Arcos Z Score
| ARCO Stock | USD 9.74 0.49 4.79% |
Arcos | Z Score |
Arcos Z Score Analysis
Arcos Dorados' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
More About Z Score | All Equity Analysis
| 2020 | 2021 | 2022 | 2023 (projected) | Interest Expense | 33.39 M | 49.55 M | 43.75 M | 47.77 M | Gross Profit | 115.44 M | 324.06 M | 492.61 M | 428.94 M |
Z Score | = | Sum Of | | 5 Factors |
Current Arcos Dorados Z Score | 2.68 |
Most of Arcos Dorados' fundamental indicators, such as Z Score, 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 Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Arcos Dorados is extremely important. It helps to project a fair market value of Arcos Stock properly, considering its historical fundamentals such as Z Score. Since Arcos Dorados' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Arcos Dorados' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Arcos Dorados' interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
| Competition |
In accordance with the company's disclosures, Arcos Dorados Holdings has a Z Score of 2.68. This is 17.03% lower than that of the Hotels, Restaurants & Leisure sector and 41.87% lower than that of the Consumer Discretionary industry. The z score for all United States stocks is 69.27% higher than that of the company.
Arcos Z Score 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 Z Score 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 z score 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.
| 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) |
Arcos Fundamentals
| Return On Equity | 0.54 | |||
| Return On Asset | 0.0712 | |||
| Profit Margin | 0.0421 % | |||
| Operating Margin | 0.07 % | |||
| Current Valuation | 3.6 B | |||
| Shares Outstanding | 130.66 M | |||
| Shares Owned by Insiders | 3.25 % | |||
| Shares Owned by Institutions | 43.20 % | |||
| Number of Shares Shorted | 2.4 M | |||
| Price to Earning | 11.52 X | |||
| Price to Book | 6.58 X | |||
| Price to Sales | 0.47 X | |||
| Revenue | 3.62 B | |||
| Gross Profit | 492.61 M | |||
| EBITDA | 264.42 M | |||
| Net Income | 140.34 M | |||
| Cash and Equivalents | 289.42 M | |||
| Cash per Share | 1.37 X | |||
| Total Debt | 1.56 B | |||
| Debt to Equity | 7.40 % | |||
| Current Ratio | 0.86 X | |||
| Book Value Per Share | 1.92 X | |||
| Cash Flow from Operations | 345.44 M | |||
| Short Ratio | 2.31 X | |||
| Earnings Per Share | 0.79 X | |||
| Price to Earnings To Growth | 2.15 X | |||
| Target Price | 13.21 | |||
| Beta | 1.07 | |||
| Market Capitalization | 2.05 B | |||
| Total Asset | 2.64 B | |||
| Retained Earnings | 424.94 M | |||
| Working Capital | (75.05 M) | |||
| Current Asset | 379 M | |||
| Current Liabilities | 577.67 M | |||
| Z Score | 2.68 | |||
| Annual Yield | 0.0156 % | |||
| Net Asset | 2.64 B | |||
| Last Dividend Paid | 0.19 |
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.
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 market does not have solid backing from leading economists and market statisticians.
Investor biases related to Arcos Dorados' public news can be used to forecast risks associated with an 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 equities 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.Moving together with Arcos Stock
| + | 0.61 | SG | Sweetgreen | Fiscal Quarter End 30th of September 2023 | PairCorr | |
| + | 0.65 | CCL | Carnival | Earnings Call This Week | PairCorr |
Moving against Arcos Stock
| - | 0.53 | FUN | Cedar Fair LP | Fiscal Quarter End 30th of September 2023 | PairCorr |
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 Piotroski F Score and Arcos Dorados Valuation 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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.
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |
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.