CrossAmerica Partners LP (CAPL) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

CrossAmerica Partners LP (CAPL) Energy Operations & Outlook

CrossAmerica Partners LP, operating in the energy sector, focuses on wholesale motor fuel distribution and convenience store operations. With a widespread network of approximately 1,750 sites across 34 states, the company leases and owns retail locations, providing a consistent revenue stream in the competitive oil and gas market.

What Is the Investment Thesis for CAPL?

CrossAmerica Partners LP presents a compelling, albeit risky, investment case centered on its established distribution network and retail operations in the motor fuels market. With a dividend yield of 10.14%, CAPL offers substantial income potential for investors seeking yield. However, the company's relatively low profit margin of 0.8% and gross margin of 7.0% indicate potential challenges in profitability. Key growth catalysts include expanding its retail footprint and optimizing its wholesale distribution network. The company's beta of 0.34 suggests lower volatility compared to the broader market. The company's ability to maintain and grow its distribution network, coupled with effective cost management, will be critical to its long-term success. Investors should closely monitor the company's financial performance and strategic initiatives to assess its ability to deliver sustainable value.

Based on FMP financials and quantitative analysis

CAPL Key Highlights

Market capitalization of $874M, reflecting its position in the oil and gas refining and marketing industry.

• P/E ratio of 16.13, indicating the price investors are willing to pay for each dollar of earnings.
• Dividend yield of 10.14%, offering a substantial income stream for investors.
• Gross margin of 7.0%, showing the percentage of revenue exceeding the cost of goods sold.
• Beta of 0.34, suggesting lower volatility compared to the broader market.

Who Are CAPL's Competitors?

CAPL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CAPL's Key Strengths?

Extensive distribution network across 34 states.

• Diversified revenue streams from wholesale and retail operations.
• Strategic real estate holdings in high-traffic locations.
• High dividend yield of 10.14%.

What Are CAPL's Weaknesses?

Low profit margin of 0.8%.

• Low gross margin of 7.0%.
• Dependence on fluctuating fuel prices.
• Exposure to regulatory changes in the energy sector.

What Could Drive CAPL Stock Higher?

Potential acquisitions of additional retail sites to expand market presence.

• Optimization of the wholesale distribution network to reduce costs and increase efficiency.
• Implementation of enhanced customer loyalty programs to drive sales and increase customer retention.
• Exploration of strategic partnerships to expand product offerings and market reach.

What Are the Key Risks for CAPL?

Negative return on equity (-85.4%) — the business is not currently generating profit on shareholder capital.

• Fluctuations in fuel prices that could impact profitability.
• Increasing competition from other fuel distributors and retailers.
• Shift towards electric vehicles and alternative transportation methods that could reduce demand for motor fuels.
• Regulatory changes in the energy sector that could increase compliance costs.
• Economic downturns that could reduce consumer spending on fuel and convenience items.

What Are the Growth Opportunities for CAPL?

• Expansion of Retail Network: CrossAmerica Partners LP has the opportunity to expand its retail network by acquiring or leasing additional sites in strategic locations. The convenience store market is projected to grow, driven by increasing consumer demand for on-the-go snacks and beverages. By increasing its retail footprint, CAPL can increase its revenue and market share. This expansion could involve partnering with existing retailers or developing new sites. The timeline for this growth opportunity is ongoing, with continuous evaluation of potential sites and partnerships.
• Optimization of Wholesale Distribution: CrossAmerica Partners LP can optimize its wholesale distribution network by improving logistics and supply chain management. By streamlining its operations, CAPL can reduce costs and increase efficiency. This optimization could involve investing in new technologies, such as route optimization software and inventory management systems. The timeline for this growth opportunity is ongoing, with continuous improvements being implemented over time.
• Strategic Partnerships: CrossAmerica Partners LP can form strategic partnerships with other companies in the energy sector to expand its reach and offerings. These partnerships could involve collaborating with fuel suppliers, technology providers, or other retailers. By leveraging the strengths of its partners, CAPL can enhance its competitive position and drive growth. The timeline for this growth opportunity is ongoing, with continuous exploration of potential partnerships.
• Diversification of Product Offerings: CrossAmerica Partners LP can diversify its product offerings to include alternative fuels and electric vehicle charging stations. As the demand for these products increases, CAPL can capitalize on this trend by offering them at its retail sites. This diversification could involve investing in new infrastructure and equipment. The timeline for this growth opportunity is medium-term, with gradual implementation over the next few years.
• Enhanced Customer Loyalty Programs: CrossAmerica Partners LP can implement enhanced customer loyalty programs to increase customer retention and drive sales. These programs could involve offering discounts, rewards, or other incentives to loyal customers. By building stronger relationships with its customers, CAPL can increase its revenue and market share. The timeline for this growth opportunity is short-term, with immediate implementation and ongoing optimization.

What Are CAPL's Competitive Advantages?

• Extensive distribution network across 34 states, creating a barrier to entry for new competitors.
• Long-term relationships with fuel suppliers and retail operators, providing a stable supply chain.
• Strategic real estate holdings in high-traffic locations, ensuring consistent customer flow.
• Established brand presence and customer loyalty in key markets.

What Does CAPL Do?

Founded in 1992 and headquartered in Allentown, Pennsylvania, CrossAmerica Partners LP (CAPL) has evolved into a key player in the wholesale distribution of motor fuels and the operation of convenience stores. Originally known as Lehigh Gas Partners LP, the company rebranded in October 2014 to CrossAmerica Partners LP. CAPL operates through two primary segments: Wholesale and Retail. The Wholesale segment focuses on distributing motor fuels to a diverse network of lessee dealers, independent dealers, commission agents, and company-operated retail sites. The Retail segment concentrates on the sale of convenience merchandise items and the retail sale of motor fuels at company-operated retail sites and those managed by commission agents. As of December 31, 2021, CrossAmerica Partners distributed motor fuel on a wholesale basis to approximately 1,750 sites across 34 states and owned or leased approximately 1,150 sites. CrossAmerica GP LLC serves as the general partner of the company, guiding its strategic direction and operational execution. The company's extensive network and dual-segment approach enable it to maintain a strong presence in the competitive energy market.

What Products and Services Does CAPL Offer?

• Wholesale distribution of motor fuels to lessee dealers.
• Wholesale distribution of motor fuels to independent dealers.
• Wholesale distribution of motor fuels to commission agents.
• Wholesale distribution of motor fuels to company-operated retail sites.
• Sale of convenience merchandise items at retail sites.
• Retail sale of motor fuels at company-operated retail sites.
• Retail sale of motor fuels at retail sites operated by commission agents.
• Ownership and leasing of real estate used in the retail distribution of motor fuels.

How Does CAPL Make Money?

• Generates revenue through the wholesale distribution of motor fuels.
• Generates revenue through the retail sale of motor fuels and convenience merchandise.
• Generates revenue through leasing real estate to retail operators.
• Operates through a network of company-operated and independently operated sites.

What Industry Does CAPL Operate In?

CrossAmerica Partners LP operates within the oil and gas refining and marketing industry, a sector characterized by fluctuating fuel prices and evolving consumer demands. The industry is influenced by global oil prices, regulatory changes, and technological advancements. Competitors include major oil companies and independent distributors. CAPL's focus on wholesale distribution and retail operations positions it to capitalize on the demand for motor fuels and convenience store products. The industry is also seeing a shift towards alternative fuels and electric vehicle infrastructure, which could pose both challenges and opportunities for CAPL. The company's ability to adapt to these changes will be crucial for maintaining its competitive edge.

Who Are CAPL's Key Customers?

• Lessee dealers who operate retail fuel sites.
• Independent dealers who purchase motor fuels wholesale.
• Commission agents who manage retail sites on behalf of CrossAmerica Partners LP.
• Consumers who purchase motor fuels and convenience items at retail sites.

Company Profile

CrossAmerica Partners LP operates in the Oil & Gas Refining & Marketing industry within the Energy sector. It is headquartered in Allentown, US. The company is led by CEO Maura E. Topper. CAPL has traded publicly since 2012.

CrossAmerica Partners LP Financial Trajectory

CrossAmerica Partners LP (CAPL) reported $1.18B in revenue for Q2 FY2026, reflecting 40.1% growth compared to the prior quarter. The company recorded net income of $20.8M, with diluted EPS of $0.52. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Energy. Across the four most recent quarters, CAPL averaged $0.35 in diluted EPS.

How CrossAmerica Partners LP Is Valued

CrossAmerica Partners LP carries a market capitalization of $874M, placing it in the small-cap category. Relative to its peer group, CAPL's quantitative score of 69/100 is roughly in line with the peer average of 68/100.

Return on equity for CrossAmerica Partners LP stands at -85.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.7%, showing how much profit it generates from its asset base. CAPL trades at a trailing price-to-earnings ratio of 16.13, roughly in line with the Energy sector average of ~15.80x. Its free cash flow yield is 8.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.75 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.7%, the inverse of the P/E and a quick read on earnings relative to price.

CrossAmerica Partners LP's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.69 places it in the safe zone, indicating low near-term bankruptcy risk.

CrossAmerica Partners LP has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 253.1% above estimates on average.

Over the past six months, CrossAmerica Partners LP insiders filed 20 SEC Form 4 transactions — 4 sales and 16 purchases. On net that is roughly 37K shares acquired (about $0) — insiders putting money in tends to read as conviction.

CAPL Financials

CAPL Latest News

CAPL Analyst Consensus

CAPL MoonshotScore

Common Questions About CAPL (Energy)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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