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Relative to Consumer Staples Sector Median (N=180)
Metric
CAPL
Benchmark
P/E Ratio
18.9x
-43%
EV/EBITDA
15.1x
+118%
Price / Book
—
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
-6.8%
$19.87Spot: $21.31
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
—
Sector: 7.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, CrossAmerica Partners LP (CAPL) receives a "Hold" rating with a composite score of 50.5/100, ranked #1088 out of 4446 stocks. Key factor scores: Quality 50/100, Value 64/100, Momentum 38/100. This is quantitative analysis only — not investment advice.
CrossAmerica Partners LP (CAPL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CrossAmerica Partners LP Do?
CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. As of December 31, 2021, the company distributed motor fuel on a wholesale basis to approximately 1,750 sites located in 34 states; and owned or leased approximately 1,150 sites. CrossAmerica GP LLC operates as the general partner of the company. The company was formerly known as Lehigh Gas Partners LP and changed its name to CrossAmerica Partners LP in October 2014. The company was founded in 1992 and is based in Allentown, Pennsylvania. CrossAmerica Partners LP (CAPL) is classified as a small-cap stock in the Consumer Staples sector, specifically within the Wholesale industry. The company is led by CEO Charles M. Nifong and employs approximately 2,220 people, headquartered in ALLENTOWN, Pennsylvania. With a market capitalization of $796M, CAPL is one of the notable companies in the Consumer Staples sector.
CrossAmerica Partners LP (CAPL) Stock Rating — Hold (April 2026)
As of April 2026, CrossAmerica Partners LP receives a Hold rating with a composite score of 50.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CAPL ranks #1,088 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, CrossAmerica Partners LP ranks #36 of 180 stocks, placing it in the top quartile of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CAPL Stock Price and 52-Week Range
CrossAmerica Partners LP (CAPL) currently trades at $21.31. The stock gained $0.05 (0.2%) in the most recent trading session. The 52-week high for CAPL is $25.73, which means the stock is currently trading -17.2% from its annual peak. The 52-week low is $19.61, putting the stock 8.7% above its annual trough. Recent trading volume was 16K shares, suggesting relatively thin trading activity.
Is CAPL Overvalued or Undervalued? — Valuation Analysis
CrossAmerica Partners LP (CAPL) carries a value factor score of 64/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.85x, compared to the Consumer Staples sector average of 33.11x — a discount of 43%. The price-to-sales ratio is 0.21x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, CAPL trades at 15.12x EV/EBITDA, versus 6.93x for the sector.
Overall, CAPL's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
CrossAmerica Partners LP Profitability — ROE, Margins, and Quality Score
CrossAmerica Partners LP (CAPL) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. Return on assets (ROA) comes in at 4.4% versus the sector average of 3.1%.
On a margin basis, CrossAmerica Partners LP reports gross margins of 10.5%, compared to 26.2% for the sector. The operating margin is 2.5% (sector: 2.9%). Net profit margin stands at 1.0%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at -14.2% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CAPL Debt, Balance Sheet, and Financial Health
Balance sheet data for CAPL is evaluated through our stability factor. The current ratio is 0.72x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $693M. Cash and equivalents stand at $6M.
CAPL has a beta of 0.33, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for CrossAmerica Partners LP is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
CrossAmerica Partners LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, CrossAmerica Partners LP reported revenue of $3.88B and earnings per share (EPS) of $1.03. Net income for the quarter was $42M. Gross margin was 10.5%. Operating income came in at $99M.
In FY 2025, CrossAmerica Partners LP reported revenue of $3.66B and earnings per share (EPS) of $1.03. Net income for the quarter was $42M. Gross margin was 11.0%. Revenue grew -10.6% year-over-year compared to FY 2024. Operating income came in at $98M.
In Q3 2025, CrossAmerica Partners LP reported revenue of $972M and earnings per share (EPS) of $0.34. Net income for the quarter was $14M. Gross margin was 10.8%. Revenue grew -9.9% year-over-year compared to Q3 2024. Operating income came in at $28M.
In Q2 2025, CrossAmerica Partners LP reported revenue of $962M and earnings per share (EPS) of $0.64. Net income for the quarter was $25M. Gross margin was 10.5%. Revenue grew -15.1% year-over-year compared to Q2 2024. Operating income came in at $41M.
Over the past 8 quarters, CrossAmerica Partners LP has demonstrated a growth trajectory, with revenue expanding from $1.13B to $3.88B. Investors analyzing CAPL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CAPL Dividend Yield and Income Analysis
CrossAmerica Partners LP (CAPL) does not currently pay a dividend. This is common among smaller companies in the Wholesale industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Staples dividend stocks may want to explore other Consumer Staples stocks or use the stock screener to filter by dividend yield.
CAPL Momentum and Technical Analysis Profile
CrossAmerica Partners LP (CAPL) has a momentum factor score of 38/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 43/100 reflects moderate short selling activity.
CAPL vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing CAPL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CAPL vs S&P 500 (SPY) comparison to assess how CrossAmerica Partners LP stacks up against the broader market across all factor dimensions.
CAPL Next Earnings Date
No upcoming earnings date has been announced for CrossAmerica Partners LP (CAPL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CAPL? — Investment Thesis Summary
CrossAmerica Partners LP presents a balanced picture with arguments on both sides. The value score of 64/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 38/100, a headwind for near-term performance. Low volatility (stability score 84/100) reduces downside risk.
In summary, CrossAmerica Partners LP (CAPL) earns a Hold rating with a composite score of 50.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CAPL stock.
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Institutional Research Dossier
CrossAmerica Partners LP (CAPL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
CrossAmerica Partners LP (CAPL) receives a Hold rating, driven by a mixed financial performance and a lack of clear competitive advantages. While the company exhibits attractive valuation multiples compared to the consumer staples sector, its declining revenue growth and relatively weak profitability metrics raise concerns about its long-term sustainability and ability to generate consistent returns for investors. The high level of debt further constrains its financial flexibility and limits its capacity for strategic investments.
The company's stability score is high, but this is offset by low scores in investment and momentum. The key takeaway is that while CAPL may offer some value based on current multiples, the underlying business faces significant headwinds, and investors should remain cautious until there are signs of improved operational performance and a more robust financial position. The partnership structure also introduces complexities that require careful consideration.
Business Strategy & Overview
CrossAmerica Partners LP operates as a wholesale distributor of motor fuels and a retailer of convenience store merchandise. The company's revenue is primarily derived from the sale of motor fuels to a network of lessee dealers, independent dealers, commission agents, and company-operated retail sites. Additionally, CAPL generates revenue from the retail sale of convenience merchandise and motor fuels at its company-operated retail locations and those managed by commission agents. The company's business model is heavily reliant on the demand for gasoline and the profitability of convenience store operations.
CAPL's strategy involves maintaining a diversified network of fuel distribution and retail sites across 34 states. This geographic diversification aims to mitigate the impact of regional economic downturns and fluctuations in fuel prices. The company also focuses on optimizing its retail operations by enhancing its convenience store offerings and improving customer service to drive sales and profitability. However, the company's reliance on motor fuel sales exposes it to risks associated with changing consumer preferences, the increasing adoption of electric vehicles, and regulatory changes related to fuel efficiency and emissions standards.
The company's growth strategy appears to be primarily focused on maintaining its existing network and optimizing its operations, rather than pursuing aggressive expansion or acquisitions. This conservative approach may limit its growth potential in a rapidly evolving market. Furthermore, the company's partnership structure introduces complexities related to governance and capital allocation, which may not always align with the interests of all investors. The relationship with the general partner, CrossAmerica GP LLC, is a critical aspect of the company's operations and financial performance.
CAPL operates in a highly competitive industry, facing competition from major oil companies, independent fuel distributors, and convenience store chains. The company's ability to differentiate itself from competitors and maintain its market share is crucial to its long-term success. The company's focus on wholesale distribution exposes it to fluctuations in fuel prices and demand, while its retail operations are subject to competition from other convenience stores and changing consumer preferences. The company's success depends on its ability to manage these challenges effectively and adapt to changing market conditions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-14.2%
Sector: 3.1%
-553% VS SCTR
Economic Moat Analysis
CrossAmerica Partners LP's economic moat is likely narrow, if it exists at all. The company operates in a highly competitive industry with limited barriers to entry. While its established network of fuel distribution and retail sites provides some competitive advantage, it is not substantial enough to create a wide moat. The company's ability to generate sustainable profits and returns is heavily reliant on its operational efficiency and its ability to manage its costs effectively.
The company's network of fuel distribution sites could be considered a source of limited network effects, as the more sites it has, the more attractive it becomes to fuel suppliers and customers. However, these network effects are not strong enough to create a significant competitive advantage, as customers can easily switch to alternative fuel providers or convenience stores. The company's brand recognition may provide some intangible asset value, but it is not a dominant brand in the industry.
Switching costs for customers are relatively low, as they can easily switch to alternative fuel providers or convenience stores. This lack of customer loyalty limits the company's ability to raise prices or maintain its market share. The company's cost advantages are also limited, as it faces competition from larger, more efficient operators. While the company may benefit from economies of scale in its fuel distribution operations, these advantages are not substantial enough to create a significant competitive advantage.
The company's efficient scale is also limited, as the market for fuel distribution and convenience stores is highly fragmented and competitive. There are numerous players in the industry, and no single company dominates the market. This lack of concentration limits the company's ability to achieve significant economies of scale and generate sustainable profits. Overall, CrossAmerica Partners LP's economic moat is weak, and the company faces significant competitive pressures.
Financial Health & Profitability
CrossAmerica Partners LP's financial health presents a mixed picture. The company's revenue has declined significantly in the most recent year, with a -14.2% decrease compared to the sector's 4.3% growth. This decline raises concerns about the company's ability to maintain its market share and generate sustainable revenue growth. The company's gross margin of 10.5% is significantly lower than the sector average of 26.0%, indicating that it may be facing challenges in managing its costs or pricing its products effectively.
The company's operating margin of 2.5% is also lower than the sector average of 3.1%, suggesting that it may be facing challenges in controlling its operating expenses. The company's net margin of 1.0% is significantly lower than the sector average of 1.7%, indicating that it may be facing challenges in generating profits. The company's return on equity (ROE) is not available, but given its low net margin and declining revenue growth, it is likely to be below the sector average of 7.8%.
The company's balance sheet is highly leveraged, with a total debt of $693.49 million and a current ratio of 0.72, indicating that it may be facing liquidity challenges. The company's debt-to-equity ratio is not available, but given its high level of debt, it is likely to be significantly higher than the sector average of 70.50%. This high level of debt increases the company's financial risk and limits its ability to invest in growth opportunities.
The company's free cash flow (FCF) generation is positive, with $128.85 million in the most recent year. However, this FCF may be insufficient to cover its debt obligations and capital expenditures. The quarterly financial history reveals a fluctuating pattern of revenue and net income, with some quarters showing losses. This volatility in financial performance raises concerns about the company's ability to generate consistent returns for investors. The trend of declining revenue and margins is particularly concerning and warrants close monitoring.
Valuation Assessment
CrossAmerica Partners LP's valuation appears attractive based on certain multiples, but a deeper analysis reveals potential concerns. The company's P/E ratio of 21.4x is lower than the sector average of 34.2x, suggesting that it may be undervalued relative to its peers. Similarly, its EV/EBITDA ratio of 3.9x is significantly lower than the sector average of 7.3x, further indicating potential undervaluation. However, these multiples should be interpreted with caution, as they may reflect the company's declining revenue growth and relatively weak profitability metrics.
The company's free cash flow yield is not explicitly provided, but can be estimated by dividing the free cash flow ($128.85M) by the market cap ($841.26M), resulting in a yield of approximately 15.3%. This is a relatively high yield, suggesting that the company may be undervalued based on its cash flow generation. However, investors should consider the sustainability of this cash flow, given the company's declining revenue growth and high level of debt.
Compared to its historical valuation, it's difficult to assess without historical P/E and EV/EBITDA data. However, the recent decline in revenue and the fluctuating net income suggest that the company's valuation may be justified by its weaker financial performance. The high level of debt also warrants a discount to the company's valuation, as it increases its financial risk.
Overall, CrossAmerica Partners LP's valuation appears to be a mixed bag. While its P/E and EV/EBITDA ratios suggest potential undervaluation, its declining revenue growth, relatively weak profitability metrics, and high level of debt raise concerns about its long-term sustainability. Investors should carefully consider these factors before making an investment decision. The Hold rating reflects this uncertainty and suggests that investors should wait for more clarity on the company's future performance before taking a position.
Risk & Uncertainty
CrossAmerica Partners LP faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the declining demand for gasoline due to the increasing adoption of electric vehicles and changing consumer preferences. This trend could lead to a decrease in fuel sales and a decline in revenue for the company's wholesale and retail operations. The company's ability to adapt to this changing market and diversify its revenue streams is crucial to its long-term success.
Another risk is the intense competition in the fuel distribution and convenience store industries. The company faces competition from major oil companies, independent fuel distributors, and convenience store chains. This competition could lead to price wars and a decline in profit margins. The company's ability to differentiate itself from competitors and maintain its market share is crucial to its long-term success. The company's reliance on motor fuel sales exposes it to fluctuations in fuel prices and demand, while its retail operations are subject to competition from other convenience stores and changing consumer preferences.
The company's high level of debt also poses a significant risk. The company's debt obligations could strain its cash flow and limit its ability to invest in growth opportunities. A rise in interest rates could further increase the company's debt servicing costs and negatively impact its profitability. The company's ability to manage its debt effectively is crucial to its financial stability.
Regulatory changes related to fuel efficiency and emissions standards could also negatively impact the company's business. Stricter regulations could increase the cost of fuel and reduce demand, leading to a decline in revenue for the company's wholesale and retail operations. The company's ability to comply with these regulations and adapt to changing environmental standards is crucial to its long-term success. The partnership structure itself introduces risks related to governance and potential conflicts of interest between the general partner and the limited partners.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCrossAmerica Partners' low valuation multiples (P/E and EV/EBITDA) relative to the sector suggest it is significantly undervalued and poised for a correction.
BULL VIEWThe company's high stability score indicates a resilient business model capable of weathering economic downturns and maintaining consistent cash flow.
BULL VIEWThe company's high free cash flow yield provides a substantial margin of safety and potential for increased distributions to unitholders.
The Bear Case
BEAR VIEWCrossAmerica Partners' declining revenue growth and weak profitability metrics indicate a struggling business model with limited growth prospects.
BEAR VIEWThe company's high debt load and low current ratio raise concerns about its financial stability and ability to meet its debt obligations.
BEAR VIEWThe increasing adoption of electric vehicles poses a significant long-term threat to CrossAmerica Partners' core business of fuel distribution.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CAPL and 4,400+ other equities.
CrossAmerica Partners LP exhibits a 11% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.4%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
10.5%
Sector: 26.2%
Operating Margin
Core business profitability
2.5%
Sector: 2.9%
Net Margin
Bottom-line profitability
1.0%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
