ARKO Petroleum Corp. Class A Common Stock (APC)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business at a sensible price. ARKO is a fuel distributor, a scale-and-logistics operation spanning Wholesale, Fleet Fueling, and GPMP. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.8B, net income $12.2M, and diluted EPS $0.26. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $1.4B, net income $10.0M, and diluted EPS $0.29. Sales grew, but the net margin was only 0.67%, and per-share profit slipped. That tells me this is a high-volume, low-margin commodity intermediary, not a wide-moat toll bridge. The fiscal Q1 2026 period ended 2026-03-31 showed net income of $8.1M and diluted EPS of $0.20, versus $4.5M and $0.13 in fiscal Q1 2025, so there has been real profit improvement, but one quarter does not make a durable trend. Financial health is mixed: the FairStock-calculated ROE is 64.37%, yet ROCE is only 4.58% and debt-to-equity is 3.04; the Altman Z-Score of 1.88 and Piotroski F-Score of 6/9 suggest some accounting strength but also balance-sheet risk. TTM free cash flow is $32.4M, a 3.8% FCF yield, supporting a 4.05% dividend but not much more. At the 2026-10-13 close of $16.08, the FairStock-calculated P/E is 19.85, P/B 2.97, Graham Number $9.94, and margin of safety -61.77%. The PEG of 0.25 looks cheap only if 78.29% profit growth persists. FairStock score 41/100 and no Lynch category because only 0 years of filed results are available. I would need a wider margin of safety and a longer record.

In plain English: ARKO Petroleum is a fuel distributor in North America, selling fuel through wholesale, fleet fueling and related programs. Its recent quarterly sales and profit rose from a year earlier, but margins are tiny and it owes a lot compared with its size. At $16.08, the stock looks expensive versus the company's modest cash generation and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer