Arcos Piotroski F Score
| ARCO Stock | USD 9.74 0.49 4.79% |
Arcos | Piotroski F Score |
At this time, it appears that Arcos Dorados' Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1 | Current Return On Assets | Positive | Focus |
2 | Change in Return on Assets | Increased | Focus |
3 | Cash Flow Return on Assets | Positive | Focus |
4 | Current Quality of Earnings (accrual) | Improving | Focus |
5 | Asset Turnover Growth | Increase | Focus |
6 | Current Ratio Change | Decrease | Focus |
7 | Long Term Debt Over Assets Change | Lower Leverage | Focus |
8 | Change In Outstending Shares | Decrease | Focus |
9 | Change in Gross Margin | No Change | Focus |
Arcos Dorados Piotroski F Score Drivers
The critical factor to consider when applying the Piotroski F Score to Arcos Dorados is to make sure Arcos is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Arcos Dorados' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Arcos Dorados' financial numbers are properly reported.
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Weighted Average Shares | 202.3 M | 212.9 M |
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| Return on Average Assets | 0.0604 | 0.056 |
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| Net Cash Flow from Operations | 297.3 M | 345.4 M |
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| Current Liabilities | 740.8 M | 759.4 M |
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| Total Liabilities | 2.1 B | 2.3 B |
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| Gross Margin | 0.12 | 0.136 |
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| Total Debt | 1.4 B | 1.6 B |
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| Asset Turnover | 1.47 | 1.452 |
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| Current Assets | 578.5 M | 684.4 M |
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| Total Assets | 2.6 B | 2.6 B |
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Arcos Dorados Holdings F Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Arcos Dorados' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Arcos Dorados in a much-optimized way.
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About Arcos Dorados Piotroski F Score
F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.Book Value per Share |
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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.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (projected) | ||
| Average Assets | 1.57 B | 2.41 B | 2.2 B | 2.27 B | 2.49 B | 2.45 B | |
| Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 243.65 M | 294.03 M | 28.33 M | 247.36 M | 389.35 M | 347.93 M | |
| Earnings Before Interest Taxes and Depreciation Amortization USD | 243.65 M | 294.03 M | 28.33 M | 247.36 M | 389.35 M | 347.93 M | |
| Earnings before Tax | 84.98 M | 118.73 M | (131.92 M) | 77.42 M | 225.82 M | 243.65 M | |
| Average Equity | 414.93 M | 384.81 M | 195.05 M | 185.96 M | 254.43 M | 304.37 M | |
| Enterprise Value | 2.1 B | 3 B | 2.46 B | 2.61 B | 3.05 B | 3.01 B | |
| Free Cash Flow | (14.42 M) | (38.41 M) | (69.55 M) | 145.03 M | 131.04 M | 141.38 M | |
| Invested Capital | 1.49 B | 3.38 B | 3.19 B | 2.98 B | 3.15 B | 2.93 B | |
| Invested Capital Average | 1.51 B | 3.22 B | 3.06 B | 3.11 B | 3.09 B | 2.9 B | |
| Market Capitalization | 1.67 B | 1.66 B | 1.04 B | 1.24 B | 1.78 B | 1.61 B | |
| Tangible Asset Value | 1.54 B | 2.51 B | 2.26 B | 2.32 B | 2.58 B | 2.5 B | |
| Working Capital | (28.75 M) | (190.08 M) | (87.94 M) | (77.75 M) | (75.05 M) | (80.97 M) |
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.Arcos Dorados Holdings Inc. operates as a franchisee of McDonalds restaurants. The company was founded in 2007 and is based in Montevideo, Uruguay. Arcos Dorados operates under Restaurants classification in the United States and is traded on New York Stock Exchange.
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Our tools can tell you how much better you can do entering a position in Arcos Dorados without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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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.Moving together with Arcos Stock
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Moving against Arcos Stock
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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.Check out Arcos Dorados Altman Z Score, Arcos Dorados Correlation, Arcos Dorados Valuation, as well as analyze Arcos Dorados Alpha and Beta and Arcos Dorados Hype Analysis. 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 the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for Arcos Stock analysis
When running Arcos Dorados' price analysis, check to measure Arcos Dorados' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arcos Dorados is operating at the current time. Most of Arcos Dorados' value examination focuses on studying past and present price action to predict the probability of Arcos Dorados' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arcos Dorados' price. Additionally, you may evaluate how the addition of Arcos Dorados to your portfolios can decrease your overall portfolio volatility.
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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 0.89 | Dividend Share 0.19 | Earnings Share 0.79 | Revenue Per Share 18.858 | Quarterly Revenue Growth 0.172 |
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.
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 if Arcos Dorados is a good investment 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.