Arcos Stock Performance

ARCO Stock  USD 7.38  0.03  0.41%   
The firm shows a Beta (market volatility) of 0.9695, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Arcos's beta means in this case. Arcos Dorados returns are very sensitive to returns on the market. As the market goes up or down, Arcos Dorados is expected to follow. Even though it is essential to pay attention to Arcos Dorados Holdings historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Arcos Dorados Holdings exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Arcos Dorados Holdings has an expected return of -0.13%. Please be advised to confirm Arcos Dorados Holdings value at risk, daily balance of power, and the relationship between the total risk alpha and expected short fall to decide if Arcos Dorados Holdings performance from the past will be repeated at some point in the near future.
  

Arcos Performance

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Over the last 90 days Arcos Dorados Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm insiders. ...more

Structure and Payout Changes

Forward Dividend Yield
0.0205
Payout Ratio
0.2353
Last Split Factor
993:979
Forward Dividend Rate
0.16
Dividend Date
2023-12-27
Begin Period Cash Flow166 M
Total Cashflows From Investing Activities-108.3 M

Arcos Dorados Relative Risk vs. Return Landscape

If you would invest  809.00  in Arcos Dorados Holdings on December 27, 2022 and sell it today you would lose (71.00)  from holding Arcos Dorados Holdings or give up 8.78% of portfolio value over 90 days. Arcos Dorados Holdings is currently does not generate positive expected returns and assumes 1.9874% risk (volatility on return distribution) over the 90 days horizon. In different words, 17% of stocks are less volatile than Arcos, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Arcos Dorados is expected to under-perform the market. In addition to that, the company is 2.09 times more volatile than its market benchmark. It trades about -0.06 of its total potential returns per unit of risk. The NYSE Composite is currently generating roughly -0.03 per unit of volatility.

Arcos Dorados Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Arcos Dorados' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Arcos Dorados Holdings, and traders can use it to determine the average amount a Arcos Dorados' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0634

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Estimated Market Risk

 1.99
  actual daily
 17 
83% of assets are more volatile
1717

Expected Return

 -0.13
  actual daily
 
Most of other assets have higher returns
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Risk-Adjusted Return

 -0.06
  actual daily
 
Most of other assets perform better
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Based on monthly moving average Arcos Dorados is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Arcos Dorados by adding it to a well-diversified portfolio.

Arcos Dorados Fundamentals Growth

Arcos Stock prices reflect investors' perceptions of the future prospects and financial health of Arcos Dorados, and Arcos Dorados fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Arcos Stock performance.

About Arcos Dorados Performance

To evaluate Arcos Dorados Holdings Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Arcos Dorados generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Arcos Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Arcos Dorados Holdings market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Arcos's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2023
Effect of Exchange Rate Changes on Cash-37.7 M-38.7 M
Return on Average Assets 0.06  0.06 
Return on Average Equity 0.55  0.60 
Return on Invested Capital 0.09  0.08 
Return on Sales 0.07  0.06 

Things to note about Arcos Dorados Holdings performance evaluation

Checking the ongoing alerts about Arcos Dorados for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Arcos Dorados Holdings help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Arcos Dorados generated a negative expected return over the last 90 days
The company currently holds 739.22 M in liabilities with Debt to Equity (D/E) ratio of 7.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Arcos Dorados Holdings has a current ratio of 0.84, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Arcos Dorados until it has trouble settling it off, either with new capital or with free cash flow. So, Arcos Dorados' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Arcos Dorados Holdings sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Arcos to invest in growth at high rates of return. When we think about Arcos Dorados' use of debt, we should always consider it together with cash and equity.
Arcos Dorados has a strong financial position based on the latest SEC filings
Latest headline from finance.yahoo.com: ARCO DesignBuild Launches New Sustainability Initiative to Deliver Sustainable Building Solutions for Clients
Evaluating Arcos Dorados' performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Arcos Dorados' stock performance include:
  • Analyzing Arcos Dorados' financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Arcos Dorados' stock is overvalued or undervalued compared to its peers.
  • Examining Arcos Dorados' industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Arcos Dorados' management team can have a significant impact on its success or failure. Reviewing the track record and experience of Arcos Dorados' management team can help you assess the company's leadership.
  • Pay attention to analyst opinions and ratings of Arcos Dorados' stock. These opinions can provide insight into Arcos Dorados' potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Arcos Dorados' stock performance is not an exact science, and many factors can impact Arcos Dorados' stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
Check out Trending Equities. 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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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When running Arcos Dorados Holdings 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 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
0.195
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.
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.