ARKO - Arko: Beware Heavy Debt Load

2024-03-27 06:27:22 ET

Summary

• Arko Corp.'s shares have declined a further 26% since March 2023, as the company continues to underperform financially.
• The main cause of ARKO's weak stock performance has been retail fuel volumes, which continues to contract significantly.
• Arko also has a heavily levered balance sheet that is not well-suited for the current high interest rate environment.
• I remain cautious on the company until its financial performance improves or it can meaningfully delever its balance sheet.

It's been more than a year since I last wrote about Arko Corp. ( ARKO ). Back in March 2023, I noted that despite a 20%+ decline in the stock, Arko was still trading at a premium to peers. Since my article, Arko's shares have continued to underperform, declining by another 26%....

For further details see: