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

NYSE:ARCO • VGG0457F1071

Current stock price

8.07 USD
-0.2 (-2.42%)
At close:
8.07 USD
0 (0%)
After Hours:

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.
  • Each year in the past 5 years ARCO has been profitable.
  • Each year in the past 5 years ARCO had a positive operating cash flow.
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 2025 0 100M -100M 200M 300M

1.2 Ratios

  • The Return On Assets of ARCO (10.27%) is better than 84.13% of its industry peers.
  • ARCO has a Return On Equity of 51.79%. This is amongst the best in the industry. ARCO outperforms 91.27% of its industry peers.
  • The Return On Invested Capital of ARCO (12.14%) is better than 75.40% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCO is below the industry average of 10.65%.
  • The last Return On Invested Capital (12.14%) for ARCO is above the 3 year average (8.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.27%
ROE 51.79%
ROIC 12.14%
ROA(3y)5.54%
ROA(5y)4.77%
ROE(3y)30.66%
ROE(5y)31.2%
ROIC(3y)8.24%
ROIC(5y)7.55%
ARCO Yearly ROA, ROE, ROICARCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 -60

1.3 Margins

  • With a Profit Margin value of 4.93%, ARCO perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
  • ARCO's Profit Margin has improved in the last couple of years.
  • ARCO has a Operating Margin (7.65%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of ARCO has grown nicely.
  • Looking at the Gross Margin, with a value of 11.96%, ARCO is doing worse than 91.27% of the companies in the same industry.
  • ARCO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 7.65%
PM (TTM) 4.93%
GM 11.96%
OM growth 3Y1.99%
OM growth 5YN/A
PM growth 3Y5.36%
PM growth 5YN/A
GM growth 3Y-20.83%
GM growth 5Y-6.17%
ARCO Yearly Profit, Operating, Gross MarginsARCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

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3

2. ARCO Health Analysis

2.1 Basic Checks

  • ARCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, ARCO has more shares outstanding
  • ARCO has more shares outstanding than it did 5 years ago.
  • ARCO has a worse debt/assets ratio than last year.
ARCO Yearly Shares OutstandingARCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 3.25 indicates that ARCO is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.25, ARCO belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
  • ARCO has a debt to FCF ratio of 75.87. This is a negative value and a sign of low solvency as ARCO would need 75.87 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 75.87, ARCO is doing worse than 61.90% of the companies in the same industry.
  • ARCO has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
  • ARCO has a Debt to Equity ratio of 1.46. This is comparable to the rest of the industry: ARCO outperforms 50.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF 75.87
Altman-Z 3.25
ROIC/WACC1.7
WACC7.14%
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 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • ARCO has a Current Ratio of 1.03. This is a normal value and indicates that ARCO is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of ARCO (1.03) is comparable to the rest of the industry.
  • ARCO has a Quick Ratio of 1.03. This is a bad value and indicates that ARCO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.95, ARCO perfoms like the industry average, outperforming 51.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.95
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 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ARCO Growth Analysis

3.1 Past

  • The earnings per share for ARCO have decreased strongly by -43.06% in the last year.
  • The earnings per share for ARCO have been decreasing by -15.52% on average. This is quite bad
  • The Revenue has grown by 80.98% in the past year. This is a very strong growth!
  • The Revenue has been growing by 18.71% on average over the past years. This is quite good.
EPS 1Y (TTM)-43.06%
EPS 3Y-15.52%
EPS 5YN/A
EPS Q2Q%-57.14%
Revenue 1Y (TTM)80.98%
Revenue growth 3Y8.94%
Revenue growth 5Y18.71%
Sales Q2Q%10.88%

3.2 Future

  • Based on estimates for the next years, ARCO will show a very strong growth in Earnings Per Share. The EPS will grow by 28.91% on average per year.
  • Based on estimates for the next years, ARCO will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
EPS Next Y69.59%
EPS Next 2Y43.48%
EPS Next 3Y31.79%
EPS Next 5Y28.91%
Revenue Next Year9.77%
Revenue Next 2Y8.17%
Revenue Next 3Y6.92%
Revenue Next 5Y6.79%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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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7

4. ARCO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.68, which indicates a rather expensive current valuation of ARCO.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARCO indicates a somewhat cheap valuation: ARCO is cheaper than 64.29% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. ARCO is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 11.61 indicates a reasonable valuation of ARCO.
  • Based on the Price/Forward Earnings ratio, ARCO is valued cheaper than 80.95% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ARCO is valued a bit cheaper.
Industry RankSector Rank
PE 19.68
Fwd PE 11.61
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 96.83% of the companies are valued more expensively.
  • ARCO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 113.38
EV/EBITDA 2.95
ARCO Per share dataARCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • ARCO has a very decent profitability rating, which may justify a higher PE ratio.
  • ARCO's earnings are expected to grow with 31.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y43.48%
EPS Next 3Y31.79%

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7

5. ARCO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.39%, ARCO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.09, ARCO pays a better dividend. On top of this ARCO pays more dividend than 88.10% 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 1.90.
Industry RankSector Rank
Dividend Yield 3.39%

5.2 History

  • On average, the dividend of ARCO grows each year by 37.50%, 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)37.5%
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

  • 12.67% of the earnings are spent on dividend by ARCO. This is a low number and sustainable payout ratio.
  • The dividend of ARCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.67%
EPS Next 2Y43.48%
EPS Next 3Y31.79%
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 2025 0 100M -100M 200M
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 (3/27/2026, 8:04:00 PM)

After market: 8.07 0 (0%)

8.07

-0.2 (-2.42%)

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 Change0%
Market Cap1.70B
Revenue(TTM)8.09B
Net Income(TTM)399.06M
Analysts81.43
Price Target10.45 (29.49%)
Short Float %2.16%
Short Ratio2.94
Dividend
Industry RankSector Rank
Dividend Yield 3.39%
Yearly Dividend0.24
Dividend Growth(5Y)37.5%
DP12.67%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.34%
Min EPS beat(2)-41.18%
Max EPS beat(2)-9.5%
EPS beat(4)1
Avg EPS beat(4)-15.78%
Min EPS beat(4)-41.18%
Max EPS beat(4)27.87%
EPS beat(8)3
Avg EPS beat(8)-6.74%
EPS beat(12)5
Avg EPS beat(12)-2.12%
EPS beat(16)8
Avg EPS beat(16)10.7%
Revenue beat(2)1
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)0.04%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)0.15%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)-0.16%
Revenue beat(16)10
Avg Revenue beat(16)0.7%
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 19.68
Fwd PE 11.61
P/S 0.21
P/FCF 113.38
P/OCF 5.74
P/B 2.21
P/tB 2.74
EV/EBITDA 2.95
EPS(TTM)0.41
EY5.08%
EPS(NY)0.7
Fwd EY8.62%
FCF(TTM)0.07
FCFY0.88%
OCF(TTM)1.41
OCFY17.43%
SpS38.4
BVpS3.66
TBVpS2.95
PEG (NY)0.28
PEG (5Y)N/A
Graham Number5.81
Profitability
Industry RankSector Rank
ROA 10.27%
ROE 51.79%
ROCE 20.25%
ROIC 12.14%
ROICexc 14.09%
ROICexgc 14.93%
OM 7.65%
PM (TTM) 4.93%
GM 11.96%
FCFM 0.19%
ROA(3y)5.54%
ROA(5y)4.77%
ROE(3y)30.66%
ROE(5y)31.2%
ROIC(3y)8.24%
ROIC(5y)7.55%
ROICexc(3y)9.19%
ROICexc(5y)8.62%
ROICexgc(3y)9.58%
ROICexgc(5y)8.95%
ROCE(3y)13.95%
ROCE(5y)12.71%
ROICexgc growth 3Y-5.73%
ROICexgc growth 5YN/A
ROICexc growth 3Y-6.45%
ROICexc growth 5YN/A
OM growth 3Y1.99%
OM growth 5YN/A
PM growth 3Y5.36%
PM growth 5YN/A
GM growth 3Y-20.83%
GM growth 5Y-6.17%
F-Score5
Asset Turnover2.08
Health
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF 75.87
Debt/EBITDA 1.38
Cap/Depr 142.63%
Cap/Sales 3.48%
Interest Coverage 10.43
Cash Conversion 36.3%
Profit Quality 3.76%
Current Ratio 1.03
Quick Ratio 0.95
Altman-Z 3.25
F-Score5
WACC7.14%
ROIC/WACC1.7
Cap/Depr(3y)189.54%
Cap/Depr(5y)169.07%
Cap/Sales(3y)7.22%
Cap/Sales(5y)6.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.06%
EPS 3Y-15.52%
EPS 5YN/A
EPS Q2Q%-57.14%
EPS Next Y69.59%
EPS Next 2Y43.48%
EPS Next 3Y31.79%
EPS Next 5Y28.91%
Revenue 1Y (TTM)80.98%
Revenue growth 3Y8.94%
Revenue growth 5Y18.71%
Sales Q2Q%10.88%
Revenue Next Year9.77%
Revenue Next 2Y8.17%
Revenue Next 3Y6.92%
Revenue Next 5Y6.79%
EBIT growth 1Y90.8%
EBIT growth 3Y11.1%
EBIT growth 5YN/A
EBIT Next Year67.45%
EBIT Next 3Y26.49%
EBIT Next 5Y22.32%
FCF growth 1Y124.67%
FCF growth 3Y-51.11%
FCF growth 5YN/A
OCF growth 1Y11.05%
OCF growth 3Y-4.98%
OCF growth 5Y79.28%

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 5 / 10 to ARCO.


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

ChartMill assigns a valuation rating of 7 / 10 to ARCOS DORADOS HOLDINGS INC-A (ARCO). This can be considered as Undervalued.


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 19.68 and the Price/Book (PB) ratio is 2.21.


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 3 / 10.