Breaking Down CrossAmerica Partners LP (CAPL) Financial Health: Key Insights for Investors

Are you keeping a close watch on CrossAmerica Partners LP (CAPL)? Understanding their financial health is crucial for making informed investment decisions. In 2024, CAPL reported a net income of $22.5 million, a decrease from $42.6 million in 2023, alongside a notable increase of 25% in operating expenses. With a quick ratio of just 0.22 and a current ratio of 0.73 as of December 31, 2024, how stable is their financial foundation? Dive in to explore key insights and what these figures mean for investors like you.

CrossAmerica Partners LP (CAPL) Revenue Analysis

Understanding CrossAmerica Partners LP (CAPL)'s revenue streams is crucial for investors seeking to assess the company's financial health and stability. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights into the company's performance and future prospects.

CrossAmerica Partners LP (CAPL) is a leading wholesale distributor of motor fuels, convenience store operator, and owner/lessor of real estate used in the retail distribution of motor fuels. Formed in 2012, CAPL distributes branded and unbranded petroleum for motor vehicles in the United States, serving approximately 1,600 locations and owning or leasing around 1,100 sites across 34 states.

The company operates through two primary business segments:

• Wholesale: This segment involves the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents, DMS, Circle K, and company-operated retail sites.
• Retail: This includes the sale of convenience merchandise items and the retail sale of motor fuel at company-operated retail sites and those operated by commission agents.

For the full year 2024, CrossAmerica Partners LP reported a revenue of $3.78 billion. This represents a decrease of $314.01 million, or 7.68%, compared to the previous year.

Here's a look at the year-over-year revenue growth rate trends:

• 2024: -7.68% ($3.78 billion)
• 2023: -12.91% ($4.09 billion)
• 2022: 40.19% ($4.70 billion)
• 2021: 87.09% ($3.35 billion)
• 2020: -13.54% ($1.79 billion)

In the fourth quarter of 2024, CrossAmerica Partners LP reported a net income of $16.9 million, compared to $16.7 million in the fourth quarter of 2023. The company's adjusted EBITDA was $35.5 million, and distributable cash flow was $21.1 million, versus an adjusted EBITDA of $47.6 million and distributable cash flow of $35.8 million for the same period in the previous year.

For the full year 2024, CrossAmerica Partners LP reported a net income of $22.5 million, with an adjusted EBITDA of $145.5 million and distributable cash flow of $86.0 million. This compares to a net income of $42.6 million, adjusted EBITDA of $165.8 million, and distributable cash flow of $116.7 million for the full year 2023.

Gross profit contribution by segment for the full year 2024:

• Retail Segment: $289.7 million (compared to $253.5 million in 2023)
• Wholesale Segment: $108.6 million (compared to $128.8 million in 2023)

The retail segment experienced a 5% increase in gross profit for the fourth quarter of 2024, reaching $75.1 million, up from $69 million in the same period of 2023. This growth was supported by a 2% increase in same-store volume, which outperformed the national gasoline demand that declined by approximately 4%.

The merchandise segment also showed positive results, with gross profit increasing by 27% to $28.1 million, driven by higher sales due to an increased store count.

Conversely, the wholesale segment faced challenges, with a 22% decline in gross profit during the fourth quarter, attributed to a decrease in distribution sites and fuel margins.

Here is a summary of key financial data for CrossAmerica Partners LP:

For more insights into CrossAmerica Partners LP, consider exploring this related resource: Exploring CrossAmerica Partners LP (CAPL) Investor Profile: Who’s Buying and Why?

CrossAmerica Partners LP (CAPL) Profitability Metrics

When evaluating the financial health of CrossAmerica Partners LP (CAPL), a close examination of its profitability metrics is crucial. These metrics provide insights into how efficiently the company is generating profits from its revenue and assets. Below is an analysis of the company's gross profit, operating profit, and net profit margins, as well as trends in profitability over time.

For the full year 2024, CrossAmerica Partners LP reported a net income of $22.5 million. However, it's important to note that this is a decrease compared to the full year 2023, where the net income was $42.6 million.

Here's a breakdown of CrossAmerica Partners LP's gross profit for 2024:

• Retail Segment: $289.7 million (up from $253.5 million in 2023)
• Wholesale Segment: $108.6 million (down from $128.8 million in 2023)

For the third quarter of 2024, CrossAmerica Partners LP reported a net income of $10.7 million, a decrease from $12.3 million in the same period of the prior year.

Here's a summary of the third quarter 2024 gross profit:

• Retail Segment: $83.6 million (up from $67.6 million in 2023)
• Wholesale Segment: $27.6 million (down from $32.9 million in 2023)

In the fourth quarter of 2024, CrossAmerica Partners LP reported a net income of $16.9 million, slightly up from $16.7 million in the same period the previous year.

Here's a breakdown of the gross profit for the fourth quarter of 2024:

• Retail Segment: $75.1 million (compared to $69.0 million in Q4 2023)
• Wholesale Segment: $25.9 million (compared to $33.0 million in Q4 2023)

In the second quarter of 2024, CrossAmerica Partners LP reported a net income of $12.4 million, compared to $14.5 million for the second quarter of 2023.

Here is the gross profit for the second quarter of 2024:

• Retail Segment: $76.6 million (compared to $66.0 million for the second quarter of 2023)
• Wholesale Segment: $28.1 million (compared to $31.7 million for the second quarter of 2023)

In the first quarter of 2024, CrossAmerica Partners LP reported a net loss of $17.5 million, which includes a $15.9 million loss on lease terminations with Applegreen.

Here is the gross profit for the first quarter of 2024:

• Wholesale Segment: $27.0 million (compared to $31.2 million for the first quarter of 2023)
• Retail Segment: $54.4 million (compared to $50.8 million for the first quarter of 2023)

Here is a table summarizing key profitability margins for CrossAmerica Partners LP:

The company's focus on retail expansion aligns with industry shifts towards integrated retail models, which positions CrossAmerica to capture more value across the fuel distribution chain.

To gain a deeper understanding of CrossAmerica Partners LP's values, explore their Mission Statement, Vision, & Core Values of CrossAmerica Partners LP (CAPL).

CrossAmerica Partners LP (CAPL) Debt vs. Equity Structure

Understanding CrossAmerica Partners LP (CAPL)'s financial health requires a close examination of its debt and equity structure. This involves assessing the levels of debt the company holds, comparing its debt-to-equity ratio against industry benchmarks, and analyzing any recent financing activities. By evaluating these factors, investors can gain insights into how CAPL funds its operations and growth.

CrossAmerica Partners LP (CAPL) employs a mix of debt and equity to finance its growth and operations. Here’s a breakdown:

• Debt Levels: Analysis of CrossAmerica Partners LP (CAPL)'s debt includes both short-term and long-term obligations.
• Debt-to-Equity Ratio: This ratio is a critical metric for understanding the proportion of debt and equity used to finance the company's assets.
• Financing Activities: Monitoring recent debt issuances, credit ratings, and refinancing efforts provides insights into CrossAmerica Partners LP (CAPL)'s financial strategies.

CrossAmerica Partners LP (CAPL)'s approach to balancing debt and equity is vital for maintaining financial stability and supporting future growth initiatives. Here's a closer look at these aspects:

As of the fiscal year 2024, CrossAmerica Partners LP (CAPL) reported the following:

• Total Debt: CrossAmerica Partners LP (CAPL) has a significant amount of outstanding debt, which is used to fund its operations and expansion.
• Long-Term Debt: A substantial portion of CrossAmerica Partners LP (CAPL)'s debt is long-term, indicating investments in long-term assets and projects.
• Short-Term Debt: CrossAmerica Partners LP (CAPL) also utilizes short-term debt to manage immediate financial needs and operational expenses.

The debt-to-equity ratio is a key indicator of CrossAmerica Partners LP (CAPL)'s financial leverage. A lower ratio generally suggests a more conservative financing approach, while a higher ratio may indicate a more aggressive strategy. Industry standards vary, but comparing CrossAmerica Partners LP (CAPL)'s ratio to its peers provides valuable context.

Recent activities in debt management can significantly impact CrossAmerica Partners LP (CAPL)'s financial position. For example:

• Debt Issuances: New debt issuances can provide CrossAmerica Partners LP (CAPL) with additional capital for investments but also increase its debt burden.
• Credit Ratings: Changes in credit ratings can affect CrossAmerica Partners LP (CAPL)'s borrowing costs and investor confidence.
• Refinancing: Refinancing activities can help CrossAmerica Partners LP (CAPL) lower its interest rates or extend its debt maturities, improving its financial flexibility.

Balancing debt and equity is crucial for CrossAmerica Partners LP (CAPL). While debt can provide necessary capital for growth, excessive debt can increase financial risk. Equity funding, on the other hand, can dilute ownership but provides a more stable financial base.

Here is a sample table illustrating how debt and equity might appear in CrossAmerica Partners LP (CAPL)'s financial statements (Note: This is an illustrative example and not actual data):

For more detailed insights into CrossAmerica Partners LP (CAPL)'s financial health, you can read the full analysis here: Breaking Down CrossAmerica Partners LP (CAPL) Financial Health: Key Insights for Investors

CrossAmerica Partners LP (CAPL) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities. For CrossAmerica Partners LP (CAPL), analyzing these metrics provides insights into its operational efficiency and financial stability.

Assessing CrossAmerica Partners LP's Liquidity:

Liquidity ratios, such as the current and quick ratios, offer a snapshot of CrossAmerica Partners LP's (CAPL) ability to cover its current liabilities with its current assets. A higher ratio generally indicates a stronger liquidity position. Here's how to interpret these ratios:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets. The formula is Current Assets / Current Liabilities.
• Quick Ratio: Also known as the acid-test ratio, this is a more conservative measure than the current ratio, as it excludes inventory from current assets. The formula is (Current Assets - Inventory) / Current Liabilities.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a measure of a company's short-term financial health. Monitoring trends in working capital can reveal whether CrossAmerica Partners LP (CAPL) is efficiently managing its short-term assets and liabilities. A positive and increasing working capital balance typically suggests improving liquidity, while a negative or decreasing balance may signal potential challenges.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at all the cash inflows and outflows that occur at a company. It is usually broken down into three main sections:

• Operating Activities: Cash flow from the normal day-to-day business activities.
• Investing Activities: Cash flow from the purchase and sale of long-term assets.
• Financing Activities: Cash flow from debt, equity, and dividends.

Analyzing these trends can provide insights into CrossAmerica Partners LP's (CAPL) ability to generate cash, manage investments, and fund its operations.

Potential Liquidity Concerns or Strengths:

Investors should be aware of any potential liquidity concerns, such as consistently low current and quick ratios, negative working capital, or negative operating cash flow. Conversely, strengths may include high cash reserves, positive working capital trends, and strong operating cash flow. Monitoring these indicators over time can help investors assess the sustainability of CrossAmerica Partners LP's (CAPL) financial position.

Here is a sample table illustrating how these metrics might be tracked over a period of three years:

For more detailed insights into CrossAmerica Partners LP's (CAPL) financial health, you can refer to this comprehensive analysis: Breaking Down CrossAmerica Partners LP (CAPL) Financial Health: Key Insights for Investors.

CrossAmerica Partners LP (CAPL) Valuation Analysis

When evaluating whether CrossAmerica Partners LP (CAPL) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Here's a breakdown of these elements:

• Price-to-Earnings (P/E) Ratio: As of April 2025, the P/E ratio for CAPL is around 44.29. This is above the 3-year average of 24.26 and the 5-year average of 22.66, suggesting the stock might be relatively overvalued compared to its historical P/E. The P/E ratio compared to peers is lower than CRMT at 51, but higher than GLP at 20.74 and SGU at 10.04.

• Price-to-Book (P/B) Ratio: The P/B ratio is not consistently reported across all sources, with some indicating a negative book value per share. A recent P/B Ratio is -16.3x. Given the inconsistent data, it's challenging to draw a definitive conclusion using this metric.

• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio for CAPL is approximately 12.16. This ratio indicates how many years it would take for a company to pay back its enterprise value based on its EBITDA. Compared to historical data, this is within a reasonable range.

Here is a table summarizing some of the key valuation measures:

Stock price trends over the last 12 months show a 52-week range of $18.43 to $25.73. As of April 17, 2025, the stock price was around $23.03. Recent performance shows a 1-Year Change of 3.04%. These trends indicate moderate stability over the past year.

Dividend Yield and Payout Ratios:

• Dividend Yield: CAPL has a current dividend yield of approximately 9.12% to 9.35%, which is higher than the Energy sector average.

• Annual Dividend: The annual dividend is $2.10 per share.

• Payout Ratio: The dividend payout ratio is notably high, around 403.85%. A high payout ratio can indicate that the dividend may not be sustainable in the long term, as it exceeds the company's earnings.

Analyst consensus on CAPL stock valuation varies. Ratings range from 'underweight' to 'sector perform,' with price targets around $15 to $18. One analyst expects earnings to decrease by -47.62% in the coming year, from $0.42 to $0.22 per share.

Based on a recent analysis, CAPL is considered a hold candidate, awaiting further development due to some weaknesses in the technical picture.

To gain more insights into CrossAmerica Partners LP (CAPL), you might find this resource helpful: Mission Statement, Vision, & Core Values of CrossAmerica Partners LP (CAPL).

CrossAmerica Partners LP (CAPL) Risk Factors

CrossAmerica Partners LP (CAPL) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and financial challenges detailed in their earnings reports and filings.

Industry Competition: The convenience store and fuel distribution sectors are highly competitive. CAPL competes with major integrated oil companies, other large convenience store chains, and independent operators. This competition can pressure profit margins and market share, especially if competitors offer lower prices or more attractive services.

Regulatory Changes: CAPL's operations are subject to extensive federal, state, and local regulations, including those related to environmental protection, workplace safety, and the sale of fuel and other products. Changes in these regulations can increase compliance costs, require significant capital expenditures, and potentially limit operational flexibility. For example, stricter environmental regulations regarding underground storage tanks or fuel specifications could necessitate costly upgrades or replacements.

Market Conditions: Fluctuations in fuel prices and consumer spending habits significantly affect CAPL's revenue and profitability. Economic downturns can reduce consumer demand for fuel and convenience store products, while volatile fuel prices can impact margins and inventory values. Additionally, the increasing adoption of electric vehicles poses a long-term threat to traditional fuel retailers.

Operational Risks:

• Supply Chain Disruptions: Disruptions in the supply of fuel or other essential products can adversely affect CAPL's ability to meet customer demand and maintain sales volumes.
• Cybersecurity Threats: As a retailer that handles a significant volume of customer data and financial transactions, CAPL is vulnerable to cybersecurity breaches. A successful cyberattack could result in financial losses, reputational damage, and legal liabilities.
• Integration Risks: CAPL's growth strategy often involves acquisitions. Integrating acquired businesses can be complex and may not always yield the expected synergies or cost savings.

Financial Risks: CAPL's financial health is also subject to several risks:

• Debt Levels: CAPL relies on debt financing to fund acquisitions and capital expenditures. High debt levels can increase interest expenses and reduce financial flexibility.
• Distributions to Unitholders: As a master limited partnership (MLP), CAPL is required to distribute a significant portion of its cash flow to unitholders. This can limit the company's ability to reinvest in the business or reduce debt.
• Interest Rate Risk: Fluctuations in interest rates can impact the cost of CAPL's debt and reduce its profitability.

Strategic Risks:

• Failure to Innovate: The convenience store industry is evolving rapidly, with increasing demand for healthier food options, digital payment solutions, and enhanced customer experiences. CAPL must innovate to remain competitive and attract customers.
• Labor Market: Changes in minimum wage laws and the availability of qualified employees could affect CAPL’s operating expenses.

While specific mitigation strategies may vary and are often detailed in company filings, common approaches include:

• Diversifying supply sources to minimize disruptions.
• Investing in cybersecurity infrastructure and training.
• Implementing hedging strategies to manage fuel price volatility.
• Maintaining strong relationships with suppliers and customers.

For further insights into CrossAmerica Partners LP (CAPL) financial health, you can refer to this resource: Breaking Down CrossAmerica Partners LP (CAPL) Financial Health: Key Insights for Investors

CrossAmerica Partners LP (CAPL) Growth Opportunities

CrossAmerica Partners LP (CAPL) is positioned to pursue several growth avenues, capitalizing on its established infrastructure and market presence. Key strategies include optimizing existing operations, expanding its retail footprint, and leveraging strategic partnerships.

Analysis of key growth drivers:

• Product Innovations: CAPL can enhance its offerings by incorporating innovative products and services at its retail locations, such as EV charging stations or enhanced food service options.
• Market Expansions: Expanding into new geographic markets or increasing its presence in existing markets through acquisitions or new site developments.
• Acquisitions: Strategic acquisitions of other convenience store chains or fuel distribution businesses to increase market share and operational synergies.

Future revenue growth projections and earnings estimates will depend on several factors, including fuel margins, retail sales performance, and the successful integration of acquired businesses. While specific forward-looking projections are subject to market conditions and company performance, understanding these drivers is crucial for investors. For instance, in the 2024 fiscal year, CAPL reported total revenues of $2.8 billion, reflecting its significant market presence.

Strategic initiatives and partnerships that may drive future growth:

• Strategic Partnerships: Collaborating with other businesses, such as food service providers or technology companies, to enhance its retail offerings and customer experience.
• Supply Agreements: Securing favorable supply agreements with major fuel suppliers to ensure a stable and cost-effective supply of fuel for its retail locations.

Competitive advantages that position the company for growth:

• Prime Locations: CAPL benefits from having retail locations in high-traffic areas, which provide a steady stream of customers and sales.
• Strong Brand Recognition: CAPL has established a strong brand presence in the convenience store and fuel retail industry, which helps attract and retain customers.
• Operational Efficiency: CAPL focuses on optimizing its operations to reduce costs and improve profitability, which provides a competitive edge in the market.

Here's an overview of some financial data points from CrossAmerica Partners LP:

For further insights into CrossAmerica Partners LP (CAPL) financial health, you can read more here: Breaking Down CrossAmerica Partners LP (CAPL) Financial Health: Key Insights for Investors