Company Overview
ARKO Petroleum Corp. functions as a fuel distributor across North America, operating through three primary segments that include wholesale distribution, fleet fueling, and GPMP. The enterprise operates within the Energy sector, specifically focusing on the Oil & Gas Refining & Marketing industry, which involves the processing and distribution of motor fuel to retail sites and third-party dealers under long-term contracts. The company maintains a market capitalization of $1.46B and reports a trailing twelve-month revenue of $5.72B, while the employee count is listed as N/A in available data. These valuation and revenue figures indicate a significant operational footprint, positioning the entity as a substantial player in the regional fuel distribution landscape despite the lack of disclosed headcount metrics. The substantial revenue relative to the market cap suggests a price-to-sales dynamic that reflects the capitalization of its extensive distribution network rather than high-margin profitability in the traditional sense.
Financial Health
The company reported a revenue of $5.72B, net income of $32.20M, and EBITDA of $141.36M for the trailing twelve months. The significant gap between the $5.72B in revenue and the $32.20M in net income reveals a cost structure characterized by high operating expenses that consume the majority of gross inflows before reaching the bottom line. While the free cash flow is listed as N/A, the company holds $25.09M in cash against $796.18M in total debt, indicating a leveraged balance sheet where cash reserves are minimal relative to obligations. The gross margin stands at 4.8%, the operating margin at 1.5%, and the profit margin at 0.6%, indicating a business model where low margins are inherent to the wholesale distribution nature of the industry. Comparing total cash of $25.09M to total debt of $796.18M, combined with a debt-to-equity ratio of 1214.24, demonstrates a highly leveraged financial position reliant on equity financing rather than debt service coverage from current liquidity. The current ratio is 1.07, which indicates that the company's short-term assets are just slightly above its short-term liabilities, suggesting tight but functional short-term liquidity management. Furthermore, the Return on Equity and Return on Assets are listed as N/A, meaning specific metrics regarding management effectiveness in generating returns from shareholder equity or total assets are not disclosed in the provided data.
Valuation Assessment
The trailing twelve-month P/E ratio is 25.20, while the forward P/E is projected at 14.99, implying that the market expects a significant expansion in earnings per share to justify the lower forward multiple compared to the current trailing multiple. The price-to-book ratio is 245.00, which indicates a massive market premium over the book value of the company's assets, suggesting that the market values the firm's intangible assets, brand, and distribution network far above its accounting book value. The price-to-sales ratio stands at 0.25, and the EV/EBITDA is 80.33, suggesting that valuation is heavily driven by earnings multiples rather than sales multiples, while the high EV/EBITDA reflects the heavy debt load required to reach enterprise value calculations. The stock has traded between a 52-week high of $19.80 and a 52-week low of $17.00, with the current price sitting at a level that requires calculation against the $1.46B market cap to determine exact percentage positioning within the range. The beta is listed as N/A, meaning volatility relative to the broader market cannot be quantified with the provided data, preventing a direct assessment of systematic risk compared to the S&P 500.
Growth & Income
The revenue growth and earnings growth rates are listed as N/A, indicating that year-over-year comparative data is not available in the current dataset to determine if earnings are growing faster or slower than revenue. Since the dividend yield is 0.7% and the payout ratio is 0.0%, the company does not pay a meaningful dividend, which implies that the firm retains earnings rather than distributing them to shareholders. The zero payout ratio suggests that the company reinvests its earnings back into the business to fund operations or reduce debt rather than paying dividends to investors. Consequently, the overall growth and income profile is characterized by low dividend income potential and a reliance on capital appreciation or operational improvements rather than income generation through dividends, as the net income of $32.20M is entirely retained by the entity.