CrossAmerica Partners LP (CAPL)
Valuation Overview•Is CrossAmerica Partners LP Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Fragile underlying quality score of 34/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
CAPL struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-9.7% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (4.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $0.00 | -10.6% | -9.7% | +13.6% | +5.2% | |
| EBITDA | $40.8M | — | +18.8% | — | — | |
| Net Income | $10.7M | +110.3% | -12.3% | — | +13.8% | |
| EPS (Diluted) | $0.28 | +109.6% | -12.6% | -17.6% | +12.0% | |
| Free Cash Flow | $24.5M | -9.3% | -24.8% | -3.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 14.7% | 9.2% | 8.6% | 8.4% |
| Operating Margin | 4.1% | 3.1% | 2.5% | 2.5% |
| Net Margin | 2.0% | 0.8% | 0.9% | 1.3% |
| FCF Margin | 2.7% | 1.6% | 1.8% | 2.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.16 | $0.13 | +181.3% | ||
| Q1'26 | $0.05 | $0.16 | +220.0% | ||
| Q4'25 | $0.07 | $0.15 | +114.3% | ||
| Q3'25 | $0.20 | $0.07 | -65.0% | ||
| Q2'25 | $-0.06 | $-0.20 | -233.3% | ||
| Q1'25 | $0.04 | $0.42 | +950.0% | ||
| Q4'24 | $0.25 | $0.27 | +8.0% | ||
| Q3'24 | $0.06 | $0.16 | +166.7% |
Total return is +12.2% (1Y), lagging the benchmark by -12.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +11.9% | +2.6% | — |
| 1Y | +12.2% | -12.8% | +9.8% |
| 3YCAGR | +12.8% | -7.5% | +31.9% |
| 5YCAGR | +10.9% | -2.0% | +54.3% |
| 10YCAGR | +6.2% | -7.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about CrossAmerica Partners LP (CAPL) valuation, health, and returns.
Based on peer relative multiples, CrossAmerica Partners LP appears Fair versus peers compared to industry peers.
CrossAmerica Partners LP has multiple valuation anchors: Peer Relative Fair Value: $20.91. A convergence of these signals offers higher conviction.
CrossAmerica Partners LP displays weak financial health with a composite quality score of 34/100, supported by a Altman Z-Score of 2.9 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 18.1%.
CrossAmerica Partners LP pays a 9.5% dividend yield, covered by a 192% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
CrossAmerica Partners LP's current growth trajectory is Stable. The company achieved -10.6% 1Y revenue growth and +109.6% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.7%.
Wall Street consensus is Hold based on 15 analysts, beating EPS expectations in 75% of recent quarters with a 3-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for CrossAmerica Partners LP include: -14.6% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of -0.07x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.