ARCOS DORADOS HOLDINGS INC-A (ARCO) Fundamental Analysis & Valuation

NYSE:ARCO • VGG0457F1071

Current stock price

7.68 USD
+0.01 (+0.13%)
At close:
7.68 USD
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This ARCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ARCO Profitability Analysis

1.1 Basic Checks

  • ARCO had positive earnings in the past year.
  • In the past year ARCO had a positive cash flow from operations.
  • ARCO had positive earnings in 4 of the past 5 years.
  • ARCO had a positive operating cash flow in 4 of the past 5 years.
ARCO Yearly Net Income VS EBIT VS OCF VS FCFARCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

  • With a decent Return On Assets value of 6.88%, ARCO is doing good in the industry, outperforming 76.19% of the companies in the same industry.
  • ARCO has a better Return On Equity (32.94%) than 86.51% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.78%, ARCO is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
  • ARCO had an Average Return On Invested Capital over the past 3 years of 8.93%. This is in line with the industry average of 10.60%.
Industry RankSector Rank
ROA 6.88%
ROE 32.94%
ROIC 7.78%
ROA(3y)5.49%
ROA(5y)2.38%
ROE(3y)35.94%
ROE(5y)10.55%
ROIC(3y)8.93%
ROIC(5y)N/A
ARCO Yearly ROA, ROE, ROICARCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

1.3 Margins

  • ARCO's Profit Margin of 5.39% is in line compared to the rest of the industry. ARCO outperforms 59.52% of its industry peers.
  • ARCO's Profit Margin has improved in the last couple of years.
  • ARCO's Operating Margin of 7.85% is in line compared to the rest of the industry. ARCO outperforms 46.83% of its industry peers.
  • ARCO's Operating Margin has improved in the last couple of years.
  • ARCO's Gross Margin of 12.39% is on the low side compared to the rest of the industry. ARCO is outperformed by 91.27% of its industry peers.
  • In the last couple of years the Gross Margin of ARCO has grown nicely.
Industry RankSector Rank
OM 7.85%
PM (TTM) 5.39%
GM 12.39%
OM growth 3Y13.39%
OM growth 5Y5.96%
PM growth 3Y24.84%
PM growth 5Y4.27%
GM growth 3Y1.69%
GM growth 5Y14.64%
ARCO Yearly Profit, Operating, Gross MarginsARCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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2

2. ARCO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARCO is still creating some value.
  • There is no outstanding debt for ARCO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ARCO Yearly Shares OutstandingARCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
ARCO Yearly Total Debt VS Total AssetsARCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • ARCO has an Altman-Z score of 2.24. This is not the best score and indicates that ARCO is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.24, ARCO is doing good in the industry, outperforming 60.32% of the companies in the same industry.
  • The Debt to FCF ratio of ARCO is 383.76, which is on the high side as it means it would take ARCO, 383.76 years of fcf income to pay off all of its debts.
  • ARCO's Debt to FCF ratio of 383.76 is on the low side compared to the rest of the industry. ARCO is outperformed by 62.70% of its industry peers.
  • ARCO has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ARCO (1.32) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 383.76
Altman-Z 2.24
ROIC/WACC1.04
WACC7.49%
ARCO Yearly LT Debt VS Equity VS FCFARCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that ARCO may have some problems paying its short term obligations.
  • The Current ratio of ARCO (0.89) is comparable to the rest of the industry.
  • A Quick Ratio of 0.81 indicates that ARCO may have some problems paying its short term obligations.
  • ARCO has a Quick ratio (0.81) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.81
ARCO Yearly Current Assets VS Current LiabilitesARCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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3

3. ARCO Growth Analysis

3.1 Past

  • ARCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -65.28%.
  • Measured over the past years, ARCO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.36% on average per year.
EPS 1Y (TTM)-65.28%
EPS 3Y-28.36%
EPS 5YN/A
EPS Q2Q%-114.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.88%

3.2 Future

  • ARCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.88% yearly.
  • ARCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y178.12%
EPS Next 2Y83.74%
EPS Next 3Y55.41%
EPS Next 5Y45.88%
Revenue Next Year9.77%
Revenue Next 2Y8.17%
Revenue Next 3Y6.92%
Revenue Next 5Y6.79%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
ARCO Yearly Revenue VS EstimatesARCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
ARCO Yearly EPS VS EstimatesARCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 -0.5 1

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6

4. ARCO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.72, which means the current valuation is very expensive for ARCO.
  • The rest of the industry has a similar Price/Earnings ratio as ARCO.
  • The average S&P500 Price/Earnings ratio is at 25.23. ARCO is valued slightly more expensive when compared to this.
  • The Price/Forward Earnings ratio is 11.05, which indicates a very decent valuation of ARCO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCO indicates a rather cheap valuation: ARCO is cheaper than 84.13% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, ARCO is valued rather cheaply.
Industry RankSector Rank
PE 30.72
Fwd PE 11.05
ARCO Price Earnings VS Forward Price EarningsARCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARCO is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
  • 62.70% of the companies in the same industry are cheaper than ARCO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 626.35
EV/EBITDA 4.17
ARCO Per share dataARCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • ARCO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of ARCO may justify a higher PE ratio.
  • A more expensive valuation may be justified as ARCO's earnings are expected to grow with 55.41% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y83.74%
EPS Next 3Y55.41%

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8

5. ARCO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.65%, ARCO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.12, ARCO pays a better dividend. On top of this ARCO pays more dividend than 87.30% of the companies listed in the same industry.
  • ARCO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.65%

5.2 History

  • On average, the dividend of ARCO grows each year by 17.60%, which is quite nice.
  • ARCO has paid a dividend for at least 10 years, which is a reliable track record.
  • ARCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.6%
Div Incr Years2
Div Non Decr Years3
ARCO Yearly Dividends per shareARCO Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

  • 20.61% of the earnings are spent on dividend by ARCO. This is a low number and sustainable payout ratio.
  • ARCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.61%
EPS Next 2Y83.74%
EPS Next 3Y55.41%
ARCO Yearly Income VS Free CF VS DividendARCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M
ARCO Dividend Payout.ARCO Dividend Payout, showing the Payout Ratio.ARCO Dividend Payout.PayoutRetained Earnings

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ARCO Fundamentals: All Metrics, Ratios and Statistics

ARCOS DORADOS HOLDINGS INC-A

NYSE:ARCO (3/20/2026, 8:04:00 PM)

After market: 7.68 0 (0%)

7.68

+0.01 (+0.13%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-19
Earnings (Next)05-12
Inst Owners50.3%
Inst Owner Change-10.52%
Ins Owners4.55%
Ins Owner ChangeN/A
Market Cap1.62B
Revenue(TTM)N/A
Net Income(TTM)245.35M
Analysts81.43
Price Target10.45 (36.07%)
Short Float %2.16%
Short Ratio2.94
Dividend
Industry RankSector Rank
Dividend Yield 3.65%
Yearly Dividend0.24
Dividend Growth(5Y)17.6%
DP20.61%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.18%
Min EPS beat(2)-9.5%
Max EPS beat(2)27.87%
EPS beat(4)2
Avg EPS beat(4)1.68%
Min EPS beat(4)-40.32%
Max EPS beat(4)28.68%
EPS beat(8)3
Avg EPS beat(8)-3.98%
EPS beat(12)6
Avg EPS beat(12)2.22%
EPS beat(16)9
Avg EPS beat(16)15.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)-1.53%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)0.15%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)7
Avg Revenue beat(12)-0.09%
Revenue beat(16)10
Avg Revenue beat(16)0.8%
PT rev (1m)4.12%
PT rev (3m)6.42%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)23.08%
EPS NY rev (3m)17.92%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 30.72
Fwd PE 11.05
P/S 0.36
P/FCF 626.35
P/OCF 5.97
P/B 2.17
P/tB 2.7
EV/EBITDA 4.17
EPS(TTM)0.25
EY3.26%
EPS(NY)0.7
Fwd EY9.05%
FCF(TTM)0.01
FCFY0.16%
OCF(TTM)1.29
OCFY16.75%
SpS21.63
BVpS3.54
TBVpS2.84
PEG (NY)0.17
PEG (5Y)N/A
Graham Number4.46
Profitability
Industry RankSector Rank
ROA 6.88%
ROE 32.94%
ROCE 12.62%
ROIC 7.78%
ROICexc 8.55%
ROICexgc 9.07%
OM 7.85%
PM (TTM) 5.39%
GM 12.39%
FCFM 0.06%
ROA(3y)5.49%
ROA(5y)2.38%
ROE(3y)35.94%
ROE(5y)10.55%
ROIC(3y)8.93%
ROIC(5y)N/A
ROICexc(3y)10.07%
ROICexc(5y)N/A
ROICexgc(3y)10.43%
ROICexgc(5y)N/A
ROCE(3y)14.7%
ROCE(5y)N/A
ROICexgc growth 3Y20.8%
ROICexgc growth 5Y13.02%
ROICexc growth 3Y20.55%
ROICexc growth 5Y12.8%
OM growth 3Y13.39%
OM growth 5Y5.96%
PM growth 3Y24.84%
PM growth 5Y4.27%
GM growth 3Y1.69%
GM growth 5Y14.64%
F-Score5
Asset Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 383.76
Debt/EBITDA 1.8
Cap/Depr 142.32%
Cap/Sales 5.89%
Interest Coverage 5.16
Cash Conversion 49.6%
Profit Quality 1.05%
Current Ratio 0.89
Quick Ratio 0.81
Altman-Z 2.24
F-Score5
WACC7.49%
ROIC/WACC1.04
Cap/Depr(3y)202.4%
Cap/Depr(5y)154.14%
Cap/Sales(3y)7.21%
Cap/Sales(5y)6.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-65.28%
EPS 3Y-28.36%
EPS 5YN/A
EPS Q2Q%-114.29%
EPS Next Y178.12%
EPS Next 2Y83.74%
EPS Next 3Y55.41%
EPS Next 5Y45.88%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.88%
Revenue Next Year9.77%
Revenue Next 2Y8.17%
Revenue Next 3Y6.92%
Revenue Next 5Y6.79%
EBIT growth 1Y17.91%
EBIT growth 3Y34.81%
EBIT growth 5Y15.08%
EBIT Next Year68.91%
EBIT Next 3Y25.02%
EBIT Next 5Y18.85%
FCF growth 1Y-87.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-20.84%
OCF growth 3Y1.13%
OCF growth 5Y3.61%

ARCOS DORADOS HOLDINGS INC-A / ARCO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ARCOS DORADOS HOLDINGS INC-A?

ChartMill assigns a fundamental rating of 4 / 10 to ARCO.


What is the valuation status of ARCOS DORADOS HOLDINGS INC-A (ARCO) stock?

ChartMill assigns a valuation rating of 6 / 10 to ARCOS DORADOS HOLDINGS INC-A (ARCO). This can be considered as Fairly Valued.


What is the profitability of ARCO stock?

ARCOS DORADOS HOLDINGS INC-A (ARCO) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for ARCO stock?

The Price/Earnings (PE) ratio for ARCOS DORADOS HOLDINGS INC-A (ARCO) is 30.72 and the Price/Book (PB) ratio is 2.17.


What is the financial health of ARCOS DORADOS HOLDINGS INC-A (ARCO) stock?

The financial health rating of ARCOS DORADOS HOLDINGS INC-A (ARCO) is 2 / 10.