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Crossamerica Partners LP (CAPL)
:CAPL
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Crossamerica Partners
(NYSE:CAPL)
Rating:54Neutral
Price Target:―
Crossamerica Partners (CAPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$867.48M
Dividend Yield9.31%
Average Volume (3M)26.73K
Price to Earnings (P/E)28.7
Beta (1Y)0.18
Revenue Growth-6.57%
EPS Growth-50.55%
CountryUS
Employees179
SectorEnergy
Sector Strength45
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)-0.20
Shares Outstanding38,097,510
10 Day Avg. Volume25,740
30 Day Avg. Volume26,730
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)-10.28
Price to Sales (P/S)0.00
P/FCF Ratio13.26
Enterprise Value/Market Cap2.07
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit4.84
Enterprise Value/Ebitda2.98
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 engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. As of December 31, 2021, the company distributed motor fuel on a wholesale basis to approximately 1,750 sites located in 34 states; and owned or leased approximately 1,150 sites. CrossAmerica GP LLC operates as the general partner of the company. The company was formerly known as Lehigh Gas Partners LP and changed its name to CrossAmerica Partners LP in October 2014. The company was founded in 1992 and is based in Allentown, Pennsylvania.
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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -1.05%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The first quarter presented a mixed performance with positive achievements in retail profit and margin expansion both in retail and wholesale segments. However, challenges such as a decline in sales volumes, increased expenses, and higher interest costs have balanced the positive outcomes.Q1-2025 Updates
Positive Updates
Increase in Retail Segment Gross Profit
Retail segment gross profit increased 16% to $63.2 million compared to $54.4 million in the first quarter of 2024, driven by an increase in both motor fuel and merchandise gross profit.
Improvement in Retail Fuel Margin
Retail fuel margin increased 10% year-over-year, with margins rising from $0.308 per gallon in Q1 2024 to $0.339 per gallon in Q1 2025.
Expansion of Retail Sites
Overall retail site count increased by 64 sites during the first quarter of 2025 compared to the same period in 2024, indicating strategic growth in retail operations.
Wholesale Segment Fuel Margin Increase
Wholesale motor fuel gross profit increased 8%, and wholesale fuel margin grew by 23%, from $0.079 per gallon in Q1 2024 to $0.097 per gallon in Q1 2025.
Reduction in Net Loss
Net loss reduced to $7.1 million for Q1 2025 from $17.5 million in Q1 2024.
Negative Updates
Decline in Retail Volume
Retail same-store fuel volume declined 4% for the quarter year-over-year, with adjusted decline at 3% due to the leap year impact.
Wholesale Segment Volume Decline
Wholesale segment volume dropped 11% to 162.9 million gallons in Q1 2025 from 184 million gallons in Q1 2024, due to the conversion of sites to the retail segment.
Increased Operating Expenses
Retail segment operating expenses increased by approximately 20%, driven by a 17% increase in segment site count year-over-year.
Higher Interest Expenses
Interest expenses increased from $10.1 million in Q1 2024 to $12.4 million in Q1 2025, due to the expiration of advantageous interest rate swaps.
Distributable Cash Flow Decline
Distributable cash flow decreased to $9.1 million from $11.7 million in Q1 2024, primarily due to higher cash interest expense and sustaining capital expenditures.
Company Guidance
During the CrossAmerica Partners first quarter 2025 earnings call, key guidance metrics were discussed. The retail segment's gross profit increased by 16% to $63.2 million, while the retail fuel margin saw a 10% year-over-year increase to $0.339 per gallon. Despite a 4% decline in overall retail volume, adjusted for the leap year effect, the company noted a relative strength in retail fuel margins. The wholesale segment experienced a 1% decline in gross profit to $26.7 million, primarily due to site conversions, although the wholesale fuel margin increased by 23% to $0.097 per gallon. Same-store inside sales declined by 1.5%, but outperformed the market, and the company-operated site count increased by 33 sites year-over-year. Overall, adjusted EBITDA was up 3% to $24.3 million, despite a net loss of $7.1 million, as the company navigated significant economic and operational challenges.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. While cash flows remain relatively stable, underlying financial risks are suggested by negative equity and high debt levels. The company needs to address profitability issues and leverage management to strengthen its financial position.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.99B | 4.10B | 4.39B | 4.97B | 3.58B | 1.93B | Gross Profit |
| 370.46M | 398.32M | 382.27M | 375.77M | 276.95M | 212.13M | EBIT |
| 113.23M | 70.56M | 88.07M | 96.01M | 36.13M | 35.17M | EBITDA |
| 145.89M | 153.29M | 160.49M | 178.23M | 111.94M | 175.33M | Net Income Common Stockholders |
| 29.65M | 19.89M | 40.10M | 61.97M | 21.65M | 107.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.99M | 3.38M | 4.99M | 16.05M | 7.65M | 513.00K | Total Assets |
| 1.18B | 1.11B | 1.18B | 1.25B | 1.27B | 1.01B | Total Debt |
| 910.47M | 908.56M | 910.47M | 943.35M | 996.55M | 703.27M | Net Debt |
| 905.48M | 905.18M | 905.48M | 927.30M | 988.91M | 702.75M | Total Liabilities |
| 1.18B | 1.17B | 1.15B | 1.20B | 1.21B | 904.67M | Stockholders Equity |
| 3.01M | 0.00 | 3.01M | 16.47M | 3.03M | -2.46M |
| Cash Flow | Free Cash Flow | ||||
| 66.69M | 61.46M | 82.45M | 130.97M | 53.61M | 67.43M | Operating Cash Flow |
| 97.01M | 87.78M | 117.08M | 161.32M | 95.47M | 104.48M | Investing Cash Flow |
| 8.32M | -16.31M | -28.18M | -46.40M | -298.69M | -19.55M | Financing Cash Flow |
| -104.86M | -73.08M | -99.97M | -106.51M | 210.36M | -86.20M |
Crossamerica Partners Technical Analysis
Negative
22.56
Price Trends
22.90
Negative
22.44
Positive
21.00
Positive
Market Momentum
-0.05
Positive
47.44
Neutral
47.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAPL, the sentiment is Negative. The current price of 22.56 is below the 20-day moving average (MA) of 22.92, below the 50-day MA of 22.90, and above the 200-day MA of 21.00, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 47.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.27B | 9.27 | 31.98% | 3.11% | -19.21% | -30.92% | |
68 Neutral | $2.27B | 14.21 | 542.39% | 10.37% | -8.79% | 7.75% | |
65 Neutral | $1.07B | 41.18 | 8.29% | ― | -9.84% | -111.71% | |
57 Neutral | $7.06B | 3.04 | -3.49% | 5.80% | 0.53% | -50.39% | |
54 Neutral | $867.48M | 28.72 | 666.62% | 9.31% | -6.57% | -50.55% | |
53 Neutral | $579.82M | ― | -16.24% | ― | -13.32% | -309.35% | |
51 Neutral | $1.18B | ― | -151.69% | 5.23% | -29.23% | -931.43% |
* Energy Sector Average
Performance Comparison
CAPL
Crossamerica Partners
22.77
4.76
26.43%
DK
Delek US Holdings
19.78
-5.83
-22.76%
MRC
MRC Global
12.62
-0.49
-3.74%
NRP
Natural Resource PRN
96.00
9.66
11.19%
DKL
Delek Logistics
42.45
6.84
19.21%
PUMP
Propetro Holding
5.66
-4.16
-42.36%
Crossamerica Partners Corporate Events
DividendsFinancial Disclosures
CrossAmerica Partners Announces Quarterly Distribution Approval
Positive
Apr 22, 2025
On April 22, 2025, CrossAmerica Partners LP announced that its Board of Directors approved a quarterly distribution of $0.5250 per unit for the first quarter of 2025, maintaining the same rate as the previous quarter. This distribution is payable on May 15, 2025, to unitholders of record on May 5, 2025. The announcement reflects the company’s stable financial performance and commitment to providing consistent returns to its stakeholders. CrossAmerica will also host a conference call on May 8 to discuss its first-quarter earnings results, which will be released on May 7.
Spark’s Take on CAPL Stock
According to Spark, TipRanks’ AI Analyst, CAPL is a Neutral.
CrossAmerica Partners exhibits financial challenges with declining profitability and high leverage, impacting its overall score. Despite positive technical trends and strategic efforts in site conversions, the stock’s high P/E ratio and mixed earnings call results suggest caution. The high dividend yield is a strength but may not be sustainable given current financial pressures.
To see Spark’s full report on CAPL stock, click here.
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.
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.