(ARCO) Arcos Dorados Holdings - Ratings and Ratios
Burgers,Fries,Drinks,Breakfast,Desserts
ARCO EPS (Earnings per Share)
ARCO Revenue
Description: ARCO Arcos Dorados Holdings
Arcos Dorados Holdings Inc (NYSE:ARCO) is a Uruguayan company operating in the Restaurants sub-industry, with a market capitalization of $1.44 billion. The companys stock performance is characterized by a relatively low beta of 0.595, indicating lower volatility compared to the overall market.
From a fundamental analysis perspective, ARCOs price-to-earnings ratio stands at 10.70, with a forward P/E of 14.51, suggesting potential for future earnings growth. The companys return on equity (RoE) is 26.77%, indicating a strong ability to generate profits from shareholder equity. Key drivers of ARCOs financial performance likely include same-store sales growth, restaurant expansion, and brand recognition in the Latin American market.
To further evaluate ARCOs investment potential, key performance indicators (KPIs) such as revenue growth, operating margin, and system-wide sales could be monitored. Economic drivers like GDP growth in Latin America, consumer spending habits, and competitive landscape in the fast-food industry may also impact ARCOs financials. Additionally, analyzing the companys debt-to-equity ratio, interest coverage, and cash flow generation could provide insights into its financial health and ability to invest in growth initiatives.
Overall, a comprehensive analysis of ARCOs financials, industry trends, and competitive positioning would be necessary to determine its investment potential. By examining key metrics and drivers, investors can make informed decisions about the companys prospects for future growth and returns.
ARCO Stock Overview
| Market Cap in USD | 1,454m |
| Sub-Industry | Restaurants |
| IPO / Inception | 2011-04-14 |
ARCO Stock Ratings
| Growth Rating | -14.2% |
| Fundamental | 54.4% |
| Dividend Rating | 76.0% |
| Return 12m vs S&P 500 | -29.9% |
| Analyst Rating | 4.13 of 5 |
ARCO Dividends
| Dividend Yield 12m | 5.00% |
| Yield on Cost 5y | 9.50% |
| Annual Growth 5y | 16.89% |
| Payout Consistency | 60.0% |
| Payout Ratio | 36.9% |
ARCO Growth Ratios
| Growth Correlation 3m | -72.9% |
| Growth Correlation 12m | -71.5% |
| Growth Correlation 5y | 73.7% |
| CAGR 5y | -1.00% |
| CAGR/Max DD 3y | -0.02 |
| CAGR/Mean DD 3y | -0.06 |
| Sharpe Ratio 12m | -0.11 |
| Alpha | 0.00 |
| Beta | 0.933 |
| Volatility | 33.83% |
| Current Volume | 2251.7k |
| Average Volume 20d | 1411.6k |
| Stop Loss | 6.5 (-4.3%) |
| Signal | -0.54 |
Piotroski VR‑10 (Strict, 0-10) 1.5
| Net Income (130.1m TTM) > 0 and > 6% of Revenue (6% = 269.8m TTM) |
| FCFTA -0.02 (>2.0%) and ΔFCFTA -2.56pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -3.44% (prev -6.75%; Δ 3.31pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 258.5m > Net Income 130.1m (YES >=105%, WARN >=100%) |
| Net Debt (1.88b) to EBITDA (426.5m) ratio: 4.41 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.80 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (210.7m) change vs 12m ago 0.00% (target <= -2.0% for YES) |
| Gross Margin 12.53% (prev 14.96%; Δ -2.42pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 143.5% (prev 155.1%; Δ -11.66pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 4.70 (EBITDA TTM 426.5m / Interest Expense TTM 51.7m) >= 6 (WARN >= 3) |
Altman Z'' 1.07
| (A) -0.05 = (Total Current Assets 623.7m - Total Current Liabilities 778.6m) / Total Assets 3.37b |
| (B) 0.19 = Retained Earnings (Balance) 650.3m / Total Assets 3.37b |
| (C) 0.08 = EBIT TTM 243.3m / Avg Total Assets 3.13b |
| (D) 0.21 = Book Value of Equity 590.9m / Total Liabilities 2.79b |
| Total Rating: 1.07 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 54.43
| 1. Piotroski 1.50pt = -3.50 |
| 2. FCF Yield -2.64% = -1.32 |
| 3. FCF Margin -1.35% = -0.51 |
| 4. Debt/Equity 1.87 = 0.97 |
| 5. Debt/Ebitda 2.54 = -1.03 |
| 6. ROIC - WACC (= 3.75)% = 4.68 |
| 7. RoE 24.60% = 2.05 |
| 8. Rev. Trend 73.88% = 5.54 |
| 9. EPS Trend -49.17% = -2.46 |
What is the price of ARCO shares?
Over the past week, the price has changed by -1.59%, over one month by -7.99%, over three months by -10.76% and over the past year by -16.76%.
Is Arcos Dorados Holdings a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ARCO is around 6.00 USD . This means that ARCO is currently overvalued and has a potential downside of -11.63%.
Is ARCO a buy, sell or hold?
- Strong Buy: 2
- Buy: 5
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the ARCO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 10.4 | 53.2% |
| Analysts Target Price | 10.4 | 53.2% |
| ValueRay Target Price | 6.5 | -3.7% |
Last update: 2025-09-11 04:31
ARCO Fundamental Data Overview
CCE Cash And Equivalents = 233.9m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 11.129
P/E Forward = 14.5138
P/S = 0.3232
P/B = 2.4761
P/EG = 2.15
Beta = 0.639
Revenue TTM = 4.50b USD
EBIT TTM = 243.3m USD
EBITDA TTM = 426.5m USD
Long Term Debt = 945.4m USD (from longTermDebt, last quarter)
Short Term Debt = 137.2m USD (from shortTermDebt, last quarter)
Debt = 1.08b USD (Calculated: Short Term 137.2m + Long Term 945.4m)
Net Debt = 1.88b USD (from netDebt column, last quarter)
Enterprise Value = 2.30b USD (1.45b + Debt 1.08b - CCE 233.9m)
Interest Coverage Ratio = 4.70 (Ebit TTM 243.3m / Interest Expense TTM 51.7m)
FCF Yield = -2.64% (FCF TTM -60.8m / Enterprise Value 2.30b)
FCF Margin = -1.35% (FCF TTM -60.8m / Revenue TTM 4.50b)
Net Margin = 2.89% (Net Income TTM 130.1m / Revenue TTM 4.50b)
Gross Margin = 12.53% ((Revenue TTM 4.50b - Cost of Revenue TTM 3.93b) / Revenue TTM)
Tobins Q-Ratio = 3.90 (Enterprise Value 2.30b / Book Value Of Equity 590.9m)
Interest Expense / Debt = 1.71% (Interest Expense 18.5m / Debt 1.08b)
Taxrate = 42.39% (109.9m / 259.3m)
NOPAT = 140.1m (EBIT 243.3m * (1 - 42.39%))
Current Ratio = 0.80 (Total Current Assets 623.7m / Total Current Liabilities 778.6m)
Debt / Equity = 1.87 (Debt 1.08b / last Quarter total Stockholder Equity 580.2m)
Debt / EBITDA = 2.54 (Net Debt 1.88b / EBITDA 426.5m)
Debt / FCF = -17.81 (Debt 1.08b / FCF TTM -60.8m)
Total Stockholder Equity = 528.9m (last 4 quarters mean)
RoA = 3.86% (Net Income 130.1m, Total Assets 3.37b )
RoE = 24.60% (Net Income TTM 130.1m / Total Stockholder Equity 528.9m)
RoCE = 16.50% (Ebit 243.3m / (Equity 528.9m + L.T.Debt 945.4m))
RoIC = 9.58% (NOPAT 140.1m / Invested Capital 1.46b)
WACC = 5.84% (E(1.45b)/V(2.54b) * Re(9.45%)) + (D(1.08b)/V(2.54b) * Rd(1.71%) * (1-Tc(0.42)))
Shares Correlation 3-Years: 92.99 | Cagr: 0.00%
Discount Rate = 9.45% (= CAPM, Blume Beta Adj.)
Fair Price DCF = unknown (Cash Flow -60.8m)
EPS Correlation: -49.17 | EPS CAGR: -18.74% | SUE: 1.23 | # QB: 1
Revenue Correlation: 73.88 | Revenue CAGR: 8.12% | SUE: N/A | # QB: None
Additional Sources for ARCO Stock
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Fund Manager Positions: Dataroma | Stockcircle