One-glance verdict
Within fair range
$2.37 our estimate vs market $4.40
Wall Street consensus: $9.00 (279.4% higher than our fair-value estimate)
85% above our estimate
Fundamentals snapshot
Arko Corp.
ARKO · NCM · Consumer Cyclical · Specialty Retail
Current price
$4.40
52-week range
$3.71 - $8.76
Market cap
$493.62M
Balance sheet
Distressed
1.10x Concerning
Net debt $2.08B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 5/10 years.
- Reward Dividend yield is 2.6% with 5-year payout history.
- Risk Forward P/E (88.0x) is higher than trailing (55.0x) - earnings are expected to drop.
- Risk Stock trades 67.1% above its 5-year average P/E.
What this company does
Arko Corp.
Arko Corp. operates one of America's largest chains of convenience stores, which are often connected to gas stations. The company makes money in two main ways: selling fuel and in-store goods like snacks to everyday customers, and also by acting as a fuel wholesaler (a company that sells large quantities to other businesses) to independent gas stations. This matters because demand for fuel and convenience items tends to remain steady, providing the company with consistent business from both individual consumers and other companies.
How the company got here
Arko's story is one of rapid growth by buying up other, smaller convenience store chains. The company's roots go back to GPM Investments, which was founded in 2002. Starting in 2013, GPM went on an acquisition spree, purchasing over 20 regional convenience store businesses and growing from around 200 stores to over 1,500. Instead of renaming all the stores it bought, it kept their local brand names, which is why you see many different store signs under its ownership. In 2020, the company became publicly traded on the stock market under the name Arko Corp.
What it actually does
Arko is one of the largest convenience store operators in the United States, but you might not recognize the name Arko itself. Instead, you would know its many regional store brands like E-Z Mart, fas mart, and Scotchman. These stores are like typical gas stations or corner stores, selling fuel, snacks, drinks, coffee, and tobacco products. Beyond just selling things to people who stop for gas, the company also has a large business of supplying fuel to gas stations it doesn't operate itself.
Retail
This is the part of the business most people see: the convenience stores themselves. Arko operates over 1,500 stores across more than 30 states where you can buy gasoline and everyday items like snacks, drinks, and prepared foods. This segment makes money by selling fuel and earning a profit on the merchandise sold inside the stores. While fuel sales bring in a lot of revenue (the total amount of money collected), the company often makes more profit from the higher margins (the percentage of the selling price that is actual profit) on items sold inside the store.
Wholesale
In this part of the business, Arko acts as a middleman for fuel. It supplies gasoline and diesel to over 1,800 gas stations that are owned by independent operators, not by Arko. These independent dealers pay Arko for the fuel, which they then sell to their own customers. This is a significant business for Arko, providing a steady stream of revenue by leveraging its ability to buy fuel in large quantities.
Fleet Fueling
This segment is focused on business customers, specifically companies that operate a lot of vehicles, like trucking or delivery companies. Arko provides these companies with special fuel cards that their drivers can use at a nationwide network of fueling stations. It makes money from the fuel sold to these fleet customers and from fees for using the card system. This business includes both staffed gas stations and unstaffed 'cardlock' locations accessible 24/7 with the fleet card.
GPMP
This segment, which stands for GPM Petroleum, is the internal fuel supplier for the rest of the company. It handles the logistics of getting fuel to Arko's own retail stores and its wholesale customers. Think of it as the company's own fuel distribution arm, ensuring that all the other parts of the business have the gasoline and diesel they need to sell. Its financial results are largely based on these internal transactions with the retail and wholesale segments.
What management is betting on now
Management's main strategy is to continue growing by acquiring smaller, family-owned convenience store chains, especially in smaller towns. They believe they can make these newly acquired stores more profitable by using their size to get better deals from suppliers and by improving the selection of food and merchandise. The company is also focused on growing its more profitable fleet fueling business and has been converting some of its company-operated stores into dealer-run sites to improve profitability.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$79.89M
FY2024 Q4
$-13.40M
FY2025 Q1
$16.01M
FY2025 Q2
$9.84M
FY2025 Q3
$24.52M
FY2025 Q4
$14.93M
FY2026 Q1
$-11.61M
FY2026 Q2
$8.90M
Revenue
—
Net income
$6.12M
Diluted EPS
0.04
Operating cash flow
$42.21M
Free cash flow
$8.90M
Fetching…
Sources
Revenue
—
Net income
$-6.64M
Diluted EPS
-0.07
Operating cash flow
$18.67M
Free cash flow
$-11.61M
Fetching…
Sources
Revenue
—
Net income
$1.86M
Diluted EPS
0.01
Operating cash flow
$44.58M
Free cash flow
$14.93M
Fetching…
Sources
Revenue
—
Net income
$13.46M
Diluted EPS
0.10
Operating cash flow
$49.42M
Free cash flow
$24.52M
Fetching…
Sources
Revenue
—
Net income
$20.10M
Diluted EPS
0.16
Operating cash flow
$55.19M
Free cash flow
$9.84M
Fetching…
Sources
Revenue
—
Net income
$-12.67M
Diluted EPS
-0.12
Operating cash flow
$43.40M
Free cash flow
$16.01M
Fetching…
Sources
Revenue
—
Net income
$-2.30M
Diluted EPS
-0.03
Operating cash flow
$22.73M
Free cash flow
$-13.40M
Fetching…
Sources
Revenue
—
Net income
$9.67M
Diluted EPS
0.07
Operating cash flow
$109.16M
Free cash flow
$79.89M
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.37 vs current price $4.40
Wall Street consensus is the average analyst price target: $9.00 (279.4% higher than our fair-value estimate).
Our most-likely fair value is $2.37 a share — about 46.1% away from today's price of $4.40, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.1B. Interest coverage 1.1x.
Net debt
$2.08B
Interest coverage
1.10x
Arko Corp.'s profit covers its interest bill about 1.1 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
ARKO
BASELINE
Arko Corp.
Total debt $2.33B Interest coverage 1.10x This is the baseline the peer rows are being compared against.
Total debt $830.80M Interest coverage 1.11x +1% vs ARKO Has roughly the same debt cushion as ARKO.
What you should know
The case for and against ARKO
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
-
Dividend yield is 2.6% with 5-year payout history.
Risks
-
Forward P/E (88.0x) is higher than trailing (55.0x) - earnings are expected to drop.
-
Stock trades 67.1% above its 5-year average P/E.
-
Insider ownership is only 29.8% (peer median: 52.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
55.00x
Forward P/E
88.00x
P/B
1.23x
P/S
0.07x
EV/EBITDA
11.18x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
16.9%
Operating margin
1.6%
Net margin
0.2%
ROE
4.1%
ROA
2.0%
Health
Liquidity and balance-sheet strength
Debt / equity
4.09x
Current ratio
1.60x
Quick ratio
0.87x
Total debt
$2.33B
Total cash
$253.72M
Growth
How the business has been compounding
Revenue TTM
$72.09M
Revenue 5Y CAGR
30.3%
EPS TTM
0.08
EPS 5Y CAGR
-34.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$154.88M
Free CF TTM
$65.30M
FCF margin
90.6%
Dividend
Shareholder payout
Yield
2.6%
Payout ratio
150.0%
Last ex-div date
2026-08-20