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Crossamerica Partners (CAPL)
NYSE:CAPL
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Crossamerica Partners
(NYSE:CAPL)
54Neutral
Crossamerica Partners (CAPL) vs. S&P 500 (SPY)
Market Cap
$931.32M
Dividend Yield8.58%
Average Volume (3M)39.34K
Price to Earnings (P/E)47.0
Beta (1Y)0.10
Revenue Growth-6.57%
EPS Growth-50.55%
CountryUS
Employees179
SectorEnergy
Sector Strength47
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.52
Shares Outstanding38,059,704
10 Day Avg. Volume23,976
30 Day Avg. Volume39,338
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.91
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.45
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 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 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
24.47
Price Trends
23.42
Positive
22.63
Positive
21.10
Positive
Market Momentum
0.26
Negative
59.76
Neutral
84.48
Negative
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 24.47 is above the 20-day moving average (MA) of 23.04, above the 50-day MA of 23.42, and above the 200-day MA of 21.10, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 84.48 is Negative, 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.35B | 9.08 | 32.48% | 2.91% | -16.56% | -24.95% | |
65 Neutral | $1.04B | 40.78 | 10.01% | ― | -9.17% | -71.36% | |
64 Neutral | $2.13B | 13.30 | 401.61% | 10.98% | -7.82% | 3.44% | |
56 Neutral | $6.99B | 3.72 | -4.39% | 5.96% | -0.24% | -48.44% | |
54 Neutral | $931.32M | 46.96 | 666.62% | 8.58% | -6.57% | -50.55% | |
53 Neutral | $515.81M | ― | -16.24% | ― | -13.32% | -309.35% | |
49 Neutral | $853.13M | ― | -108.21% | 7.52% | -28.68% | -4373.94% |
* Energy Sector Average
Performance Comparison
CAPL
Crossamerica Partners
24.47
3.80
18.38%
DK
Delek US Holdings
13.79
-11.57
-45.62%
MRC
MRC Global
12.09
0.50
4.31%
NRP
Natural Resource PRN
103.02
17.10
19.90%
DKL
Delek Logistics
39.76
4.52
12.83%
PUMP
Propetro Holding
5.51
-4.09
-42.60%
Crossamerica Partners Earnings Call Summary
Earnings Call Date:Feb 26, 2025
(Q4-2024)
| % Change Since: 7.14%|
Next Earnings Date:May 07, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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
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.