Start here if you're new
what it is
ARKO runs convenience stores, supplies fuel to dealers, and serves commercial fleets across more than 30 states.
how it gets paid
Last year Arko made ~$8.7B in revenue. Retail convenience was the largest piece at ~$6.1B (~70%); wholesale / dealer fuel supply was ~$2.6B (~30%).
what just happened
Latest quarter EPS came in around $0.14, up materially vs. prior year, with consolidated net sales on the order of ~$2B for the quarter versus ~$8.7B for the full year.
At a glance
C+ balance sheet — struggling to keep the lights on
35/100 earnings predictability — expect surprises
42.1x trailing p/e — you're paying up for this one
2.3% dividend yield — cash in your pocket every quarter
4.8% return on capital — nothing to write home about
xvary composite: 38/100 — weak
What they do
ARKO runs convenience stores, supplies fuel to dealers, and serves commercial fleets across more than 30 states.
ARKO wins on reach. It operated 1,389 stores, supplied fuel to 1,922 dealer locations, and ran 280 cardlock sites as of December 31, 2024. That scale gives you more places to sell fuel, snacks, and fleet services from the same network, which is plain English for local density that smaller operators cannot match.
How they make money
$8.7B
annual revenue
retail convenience stores
$6.1B
wholesale / dealer fuel supply
$2.6B
The products that matter
convenience store operations
Retail
$6.1B · about 70% of revenue
it's the larger segment at $6.1B, and it's where store traffic, fuel gallons, and inside sales have to do the heavy lifting.
core segment
third-party fuel supply
Wholesale Fuel
$2.6B · about 30% of revenue
this is a $2.6B business across more than 30 states. it gives you reach, but thin spreads mean revenue scale does not automatically become profit scale.
scale, thin spreads
customer loyalty app
fas rewards mobile app
initiative · no adoption data here
it only matters if it lifts repeat visits across 1,500+ stores. this page gives you no adoption figure, so treat it as an initiative, not an investment thesis.
watch, don't assume
Key numbers
$2.5B
long-term debt
This matters because the debt pile is over 4 times the roughly $583 million market cap, which leaves equity holders last in line.
42.1x
trailing p/e
Price-to-earnings ratio → how many years of current profit you are paying for → you are paying a lot for a company that earned just $0.13 in 2024.
4.8%
return on capital
Return on capital → profit generated from the money tied up in the business → 4.8% is weak for a retail and fuel operator.
2.3%
dividend yield
Dividend yield → your cash payout on the stock price → you get some income, but it is small next to the balance-sheet risk.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $2.5B (81% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for ARKO right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarterly EPS came in at $0.14, up sharply vs. prior year, on consolidated net sales around ~$2B for the quarter (FY base still ~$8.7B).
Consolidated net sales for a single quarter sit around ~$2B against the ~$8.7B FY base— a normal seasonal slice, not a negative revenue number. EPS is still thin relative to debt, but the top line is real volume.
~$2B
quarter net sales
$0.14
quarter eps
~$8.7B
FY revenue (context)
the number that mattered
$0.14 mattered most because it showed the quarter stayed profitable on a per-share basis— still thin versus $2.5B of long-term debt.
source: company earnings report, 2026
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What could go wrong
the #1 risk is debt-heavy economics in a low-margin convenience and fuel model.
high
$2.5B of debt sits on a $583M equity story
long-term debt is $2.5B, or 81% of capital. that means refinancing terms and interest expense matter more here than they would for a cleaner retailer.
if operating profit slips, the balance sheet stops being background noise and becomes the whole story.
med
100% of revenue comes from businesses with little room for error
all $8.7B of revenue comes from convenience retail and wholesale fuel. those categories can produce volume, but they do not hand out easy margins.
4.8% return on capital tells you one bad operating stretch can wipe out a lot of the value case.
med
the stock still needs an earnings rerating
ARKO looks cheap against $8.7B of sales, but 42.1x trailing earnings says the profit base is thin. if earnings wobble again, the market does not have much reason to pay up.
you are not just buying stores. you are buying the hope that those stores start producing better earnings than they do today.
with $2.5B of long-term debt, 81% debt as a share of capital, and only 4.8% return on capital, ARKO has very little room for operating mistakes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
event
next earnings call
Watch for commentary on store-level profitability, fuel margins, and whether ~$0.14-style quarterly EPS is durable or just a thin baseline before debt and interest bite.
risk
debt reduction
with $2.5B in long-term debt, the financing story matters almost as much as the retail story. you want to hear about debt coming down, not just gallons sold.
metric
return on capital
4.8% is the number to beat. if that number does not improve, the cheap-on-sales argument stays cosmetic.
missing number
fas rewards adoption
if management keeps talking about the app, the number you need is usage. no adoption metric means no proof beat yet.
Analyst rankings
earnings predictability
35 / 100
low predictability means the earnings line is hard to trust quarter to quarter. in human-speak: expect noise.
price stability
20 / 100
this does not trade like a sleepy gas-station stock. the business may look simple. the share price does not.
risk rank
3
broad screens call it middle of the pack. your actual problem is narrower: a debt-heavy capital structure attached to thin earnings.
source: institutional data
Institutional activity
institutional ownership data for ARKO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4.63
current price
n/a
target midpoint · n/a from current
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