggests challenges in maintaining sales volume, impacting revenue and profitability.

Regional Market Pressure

Regional market pressures could hinder growth and profitability, reflecting broader economic challenges affecting consumer spending.

ARKO Corp Business Overview & Revenue Model

Company Description

ARKO Corp (ARKO) is a prominent player in the convenience retail sector, primarily operating a chain of gas stations and convenience stores across the United States. The company focuses on providing essential products and services, including fuel, snacks, beverages, and everyday consumer goods. ARKO is committed to enhancing customer experience through its extensive network of locations and innovative offerings, aiming to serve the needs of travelers and local communities alike.

How the Company Makes Money

ARKO generates revenue primarily through the sale of fuel and convenience store products. The company earns income from the direct sale of gasoline and diesel at its fueling stations, which constitutes a significant portion of its revenue. Additionally, ARKO profits from the sale of convenience items such as snacks, beverages, and household goods in its stores. The company has established strategic partnerships with various fuel suppliers and retail brands, which help optimize its supply chain and enhance its competitive position. These partnerships, combined with a focus on customer loyalty programs and promotional offers, contribute to increased sales and customer retention, further bolstering ARKO's financial performance.

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	4.01B
Gross Profit	383.67M	397.22M	423.63M	418.55M	367.48M	258.36M
EBITDA	251.34M	257.03M	265.88M	271.94M	242.28M	156.48M
Net Income	18.59M	20.84M	34.37M	71.75M	59.20M	13.71M
Balance Sheet
Total Assets	3.59B	3.62B	3.65B	3.26B	2.94B	2.74B
Cash, Cash Equivalents and Short-Term Investments	332.02M	267.09M	222.01M	300.93M	310.95M	311.43M
Total Debt	2.59B	2.58B	2.53B	2.26B	2.08B	2.01B
Total Liabilities	3.21B	3.24B	3.27B	2.87B	2.59B	2.45B
Stockholders Equity	373.13M	376.87M	376.10M	380.83M	353.45M	291.58M
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: Positive
• Last Price: 5.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKO, the sentiment is Positive. The current price of 5.04 is above the 20-day moving average (MA) of 4.85, above the 50-day MA of 4.50, and above the 200-day MA of 4.46, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARKO.

ARKO Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASO	75 Outperform	$3.58B	9.81	18.34%	0.97%	-0.65%	-10.35%
ARKO	74 Outperform	$549.35M	44.02	4.94%	2.43%	-12.61%	-27.22%
GPC	69 Neutral	$17.45B	21.61	17.05%	3.28%	3.26%	-25.41%
CASY	68 Neutral	$20.70B	34.35	16.99%	0.39%	13.33%	13.33%
GME	66 Neutral	$10.08B	27.38	8.35%	―	-12.13%	426.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AAP	48 Neutral	$2.42B	―	-23.85%	2.48%	-19.41%	-957.94%

ARKO Corp Corporate Events

ARKO Subsidiary APC Files Registration for Planned IPO

On December 19, 2025, ARKO Corp. announced that its wholly owned subsidiary, ARKO Petroleum Corp. (APC), filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering of its Class A common stock, consolidating ARKO’s wholesale, fleet fueling and GPM Petroleum segments under APC, which would handle wholesale fuel distribution to most of ARKO’s fuel-selling convenience stores. The company also disclosed that public warrants assumed in its December 22, 2020 business combination with Haymaker Acquisition Corp. II, exercisable at $11.50 per share and traded on Nasdaq under the symbol ARKOW, will expire at 5:00 p.m. Eastern Time on December 22, 2025, with trading already suspended as of December 18, 2025, while Nasdaq proceeds to delist and deregister the warrants; ARKO emphasized that the listing of its common stock on Nasdaq under the ticker ARKO remains unaffected, clarifying the capital structure for existing shareholders as it moves forward with the planned APC offering.

ARKO Corp Appoints Yona Fogel to Board

On December 11, 2025, Steven Heyer resigned from the board of ARKO Corp due to health reasons, and on December 12, 2025, Yona Fogel was appointed as his replacement. Fogel, an experienced leader in Israel’s banking, energy, and industrial sectors, brings significant expertise to ARKO Corp, potentially enhancing its strategic initiatives and governance.

ARKO Corp Appoints New CFO Galagher Jeff

ARKO Corp., a Delaware corporation, has announced the appointment of Galagher Jeff as its new Executive Vice President and Chief Financial Officer, effective December 1, 2025. Jeff will succeed Jordan Mann, who will continue in a senior strategic role within the company. Jeff brings extensive experience from previous roles at Murphy USA, Dollar Tree, Advance Auto Parts, and Walmart. His appointment includes an executive employment agreement with a base salary of $650,000, subject to periodic review, and various incentive compensations. This strategic appointment is expected to enhance ARKO Corp.’s financial leadership and operational strategy.

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.

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.