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

NYSE:ARCO • VGG0457F1071

Current stock price

8.96 USD
+0.29 (+3.34%)
At close:
8.96 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

  • In the past year ARCO was profitable.
  • ARCO had a positive operating cash flow in the past year.
  • In the past 5 years ARCO has always 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

  • With an excellent Return On Assets value of 10.27%, ARCO belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
  • ARCO has a better Return On Equity (51.79%) than 91.27% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.14%, ARCO is in the better half of the industry, outperforming 75.40% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCO is below the industry average of 10.55%.
  • 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

  • Looking at the Profit Margin, with a value of 4.93%, ARCO is in line with its industry, 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.
  • The Gross Margin of ARCO (11.96%) is worse than 91.27% of its industry peers.
  • 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARCO is creating some value.
  • ARCO has more shares outstanding than it did 1 year ago.
  • 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 3.26 indicates that ARCO is not in any danger for bankruptcy at the moment.
  • ARCO has a Altman-Z score of 3.26. This is in the better half of the industry: ARCO outperforms 78.57% of its industry peers.
  • The Debt to FCF ratio of ARCO is 75.87, which is on the high side as it means it would take ARCO, 75.87 years of fcf income to pay off all of its debts.
  • ARCO's Debt to FCF ratio of 75.87 is on the low side compared to the rest of the industry. ARCO is outperformed by 63.49% of its industry peers.
  • A Debt/Equity ratio of 1.46 is on the high side and indicates that ARCO has dependencies on debt financing.
  • ARCO has a Debt to Equity ratio (1.46) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF 75.87
Altman-Z 3.26
ROIC/WACC1.7
WACC7.15%
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

  • A Current Ratio of 1.03 indicates that ARCO should not have too much problems paying its short term obligations.
  • ARCO's Current ratio of 1.03 is in line compared to the rest of the industry. ARCO outperforms 52.38% of its industry peers.
  • A Quick Ratio of 0.95 indicates that ARCO may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.95, ARCO perfoms like the industry average, outperforming 52.38% 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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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!
  • ARCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.71% yearly.
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

  • The Earnings Per Share is expected to grow by 28.91% on average over the next years. This is a very strong growth
  • ARCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y62.95%
EPS Next 2Y42.83%
EPS Next 3Y31.79%
EPS Next 5Y28.91%
Revenue Next Year10%
Revenue Next 2Y7.09%
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

  • Based on the Price/Earnings ratio of 21.85, the valuation of ARCO can be described as rather expensive.
  • ARCO's Price/Earnings ratio is a bit cheaper when compared to the industry. ARCO is cheaper than 62.70% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.87, ARCO is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 13.41, ARCO is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCO indicates a rather cheap valuation: ARCO is cheaper than 81.75% of the companies listed in the same industry.
  • ARCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.51.
Industry RankSector Rank
PE 21.85
Fwd PE 13.41
ARCO Price Earnings VS Forward Price EarningsARCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARCO indicates a rather cheap valuation: ARCO is cheaper than 96.03% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ARCO.
Industry RankSector Rank
P/FCF 125.88
EV/EBITDA 3.05
ARCO Per share dataARCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The 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 31.79% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y42.83%
EPS Next 3Y31.79%

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7

5. ARCO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.28%, 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 88.89% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARCO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.28%

5.2 History

  • The dividend of ARCO is nicely growing with an annual growth rate of 37.50%!
  • 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 Years0
Div Non Decr Years3
ARCO Yearly Dividends per shareARCO Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2022 2023 2024 2025 2026 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 2Y42.83%
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 (4/17/2026, 8:04:00 PM)

After market: 8.96 0 (0%)

8.96

+0.29 (+3.34%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-19
Earnings (Next)05-12
Inst Owners50.59%
Inst Owner Change0.11%
Ins Owners4.55%
Ins Owner Change0%
Market Cap1.89B
Revenue(TTM)8.09B
Net Income(TTM)399.06M
Analysts81.43
Price Target10.45 (16.63%)
Short Float %1.52%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 3.28%
Yearly Dividend0.24
Dividend Growth(5Y)37.5%
DP12.67%
Div Incr Years0
Div Non Decr Years3
Ex-Date06-22
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)0%
PT rev (3m)6.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.18%
EPS NY rev (1m)-3.91%
EPS NY rev (3m)-4.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.49%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)2.29%
Valuation
Industry RankSector Rank
PE 21.85
Fwd PE 13.41
P/S 0.23
P/FCF 125.88
P/OCF 6.37
P/B 2.45
P/tB 3.04
EV/EBITDA 3.05
EPS(TTM)0.41
EY4.58%
EPS(NY)0.67
Fwd EY7.46%
FCF(TTM)0.07
FCFY0.79%
OCF(TTM)1.41
OCFY15.7%
SpS38.4
BVpS3.66
TBVpS2.95
PEG (NY)0.35
PEG (5Y)N/A
Graham Number5.80866 (-35.17%)
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 3.26
F-Score5
WACC7.15%
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 Y62.95%
EPS Next 2Y42.83%
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 Year10%
Revenue Next 2Y7.09%
Revenue Next 3Y6.92%
Revenue Next 5Y6.79%
EBIT growth 1Y90.8%
EBIT growth 3Y11.1%
EBIT growth 5YN/A
EBIT Next Year64.98%
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.


How profitable is ARCOS DORADOS HOLDINGS INC-A (ARCO) stock?

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


What is the earnings growth outlook for ARCOS DORADOS HOLDINGS INC-A?

The Earnings per Share (EPS) of ARCOS DORADOS HOLDINGS INC-A (ARCO) is expected to grow by 62.95% in the next year.


Is the dividend of ARCOS DORADOS HOLDINGS INC-A sustainable?

The dividend rating of ARCOS DORADOS HOLDINGS INC-A (ARCO) is 7 / 10 and the dividend payout ratio is 12.67%.