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Crossamerica Partners LP (CAPL)
:CAPL
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Crossamerica Partners
(NYSE:CAPL)56Neutral
Crossamerica Partners (CAPL) vs. S&P 500 (SPY)
Market Cap
$886.79M
Dividend Yield9.01%
Average Volume (3M)46.38K
Price to Earnings (P/E)44.7
Beta (1Y)>-0.01
Revenue Growth-6.57%
EPS Growth-50.55%
CountryUS
Employees215
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.52
Shares Outstanding38,059,704
10 Day Avg. Volume60,143
30 Day Avg. Volume46,381
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.23
Price to Cash Flow (P/CF)20.00
P/FCF Ratio12.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Crossamerica Partners Business Overview & Revenue Model
Company DescriptionCrossAmerica Partners LP (CAPL) is a leading wholesale distributor of motor fuels and owner and lessor of real estate used in the retail distribution of motor fuels. Headquartered in Allentown, Pennsylvania, the company operates within the energy sector, focusing primarily on gasoline stations and convenience stores. CrossAmerica Partners is known for its extensive network of fuel distribution sites across the United States.
How the Company Makes MoneyCrossAmerica Partners generates revenue primarily through the wholesale distribution of motor fuels to a diverse range of customers, including independent dealers, lessee dealers, and company-operated retail sites. The company earns money by purchasing fuel from major oil companies and distributing it to its network of retail locations. Additionally, CAPL earns rental income by leasing its real estate properties to independent operators who run fuel retail businesses. Significant partnerships with major oil companies and a broad distribution network are crucial factors contributing to its earnings, ensuring a steady supply of fuel and a wide market reach.
Crossamerica Partners Financial Statement Overview
Summary
CrossAmerica Partners faces challenges with declining profitability and high financial leverage, as indicated by its income statement and balance sheet analyses. The company maintains a reasonably positive cash flow, but high debt levels and negative equity suggest underlying financial risks.Income Statement
The company's gross profit margin has declined over recent years from 18.1% in 2020 to 10.0% in 2024, indicating pressure on profitability. Revenue growth has been inconsistent, with a significant decline noted in recent years. The net profit margin has fluctuated widely, reflecting variability in net income performance.55
Neutral
Balance Sheet
Crossamerica Partners exhibits a high debt-to-equity ratio due to negative equity in recent years, posing a financial risk. The return on equity is unreliable given negative or low equity. The equity ratio is also negative, which highlights a potential insolvency risk.30
Negative
Cash Flow
The company maintains a reasonably positive free cash flow, though it has decreased from previous years. The operating cash flow to net income ratio is strong, indicating that the company effectively converts its net income into cash. However, there is a notable decrease in free cash flow growth in the most recent year.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 398.32M | 4.39B | 4.97B | 3.58B | 1.93B | Gross Profit |
| 398.32M | 382.27M | 375.77M | 276.95M | 212.13M | EBIT |
| 70.56M | 88.07M | 96.01M | 36.13M | 35.17M | EBITDA |
| 147.32M | 160.49M | 178.23M | 111.94M | 175.33M | Net Income Common Stockholders |
| 19.89M | 40.10M | 61.97M | 21.65M | 107.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.38M | 4.99M | 16.05M | 7.65M | 513.00K | Total Assets |
| 1.11B | 1.18B | 1.25B | 1.27B | 1.01B | Total Debt |
| 908.56M | 910.47M | 943.35M | 996.55M | 703.27M | Net Debt |
| 905.18M | 905.48M | 927.30M | 988.91M | 702.75M | Total Liabilities |
| 1.17B | 1.15B | 1.20B | 1.21B | 904.67M | Stockholders Equity |
| -53.78M | 3.01M | 16.47M | 3.03M | -2.46M |
| Cash Flow | Free Cash Flow | |||
| 61.46M | 82.45M | 130.97M | 53.61M | 67.43M | Operating Cash Flow |
| 87.78M | 117.08M | 161.32M | 95.47M | 104.48M | Investing Cash Flow |
| -16.31M | -28.18M | -46.40M | -298.69M | -19.55M | Financing Cash Flow |
| -73.08M | -99.97M | -106.51M | 210.36M | -86.20M |
Crossamerica Partners Technical Analysis
Positive
23.30
Price Trends
22.30
Positive
21.33
Positive
20.15
Positive
Market Momentum
0.34
Negative
60.57
Neutral
70.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAPL, the sentiment is Positive. The current price of 23.3 is above the 20-day moving average (MA) of 22.94, above the 50-day MA of 22.30, and above the 200-day MA of 20.15, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAPL.
Crossamerica Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.67B | 9.47 | 28.38% | 6.18% | -1.63% | 80.11% | |
71 Outperform | $51.44B | 25.27 | 7.27% | 3.65% | -2.81% | -68.00% | |
67 Neutral | $42.99B | 13.63 | 16.33% | 2.52% | -6.70% | -57.84% | |
63 Neutral | $2.17B | 13.53 | 401.61% | 10.63% | -7.82% | 3.44% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
56 Neutral | $886.79M | 44.71 | 666.62% | 9.01% | -6.57% | -50.55% |
* Energy Sector Average
Performance Comparison
CAPL
Crossamerica Partners
23.30
3.35
16.79%
MPC
Marathon Petroleum
137.55
-40.08
-22.56%
PSX
Phillips 66
126.18
-18.31
-12.67%
DKL
Delek Logistics
41.07
5.77
16.35%
SUN
Sunoco
56.81
-2.38
-4.02%
Crossamerica Partners Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 2.01% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for CrossAmerica Partners. While there were notable achievements in the retail segment with increased gross profits and same-store performance outpacing the national average, significant challenges were faced in the wholesale segment and overall financial metrics. The decline in retail fuel margins and increased operating expenses, along with heightened interest expenses, were significant lowlights. Despite these challenges, strategic site conversions and divestitures were positive steps towards long-term goals.Highlights
Retail Segment Gross Profit Increase
For the fourth quarter of 2024, the retail segment gross profit increased by 5% to $75.1 million compared to $69 million in the fourth quarter of 2023.
Same-Store Performance Outperformance
Retail same-store volume increased by 2% for the quarter year over year, outperforming the national gasoline demand which was down approximately 4%.
Merchandise Gross Profit Growth
Merchandise gross profit increased by 27% to $28.1 million, driven by increased sales from a higher store count.
Increase in Company-Operated Site Count
Company-operated site count increased by 69 sites from the prior year, contributing to increased retail segment exposure.
Full Year Retail Segment Growth
For the full year, retail segment gross profit increased 14% to $289.7 million compared to $253.5 million for 2023.
Wholesale Same-Store Volume Outperformance
Wholesale same-store volume outperformed national averages, being down only 1% to 2% compared to national volume data down around 4%.
Successful Site Divestitures
Throughout 2024, 30 properties were divested for $36.3 million, with the company planning to continue this momentum into 2025.
Lowlights
Decrease in Retail Fuel Margin
Retail fuel margin on a cents per gallon basis declined 9% year over year, from 41.5 cents per gallon to 37.6 cents per gallon.
Wholesale Segment Gross Profit Decline
Wholesale segment gross profit declined 22% to $25.9 million compared to $33 million in the fourth quarter of 2023.
Decrease in Net Income and EBITDA
Net income for the full year declined to $22.5 million from $42.6 million in 2023, and adjusted EBITDA decreased to $145.5 million in 2024 from $165.8 million in 2023.
Increased Operating Expenses
Operating expenses for the fourth quarter increased by $10.7 million compared to the fourth quarter of 2023, largely due to increased site count and the transition to company-operated locations.
Higher Interest Expenses
Cash interest expense increased from $10 million in Q4 2023 to $12.9 million in Q4 2024, contributing to lower distributable cash flow.
Company Guidance
During the CrossAmerica Partners Fourth Quarter and Full Year 2024 Earnings Call, the company provided detailed guidance and performance metrics. The retail segment's gross profit for Q4 2024 rose by 5% to $75.1 million, driven by a 2% increase in same-store volume despite a national gasoline demand decline of 4%. However, retail fuel margins fell 9% year-over-year to 37.6 cents per gallon. The wholesale segment saw a 22% decline in gross profit to $25.9 million, impacted by a 12% reduction in fuel volume due to site conversions. For the full year, retail segment gross profit increased by 14% to $289.7 million, while wholesale gross profit decreased by 16% to $108.6 million. The company also divested 30 properties for $36.3 million in 2024. Despite challenges, including weaker fuel margins and inflationary pressures, CrossAmerica highlighted strategic site conversions and retail outperformance relative to national data. Adjusted EBITDA for Q4 2024 was $35.5 million, down 26% from the previous year, with distributable cash flow decreasing to $21.1 million, reflecting a distribution coverage of 1.06 times.Crossamerica Partners Corporate Events
Financial Disclosures
CrossAmerica Partners Reports Decline in 2024 Financial Results
Negative
Feb 27, 2025
CrossAmerica Partners reported its financial results for the fourth quarter and full year of 2024, showing a decline in key financial metrics compared to 2023. The decrease was attributed to lower motor fuel margins and increased operating expenses due to site conversions, although there was growth in the retail segment’s gross profit and merchandise sales.
DividendsBusiness Operations and Strategy
CrossAmerica Partners Declares Stable Quarterly Distribution
Positive
Jan 23, 2025
On January 22, 2025, CrossAmerica Partners LP announced that its Board of Directors approved a quarterly distribution of $0.5250 per unit for the fourth quarter of 2024, consistent with the previous quarter. This distribution, payable on February 13, 2025, reflects the company’s stable financial strategy and commitment to its stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.