ARKO Corp. Common Stock (ARKO)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

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

I look for durable economics, honest accounting, and a price that leaves room for error. Arko is a convenience-store and fuel retailer that reported revenue of $2.3 billion in fiscal Q2 2026, the quarter ended 2026-06-30, but only $6.1 million of net income—a 0.26% margin. In fiscal Q2 2025, the quarter ended 2025-06-30, net income was $20.1 million, so the profit pullback is severe. Full-year figures show the challenge: revenue was $9.4 billion in FY2023, $8.7 billion in FY2024, and $7.6 billion in FY2025; net income moved from $34.4 million to $20.8 million to $22.7 million. The FairStock Lynch classification calls it a STALWART because profits grew 10.7% a year over five years and revenue 13.8%, but the recent trend contradicts that label. Financial health is mixed. FairStock's Piotroski F-score is 7/9, and trailing free cash flow is $36.7 million, an 8.0% FCF yield at the $4.10 close on 2026-10-13. Yet FairStock's debt-to-equity is 4.09, ROCE is 1.99%, ROE is 4.09%, and the Altman Z-score is 0.91—distress territory. Valuation offers no classic Graham comfort: FairStock's Graham Number is $2.84, giving a -44.37% margin of safety, and FairStock's P/E is 51.25. EV/EBITDA is 10.48. I would want proof that margins and cash flow can recover before calling this a bargain.

In plain English: Arko runs convenience stores and fuel stations. The business looks weak right now: sales are large, but profits are small and fell sharply in the latest quarter. At $4.10, the shares look expensive compared with current profit, though cash generation and the value of its assets minus debts offer some support.

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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 Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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