Want to see ARKO full AI Analyst Report?
Top Page
ARKO Corp
(NASDAQ:ARKO)
Select Model
Select Model
Rating:49Neutral
Price Target:
$4.50
▼(-43.25% Downside)
Action:Reiterated
Date:08/11/26
The score is held down primarily by weak financial fundamentals (thin profitability, leverage risk, and uneven cash conversion) and an expensive valuation (high P/E). Technicals remain bearish with the stock below major moving averages, though deeply oversold momentum indicators provide slight support. The latest earnings call is comparatively constructive due to reaffirmed guidance, raised fuel-margin outlook, strong liquidity, and an expected accretive acquisition, but near-term demand and cost headwinds limit the upside impact.
Positive Factors
Accretive USPP acquisition expanding scale and vertical integration
The USPP deal materially increases ARKO’s wholesale scale and vertical integration by adding terminals, transport capacity and ~280M gallons. That expands fee‑based revenue, reduces supply risk and creates procurement/logistics synergies that should sustainably boost wholesale and fleet margin stability over midterm.
Negative Factors
Historically high leverage and limited equity cushion
Persistently high historical leverage leaves the company exposed to interest and refinancing risk if cash flow weakens. Even with recent improvements, elevated debt ratios limit financial flexibility, constrain investment capacity and raise vulnerability to macro shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Accretive USPP acquisition expanding scale and vertical integration
The USPP deal materially increases ARKO’s wholesale scale and vertical integration by adding terminals, transport capacity and ~280M gallons. That expands fee‑based revenue, reduces supply risk and creates procurement/logistics synergies that should sustainably boost wholesale and fleet margin stability over midterm.
Read all positive factors
ARKO Corp (ARKO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$523.91M
Dividend Yield2.57%
Average Volume (3M)803.34K
Price to Earnings (P/E)57.4
Beta (1Y)1.33
Revenue Growth-2.05%
EPS Growth-1.61%
CountryUS
Employees9,748
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.08
Shares Outstanding112,185,720
10 Day Avg. Volume557,985
30 Day Avg. Volume803,343
Financial Highlights & Ratios
PEG Ratio1.97
Price to Book (P/B)1.40
Price to Sales (P/S)0.07
P/FCF Ratio7.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.00Price Target Upside-11.73% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.29
Revenue Forecast (FY)$7.51B
ARKO Corp Business Overview & Revenue Model
Company Description
Arko Corp. is a prominent operator of convenience stores across the United States. Its diverse operations are structured into three primary segments: Retail, Wholesale, and GPM Petroleum. The Retail division focuses on direct sales, providing fuel...
How the Company Makes Money
ARKO primarily makes money through three operating segments: (1) Retail, (2) Wholesale, and (3) Fleet Fueling. Retail: ARKO earns revenue from selling motor fuel at company-operated convenience stores and from selling in-store merchandise (e.g., p...
ARKO Corp Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive strategic outlook anchored by a large, accretive APC acquisition, solid first-half adjusted EBITDA growth (+14% YoY), strong loyalty engagement, improved merchandising margins, healthy liquidity (~$1B) and disciplined capital allocation. These positives offset near-term operational headwinds described for Q2 — softer retail demand in June, lower same-store fuel volumes, higher credit card fees (~$3.3M), and a Q2 adjusted EBITDA decline versus prior-year quarter. Management reiterated full-year guidance and emphasized balance-sheet flexibility and execution of transformation initiatives (dealerization, remodels, cardlock expansion). Overall, strategic momentum and financial flexibility materially outweigh the quarter-specific softness and volatility concerns.Positive Updates
Strategic APC Acquisition — USPP
Announced APC (approximately 74% owned) agreement to acquire U.S. Petroleum Partners (USPP): expected to add ~280 million annual gallons (~+14% to APC trailing 12-month gallons), more than 400 dealer locations, two Buckeye pipeline terminals, and a transportation fleet handling >80% of USPP volumes. Consideration: $205M cash + inventory plus $30M in Class A stock escrow tied to earn-out targets. Transaction expected to close later this year, be accretive on close, and add ~ $30M of annual adjusted EBITDA to APC.
Negative Updates
Second Quarter Adjusted EBITDA and Net Income Decline
Q2 adjusted EBITDA $72M vs $76.9M in Q2 2025 (down ~6.3%). Net income $9.4M vs $20.1M prior year; prior year included approximately $21M non-cash gain from a sale-leaseback, which substantially influenced the year-over-year net income comparison.
Read all updates
Q2-2026 Updates
Positive
Negative
Strategic APC Acquisition — USPP
Announced APC (approximately 74% owned) agreement to acquire U.S. Petroleum Partners (USPP): expected to add ~280 million annual gallons (~+14% to APC trailing 12-month gallons), more than 400 dealer locations, two Buckeye pipeline terminals, and a transportation fleet handling >80% of USPP volumes. Consideration: $205M cash + inventory plus $30M in Class A stock escrow tied to earn-out targets. Transaction expected to close later this year, be accretive on close, and add ~ $30M of annual adjusted EBITDA to APC.
Read all positive updates
Company Guidance
Arko reaffirmed full‑year 2026 adjusted EBITDA guidance of $245 million to $265 million and raised its expected retail fuel margin range to $0.455–$0.475 per gallon (to help offset lower volumes), noting the USPP acquisition is expected to close later this year and be accretive; the transaction consideration is $205 million cash plus inventory with a $30 million Class A stock earn‑out tied to achieving $31.7 million (and $2.2 million fuel‑component) EBITDA targets, and is expected to add roughly $30 million of annual adjusted EBITDA to APC while contributing ~280 million annual gallons (about a 14% increase to APC’s trailing‑12‑month gallons) and more than 400 dealer locations. Management highlighted first‑half adjusted EBITDA of $123 million (up 14% year‑over‑year), Q2 adjusted EBITDA of $72 million (vs. $76.9 million prior year) and Q2 net income of $9.4 million (versus $20.1 million, which benefited from a ~$21 million non‑cash gain in 2025), and said Arko ended the quarter with $246 million of cash, roughly $1 billion of total liquidity, $675 million of long‑term debt (ex‑leases), completed $35 million cash repurchases of $38 million face value senior notes, $33 million of capex in Q2, an expanded PNC credit capacity to $214 million, and pro forma net‑debt/adjusted‑EBITDA of roughly 3.0x–3.5x after the USPP deal.ARKO Corp Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
48
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.93B | 7.64B | 8.73B | 9.41B | 9.14B | 7.42B |
| Gross Profit | 1.30B | 395.50M | 397.22M | 423.63M | 418.55M | 367.48M |
| EBITDA | 242.86M | 256.28M | 257.03M | 265.88M | 271.94M | 242.28M |
| Net Income | 14.79M | 22.74M | 20.84M | 34.37M | 71.75M | 59.20M |
Balance Sheet | ||||||
| Total Assets | 3.56B | 3.53B | 3.62B | 3.65B | 3.26B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 253.72M | 311.47M | 267.09M | 222.01M | 300.93M | 310.95M |
| Total Debt | 2.33B | 3.95B | 2.58B | 2.53B | 2.26B | 2.08B |
| Total Liabilities | 2.99B | 3.17B | 3.24B | 3.27B | 2.87B | 2.59B |
| Stockholders Equity | 502.09M | 367.24M | 376.87M | 376.10M | 380.83M | 353.45M |
Cash Flow | ||||||
| Free Cash Flow | 39.90M | 65.22M | 107.94M | 24.89M | 110.48M | -67.26M |
| Operating Cash Flow | 158.11M | 192.59M | 221.86M | 136.09M | 209.26M | 159.19M |
| Investing Cash Flow | -110.25M | -119.79M | -114.86M | -296.82M | -175.49M | -171.78M |
| Financing Cash Flow | -103.73M | -41.51M | -56.00M | 85.36M | 10.55M | -26.38M |
ARKO Corp Technical Analysis
Negative
7.93
Price Trends
6.92
Negative
6.89
Negative
6.03
Negative
Market Momentum
-0.75
Negative
26.83
Positive
46.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKO, the sentiment is Negative. The current price of 7.93 is above the 20-day moving average (MA) of 5.57, above the 50-day MA of 6.92, and above the 200-day MA of 6.03, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 26.83 is Positive, neither overbought nor oversold. The STOCH value of 46.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARKO.
ARKO Corp Risk Analysis
ARKO Corp disclosed 37 risk factors in its most recent earnings report. ARKO Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ARKO Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $30.53B | 41.86 | 18.73% | 0.26% | 10.16% | 30.86% | |
69 Neutral | $73.07B | 28.25 | -232.45% | ― | 8.47% | 12.39% | |
64 Neutral | $18.43B | 18.23 | 39.30% | 3.03% | 3.98% | -5.90% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $49.42B | 20.11 | -80.35% | ― | 5.74% | -1.73% | |
55 Neutral | $10.00B | 16.04 | 94.56% | 0.40% | 10.27% | 35.33% | |
49 Neutral | $523.91M | 57.44 | 3.40% | 1.51% | -2.05% | -1.61% |
* Consumer Cyclical Sector Average
ARKO
ARKO Corp
4.67
-0.20
-4.07%
AZO
AutoZone
2,999.00
-1,198.09
-28.55%
CASY
Casey's General
807.12
312.84
63.29%
MUSA
Murphy USA
531.64
159.36
42.81%
ORLY
O'Reilly Auto
89.55
-14.44
-13.89%
TSCO
Tractor Supply
35.01
-26.17
-42.77%
ARKO Corp Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
ARKO Corp to Acquire U.S. Petroleum Partners
Positive
Aug 7, 2026
ARKO Corp. reported second-quarter 2026 net income of $9.4 million, down from $20.1 million a year earlier, and first-half 2026 net income of $3.8 million versus $7.4 million, with last year’s results boosted by a one-time $20.8 million non-...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
ARKO Corp to Acquire U.S. Petroleum Partners Assets
Positive
Aug 6, 2026
On August 4, 2026, ARKO Petroleum Corp. agreed to acquire the assets of U.S. Petroleum Partners, a vertically integrated fuel supply and distribution business serving more than 400 independent dealer locations in the Great Lakes region. The deal i...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
ARKO Corp boosts Q2 earnings and cash generation
Positive
Aug 6, 2026
ARKO Petroleum Corp. reported that for the second quarter ended June 30, 2026, net income rose to $12.2 million from $10.0 million and adjusted EBITDA edged up to $39.8 million, while operating cash flow declined to $10.4 million and discretionary...
Executive/Board ChangesShareholder Meetings
ARKO Shareholders Reaffirm Board, Pay, and Auditor Oversight
Positive
Jun 8, 2026
ARKO Corp. reported the results of its 2026 Annual Meeting of Stockholders held on June 4, 2026, where shareholders elected six directors, including Sherman K. Edmiston III, Yona Fogel, Avram Friedman, Andrew R. Heyer, Laura Shapira Karet and Arie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.