Arcos Fundamentals

Stocks . USA . 
Stock . Arcos Dorados Holdings
ARCO Stock  USD 7.38  0.03  0.41%   
Arcos Dorados Holdings fundamentals help investors to digest information that contributes to Arcos Dorados' financial success or failures. It also enables traders to predict the movement of Arcos Stock. The fundamental analysis module provides a way to measure Arcos Dorados' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Arcos Dorados stock.
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Arcos Dorados Operating Income is very stable at the moment as compared to the past year. Arcos Dorados reported last year Operating Income of 264.42 Million.

Arcos Return On Asset Analysis

Arcos Dorados' Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
 2020 2021 2022 2023 (projected)
Interest Expense33.39 M49.55 M43.75 M47.77 M
Gross Profit115.44 M324.06 M492.61 M428.94 M
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
More About Return On Asset | All Equity Analysis

Current Arcos Dorados Return On Asset

    
  0.07 %  
Most of Arcos Dorados' fundamental indicators, such as Return On Asset, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Arcos Dorados Holdings is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Arcos Return On Asset Historical Pattern

Today, most investors in Arcos Dorados Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Arcos Dorados' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on asset growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Arcos Dorados return on asset as a starting point in their analysis.
   Arcos Dorados Return On Asset   
       Timeline  
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Competition

Arcos Total Assets

Total Assets

2.55 Billion

Arcos Dorados Total Assets are very stable at the moment as compared to the past year. Arcos Dorados reported last year Total Assets of 2.64 Billion
Based on the latest financial disclosure, Arcos Dorados Holdings has a Return On Asset of 0.0661%. This is 93.94% lower than that of the Hotels, Restaurants & Leisure sector and 99.0% lower than that of the Consumer Discretionary industry. The return on asset for all United States stocks is 147.21% lower than that of the firm.

Arcos Dorados Holdings Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Arcos Dorados's current stock value. Our valuation model uses many indicators to compare Arcos Dorados value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Arcos Dorados competition to find correlations between indicators driving Arcos Dorados's intrinsic value. More Info.
Arcos Dorados Holdings is rated below average in target price category among related companies. It is rated below average in operating margin category among related companies reporting about  0.01  of Operating Margin per Target Price. The ratio of Target Price to Operating Margin for Arcos Dorados Holdings is roughly  139.81 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Arcos Dorados by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arcos Dorados' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Arcos Dorados' earnings, one of the primary drivers of an investment's value.

Arcos Total Debt Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Arcos Dorados' direct or indirect competition against its Total Debt to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Arcos Dorados could also be used in its relative valuation, which is a method of valuing Arcos Dorados by comparing valuation metrics of similar companies.
Arcos Dorados is currently under evaluation in total debt category among related companies.

Arcos Dorados Current Valuation Drivers

We derive many important indicators used in calculating different scores of Arcos Dorados from analyzing Arcos Dorados' financial statements. These drivers represent accounts that assess Arcos Dorados' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Arcos Dorados' important valuation drivers and their relationship over time.
201820192020202120222023 (projected)
Average Assets1.57 B2.41 B2.2 B2.27 B2.49 B2.45 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA243.65 M294.03 M28.33 M247.36 M389.35 M347.93 M
Earnings Before Interest Taxes and Depreciation Amortization USD243.65 M294.03 M28.33 M247.36 M389.35 M347.93 M
Earnings before Tax84.98 M118.73 M(131.92 M)77.42 M225.82 M243.65 M
Average Equity414.93 M384.81 M195.05 M185.96 M254.43 M304.37 M
Enterprise Value2.1 B3 B2.46 B2.61 B3.05 B3.01 B
Free Cash Flow(14.42 M)(38.41 M)(69.55 M)145.03 M131.04 M141.38 M
Invested Capital1.49 B3.38 B3.19 B2.98 B3.15 B2.93 B
Invested Capital Average1.51 B3.22 B3.06 B3.11 B3.09 B2.9 B
Market Capitalization1.67 B1.66 B1.04 B1.24 B1.78 B1.61 B
Tangible Asset Value1.54 B2.51 B2.26 B2.32 B2.58 B2.5 B
Working Capital(28.75 M)(190.08 M)(87.94 M)(77.75 M)(75.05 M)(80.97 M)

Arcos Dorados Institutional Holders

Institutional Holdings refers to the ownership stake in Arcos Dorados that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Arcos Dorados' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Arcos Dorados' value.
Last TransactionTypeSharesValue
Nuveen Asset Management Llc2022-12-31Common Shares15.7 M131.3 M
Invesco Ltd2022-12-31Common Shares14.8 M123.4 M
Morgan Stanley2022-12-31Common Shares4.7 M39.5 M
Moerus Capital Management Llc2022-12-31Common Shares4.1 M34.7 M
Millennium Management Llc2022-12-31Common Shares3.4 M28.7 M
Macquarie Group Ltd2022-12-31Common Shares2.5 M21 M
Private Management Group Inc2022-12-31Common Shares2.2 M18.4 M
Marshall Wace Llp2022-12-31Common Shares1.9 M15.9 M
Bw Gestao De Investimentos Ltda2022-12-31Common Shares1.7 M14 M
Timessquare Capital Management Llc2022-12-31Common Shares1.6 M13.5 M
Jpmorgan Chase Co2022-12-31Common Shares1.4 M11.9 M

Arcos Fundamentals

Return On Equity0.52 %
Return On Asset0.07 %
Profit Margin0.0388 %
Operating Margin0.07 %
Current Valuation2.83 B
Shares Outstanding130.59 M
Shares Owned by Insiders3.70 %
Shares Owned by Institutions43.70 %
Number of Shares Shorted750.88 K
Price to Earning11.52 X
Price to Book6.58 X
Price to Sales0.47 X
Revenue2.66 B
Gross Profit492.61 M
EBITDA247.36 M
Net Income45.49 M
Cash and Equivalents289.42 M
Cash per Share1.37 X
Total Debt739.22 M
Debt to Equity7.40 %
Current Ratio0.86 X
Book Value Per Share1.54 X
Cash Flow from Operations258.04 M
Short Ratio0.92 X
Earnings Per Share0.61 X
Price to Earnings To Growth2.15 X
Target Price10.22
Beta0.99
Market Capitalization1.55 B
Total Asset2.36 B
Retained Earnings438.17 M
Working Capital(198.68 M)
Current Asset379 M
Current Liabilities577.67 M
Z Score2.2
Annual Yield0.0205 %
Net Asset2.36 B
Last Dividend Paid0.15

About Arcos Dorados Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Arcos Dorados Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Arcos Dorados using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Arcos Dorados Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2023
Cost of Revenue3.1 B2.8 B
Revenues3.6 B3.2 B

Arcos Dorados Investors Sentiment

The influence of Arcos Dorados' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Arcos. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Arcos Dorados' public news can be used to forecast risks associated with investment in Arcos. The trend in average sentiment can be used to explain how an investor holding Arcos can time the market purely based on public headlines and social activities around Arcos Dorados Holdings. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Arcos Dorados' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arcos Dorados' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Arcos Dorados' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Arcos Dorados.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Arcos Dorados in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Arcos Dorados' short interest history, or implied volatility extrapolated from Arcos Dorados options trading.

Pair Trading with Arcos Dorados

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arcos Dorados position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arcos Dorados will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Arcos Dorados could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arcos Dorados when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arcos Dorados - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arcos Dorados Holdings to buy it.
The correlation of Arcos Dorados is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arcos Dorados moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arcos Dorados Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arcos Dorados can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Check out Arcos Dorados Piotroski F Score and Arcos Dorados Altman Z Score analysis. To learn how to invest in Arcos Stock please use our How to Invest in Arcos Dorados guide. Note that the Arcos Dorados Holdings information on this page should be used as a complementary analysis to other Arcos Dorados' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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Is Arcos Dorados' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arcos Dorados. If investors know Arcos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arcos Dorados listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.195
Dividend Share
0.15
Earnings Share
0.61
Revenue Per Share
17.188
Quarterly Revenue Growth
0.305
The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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Please note, there is a significant difference between Arcos Dorados' value and its price as these two are different measures arrived at by different means. Investors typically determine Arcos Dorados value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.


 
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