ARKOArko Corp.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.1×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ARKO?
Arko Corp. earns 9.4% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.39 points above what the capital costs: growth creates value
- Operating margin
- 1.2%
Operating margin · Specialty Retail median 8.1% · 12 months to Q2 2026
- Cash conversion
- 2.13×
Cash conversion · 3.76× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.41%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 2.0% |
| FY2021 | 1.9% |
| FY2022 | 1.8% |
| FY2023 | 1.3% |
| FY2024 | 1.1% |
| FY2025 | 1.3% |
Details›
- Operating margin12 months to Q2 2026
- 1.2%
- Net margin12 months to Q2 2026
- 0.19%
- Free cash flow margin
- 0.46%
- Revenue, trailing twelve months
- $7.93B
- Free cash flow, trailing twelve months
- $37M
- Net income, trailing twelve months
- $15M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.