Arko Corp Intrinsic Value – ARKO CORP Reports Q2 Earnings for FY 2023 on June 30th
August 15, 2023
🌥️Earnings Overview
On June 30 2023, ARKO CORP ($NASDAQ:ARKO) released their financial results for the second quarter of fiscal year 2023. Total revenue was USD 2469.1 million, a drop of 2.8% compared to the same quarter of the previous year. Net income was USD 14.4 million, representing a decrease of 54.6% from the same period in the prior year.
Market Price
On Monday, June 30th, ARKO CORP reported its earnings for the second quarter of the financial year 2023. The company’s stock opened at $8.0 and closed at $8.1, representing a 0.7% increase from the previous closing price of $8.0. The financial report highlighted that ARKO CORP had achieved some progress in its operations in the second quarter of FY 2023.
Overall, the results from ARKO CORP were in line with the expectations of analysts and investors, which gave investors confidence that the company is well-positioned to achieve further growth in the coming quarters. The stock price increased slightly as a result, reflecting investors’ positive sentiment towards the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arko Corp. More…
| Total Revenues | Net Income | Net Margin |
| 9.19k | 43.85 | 0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arko Corp. More…
| Operations | Investing | Financing |
| 183.08 | -388.11 | 177.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arko Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.67k | 3.29k | 3.18 |
Key Ratios Snapshot
Some of the financial key ratios for Arko Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.3% | 401.5% | 1.7% |
| FCF Margin | ROE | ROA |
| 0.9% | 25.6% | 2.6% |
Analysis – Arko Corp Intrinsic Value
At GoodWhale, we recently conducted an analysis of ARKO CORP‘s fundamentals to analyze the company’s value. Using our proprietary Valuation Line, which is based on our proprietary data models and algorithms, we have calculated a fair value of $13.2 per share. This fair value is 38.8% higher than the current market price of $8.1 per share, meaning that ARKO CORP’s stock is significantly undervalued. We believe that this undervaluation presents a great opportunity to invest in the company and take advantage of the current market conditions. More…
Peers
It has several competitors in the industry, such as Com7 PCL, Valora Holding AG, and Central Retail Corp PCL. Each of these companies is striving to offer the most efficient and cost-effective solutions to its customers. Despite the competition, ARKO Corp remains at the forefront of the industry, offering quality solutions and services.
– Com7 PCL ($SET:COM7)
PCL is a diversified conglomerate with operations in the construction, engineering, real estate, energy and environmental services, forestry and manufacturing sectors. Founded in 1925, the company has grown to become Canada’s largest owner of office and retail space, with a market cap of 81.09 billion dollars as of 2023. PCL’s strong financial performance is reflected in its Return on Equity (ROE). PCL holds a 41.93% ROE as of 2023, indicating that it has been successful in generating returns for its shareholders. With its strong balance sheet, PCL is well-positioned to continue to expand and deliver value for its shareholders over the long-term.
– Valora Holding AG ($LTS:0QLE)
Valora Holding AG is a Swiss-based company that specializes in the retail, food, and beverage industries. With a market cap of 1.12B as of 2023, Valora Holding AG is a well-established company that has been in the industry for many years. Its Return on Equity (ROE) of 2.94% shows that the company is making good use of its equity to generate profits. The company is well-positioned in the market and continues to grow with its presence in more than 2,000 locations across Europe.
– Central Retail Corp PCL ($SET:CRC)
Central Retail Corporation Public Company Limited (CRC) is a leading retail conglomerate in Thailand and Southeast Asia. Founded in 1979, the company operates a multi-format retail network comprising of department stores, specialty stores, supermarkets, convenience stores, and online stores. As of 2023, the company has a market capitalization of 278.93 billion baht and an impressive Return on Equity (ROE) of 11.38%. This is a clear indication of the company’s strength in terms of profitability and efficiency. The company’s diversified portfolio of retail businesses, combined with its strong financial performance, has enabled CRC to remain competitive and successful in the retail industry.
Summary
Investors may be wary of ARKO CORP‘s poor performance in the second quarter of FY 2023. Revenue declined by 2.8% year-over-year while net income dropped 54.6%. Despite the decline in earnings, ARKO CORP has a long-term track record of success and consistent dividend payments, which may entice investors who are looking for a stable stock with potential upside. Given the high price-to-earnings ratio, investors may want to consider if the risk is worth the potential reward.
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