CrossAmerica Partners LP Common Units representing limited partner interests (CAPL)

FairStock Score: 36/100 — MIXED

Key Financials

Strengths

• Generates $97 million in annual free cash flow (12.2% yield on market cap)
• Attractive 9.2% dividend yield providing steady income returns

Concerns

• Revenue declining at 8.3% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

CrossAmerica Partners LP Common Units representing limited partner interests is a micro-cap energy company valued at $798 million. The business generates $3.3 billion in annual revenue with a 0.3% net margin and $97 million in free cash flow. From a quality standpoint, CrossAmerica shows distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is reasonably priced at 15.6x earnings, with 2.8% FCF yield. Growth dynamics show revenue growing at -8.3% and profit growth of -47.8%. The 9.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $97 million in annual free cash flow (12.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer