ARKO Corp. (HYAC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ingles Markets, Inc.

Rush Street Interactive, Inc.

Sprouts Farmers Market, Inc.

Natural Grocers by Vitamin Cottage, Inc.

ARKO Corp.

Village Super Market, Inc.

GeneDx Holdings Corp.

Weis Markets, Inc.

Grocery Outlet Holding Corp.

Albertsons Cos., Inc.

The Kroger Co.

Why is ARKO Corp. ?

Healthy long term growth as Net Sales has grown by an annual rate of 34.61% and Operating profit at 2.26%

The company has declared Negative results for the last 5 consecutive quarters

NET SALES(HY) At USD 4,020.35 MM has Grown at -13.86%
INVENTORY TURNOVER RATIO(HY) Lowest at 34.61 times

With ROCE of 8.88%, it has a expensive valuation with a 1.18 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.82%, its profits have fallen by -81.2%

High Institutional Holdings at 62.67%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 33.82% in the last 1 year, much higher than market (S&P 500) returns of 11.87%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ARKO Corp. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ARKO Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ARKO Corp.

54.38%

-0.21

52.25%

S&P 500

30.63%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.61%

EBIT Growth (5y)

2.26%

EBIT to Interest (avg)

1.64

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

1.89

Sales to Capital Employed (avg)

6.70

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

92.95%

Pledged Shares

Institutional Holding

62.67%

ROCE (avg)

16.10%

ROE (avg)

15.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

102

Industry P/E

Price to Book Value

1.50

EV to EBIT

13.27

EV to EBITDA

5.39

EV to Capital Employed

1.18

EV to Sales

0.16

PEG Ratio

Dividend Yield

0.85%

ROCE (Latest)

8.88%

ROE (Latest)

1.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

PRE-TAX PROFIT(Q)

At USD 16.34 MM has Grown at 419.93%

NET PROFIT(Q)

At USD 13.94 MM has Grown at 2,272.05%

RAW MATERIAL COST(Y)

Fallen by -11.28% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 68.12 times

-3What is not working for the Company

NET SALES(HY)

At USD 4,020.35 MM has Grown at -13.86%

INVENTORY TURNOVER RATIO(HY)

Lowest at 34.61 times

Here's what is working for ARKO Corp.

Pre-Tax Profit

At USD 16.34 MM has Grown at 419.93%

over average net sales of the previous four periods of USD 3.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 13.94 MM has Grown at 2,272.05%

over average net sales of the previous four periods of USD 0.59 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 68.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -11.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for ARKO Corp.

Net Sales

At USD 4,020.35 MM has Grown at -13.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 34.61 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio