ARKO Corp. (ARKO)

Price$4.89Cached quoteAs of 2026-09-07 09:56 UTC

AI: Undervalued

Price checkAfter a steep post-earnings slide, the stock trades for under four times expected yearly profit.

Lately the whole business changes hands for roughly $0.5 billion in shares; add about $0.43 billion of net debt and the total price is near $0.95 billion. Management reaffirmed full-year expectations of $245–265 million in adjusted operating profit — earnings before interest, taxes, and wear-and-tear charges — so buyers pay under four times that figure. Shares sit almost half below their 52-week high after shedding more than a third across two sessions following results. That price embeds real skepticism about the retail side; the verdict rests on profits holding near current levels, not on heroic growth.

Big pictureProfits lean on fuel margins, which are strong now but swing widely over time.

ARKO runs convenience stores, supplies fuel to independent dealers, and refuels commercial fleets across many U.S. states. Revenue slid from $9.4 billion in 2023 to $7.6 billion in 2025, largely by design: selling company-run stores to dealers shrinks reported sales while keeping steadier wholesale income. Operating profit is thin — about $102 million on 2025 sales — so results hinge on fuel margins, the gap between what ARKO pays for fuel and what customers pay at the pump. Margins are currently resilient, but they are historically volatile, and today's price offers little cushion if they normalize downward.

Business strengthCash flow comfortably covers the small dividend, and debt fell after the fuel unit's listing.

Operations produced $192.6 million of cash last year against $127.3 million of store and equipment investment, leaving roughly $65 million of free cash flow — cash left after running and investing in the business — comfortably covering $13.6 million of dividends. Trailing-year free cash flow tightened toward $37 million as investment rose. Years of buybacks trimmed shares outstanding from about 124 million to 112 million, though repurchases nearly stopped last quarter. Net debt of roughly $429 million sits below two years of operating profit, cut from $607 million after the wholesale unit's springtime listing funded debt repayment.

What could change the storyWhether weakening store traffic stabilizes will decide if today's low price is a bargain.

The bull case needs store traffic to stabilize. Same-store merchandise and fuel volumes slipped in the latest quarter as consumers pulled back, and one brokerage calls retail fundamentals challenged. If remodeled stores, the relaunched rewards app, and converting more stores to dealers revive store-level profit, the valuation could re-rate sharply from today's depressed multiple. If fuel margins fade while store sales keep shrinking, the $245–265 million profit goal looks stretched and the $205 million distributor purchase rebuilds debt. Watch quarterly same-store merchandise sales and fuel margins; both decide whether this cheapness is opportunity or trap.

AI: News

Quarterly report sparks selloffWeak store demand in the latest quarter sent shares down by more than a third in days.

Results released about two weeks ago showed second-quarter adjusted operating profit of $72.0 million, a touch lower than a year earlier, though first-half profit rose 14% to $122.9 million on stronger fuel and merchandise margins; reported net income fell, helped last year by a one-time non-cash gain. Full-year guidance of $245–265 million was reaffirmed, yet shares sank roughly 22% that session and 17% more the next trading day on unusually heavy volume — timing points to disappointment over soft store demand, though attribution isn't certain.

Wholesale arm buys distributorThe company's fuel-wholesale arm agreed to buy a regional distributor, adding scale and yearly profit.

Alongside results, the company said its newly listed wholesale fuel arm agreed to acquire U.S. Petroleum Partners, a Great Lakes fuel supplier and distributor, for $205 million in cash plus inventory and up to $30 million in performance-linked stock. The deal adds roughly 280 million gallons of yearly fuel volume, more than 400 dealer locations, and about $30 million of annualized operating profit. It deepens vertical integration, but some investors may worry about fresh borrowing so soon after using listing proceeds to repay debt.

Broker trims target, stays bullishA major broker cut its price target after earnings but still calls the stock inexpensive.

About a week and a half ago, Raymond James lowered its rating one notch to Outperform from Strong Buy and cut its target price to $7 from $8. The firm still sees a favorable risk-reward over the medium term, citing the low valuation and growth in wholesale and fleet fueling, while calling retail fundamentals challenged and the stock inexpensive. Because the note appeared immediately after the earnings plunge, its effect on the share moves that week can't be cleanly separated from the results themselves.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$7.64B	$8.73B	$9.41B	$9.14B	$7.42B	$4.01B	$4.13B
Operating expenses	$7.55B	$8.63B	$9.28B	$8.97B	$7.27B	$3.92B	$4.12B
Operating income	$102.3M	$94.0M	$118.0M	$167.0M	$142.1M	$80.3M	$1.3M
Operating margin	1.34%	1.08%	1.25%	1.83%	1.92%	2.00%	0.03%
EBITDA	$236.8M	$226.4M	$245.6M	$268.8M	$239.3M	$154.7M	$63.7M
EBITDA margin	3.10%	2.59%	2.61%	2.94%	3.23%	3.86%	1.54%
Net income	$22.7M	$20.8M	$34.4M	$71.7M	$59.2M	$13.7M	−$43.5M
Net profit margin	0.30%	0.24%	0.37%	0.78%	0.80%	0.34%	−1.05%
Basic EPSper basic share	$0.15	$0.13	$0.24	$0.54	$0.43	$0.15	-$0.65
Diluted EPSper diluted share	$0.15	$0.13	$0.24	$0.53	$0.42	$0.15	-$0.65

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

20.63%of listed shares

Davidson Kempner Capital Management LP23.14M shares · Jun 30, 2026

View holders

Top 20 reported holders of ARKO
Holder	% owned
Davidson Kempner Capital Management LP	20.63%23.14M shares
Kotler Arie	≈19.40%21.76M shares
BlackRock, Inc.	5.01%5.62M shares
Invesco Ltd.	3.18%3.57M shares
DIMENSIONAL FUND ADVISORS LP	2.96%3.32M shares
VANGUARD CAPITAL MANAGEMENT LLC	2.42%2.71M shares
ARES MANAGEMENT LLC	1.88%2.11M shares
STATE STREET CORP	1.82%2.04M shares
GEODE CAPITAL MANAGEMENT, LLC	1.78%1.99M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.77%1.98M shares
BROWN ADVISORY INC	1.49%1.68M shares
TWO SIGMA INVESTMENTS, LP	1.19%1.34M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.13%1.27M shares
ACADIAN ASSET MANAGEMENT LLC	1.11%1.24M shares
JANE STREET GROUP, LLC	1.05%1.18M shares
JPMORGAN CHASE & CO	0.99%1.11M shares
FEDERATED HERMES, INC.	0.96%1.08M shares
Nuveen, LLC	0.87%978.51K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	0.81%904.55K shares
GOLDMAN SACHS GROUP INC	0.78%876.56K shares

Percentages use 112.19M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys12$202.8K disclosed value

Sells (SEC code S)4$760.4K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 11, 2026Form 4 · 10b5-1	Bricks MauryGeneral Counsel/Secretary	SellCommon Stock, par value $0.0001 per share	10.0K	$8.50	$85.0K	162.8K
Jun 10, 2026Form 4 · 10b5-1	Bricks MauryGeneral Counsel/Secretary	SellCommon Stock, par value $0.0001 per share	10.0K	$8.00	$80.0K	172.8K
Jun 5, 2026Form 4 · 10b5-1	Bricks MauryGeneral Counsel/Secretary	SellCommon Stock, par value $0.0001 per share	15.0K	$7.69	$115.3K	182.8K
May 21, 2026Form 4	Kotler ArieChairman, President and CEO	SellCall Option (obligation to sell) · derivative · indirect	12.0K	$40.00	$480.0K	12.0K
Mar 17, 2026Form 4	Jeff Charles GalagherChief Financial Officer, EVP	BuyCommon Stock, par value $0.0001 per share	24.2K	$5.08	$122.8K	40.0K