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

NYSE:ARCO • VGG0457F1071

Current stock price

7.71 USD
-0.03 (-0.39%)
At close:
7.71 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.
  • In the past year ARCO had a positive cash flow from operations.
  • ARCO had positive earnings in 4 of the past 5 years.
  • 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 0 100M -100M 200M 300M

1.2 Ratios

  • ARCO has a better Return On Assets (6.88%) than 76.98% of its industry peers.
  • The Return On Equity of ARCO (32.94%) is better than 86.51% of its industry peers.
  • With a decent Return On Invested Capital value of 7.78%, ARCO is doing good in the industry, outperforming 61.90% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ARCO is in line with the industry average of 10.48%.
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 has a Profit Margin (5.39%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of ARCO has grown nicely.
  • ARCO has a Operating Margin of 7.85%. This is comparable to the rest of the industry: ARCO outperforms 46.83% of its industry peers.
  • In the last couple of years the Operating Margin of ARCO has grown nicely.
  • ARCO has a Gross Margin of 12.39%. This is amonst the worse of the industry: ARCO underperforms 91.27% of its industry peers.
  • ARCO's Gross Margin has improved in the last couple of years.
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

  • ARCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • ARCO has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ARCO has been increased compared to 5 years ago.
  • Compared to 1 year ago, ARCO has a worse debt to assets ratio.
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.
  • ARCO has a debt to FCF ratio of 383.76. This is a negative value and a sign of low solvency as ARCO would need 383.76 years to pay back of all of its debts.
  • The Debt to FCF ratio of ARCO (383.76) is worse than 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.
  • ARCO has a Debt to Equity ratio (1.32) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 383.76
Altman-Z 2.24
ROIC/WACC1.05
WACC7.42%
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.
  • ARCO has a Current ratio (0.89) which is in line with its industry peers.
  • ARCO has a Quick Ratio of 0.89. 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 0.81, ARCO perfoms like the industry average, outperforming 42.06% of the companies in the same 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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4

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 -18.57%.
  • ARCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.38% yearly.
  • The Revenue has been growing slightly by 1.21% in the past year.
  • Measured over the past years, ARCO shows a quite strong growth in Revenue. The Revenue has been growing by 8.60% on average per year.
EPS 1Y (TTM)-18.57%
EPS 3Y45.99%
EPS 5Y11.38%
EPS Q2Q%-29.41%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y18.89%
Revenue growth 5Y8.6%
Sales Q2Q%5.22%

3.2 Future

  • Based on estimates for the next years, ARCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
  • Based on estimates for the next years, ARCO will show a small growth in Revenue. The Revenue will grow by 6.20% on average per year.
EPS Next Y-3.67%
EPS Next 2Y-1.73%
EPS Next 3Y5.44%
EPS Next 5Y9.48%
Revenue Next Year3.84%
Revenue Next 2Y6.77%
Revenue Next 3Y6.71%
Revenue Next 5Y6.2%

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 stable.
  • 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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5

4. ARCO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.53, which indicates a correct valuation of ARCO.
  • Based on the Price/Earnings ratio, ARCO is valued cheaply inside the industry as 81.75% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.70. ARCO is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 11.09, the valuation of ARCO can be described as reasonable.
  • 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.
  • ARCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.53
Fwd PE 11.09
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

  • ARCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARCO is cheaper than 95.24% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ARCO is valued a bit more expensive than the industry average as 62.70% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 628.8
EV/EBITDA 4.18
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 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-1.73%
EPS Next 3Y5.44%

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7

5. ARCO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.10%, ARCO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.11, 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 1.89.
Industry RankSector Rank
Dividend Yield 3.1%

5.2 History

  • The dividend of ARCO is nicely growing with an annual growth rate of 17.60%!
  • 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

  • ARCO pays out 20.61% of its income as dividend. This is a sustainable payout ratio.
  • ARCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.61%
EPS Next 2Y-1.73%
EPS Next 3Y5.44%
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 (3/13/2026, 8:10:07 PM)

After market: 7.71 0 (0%)

7.71

-0.03 (-0.39%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-12
Earnings (Next)03-19
Inst Owners50.3%
Inst Owner Change-10.52%
Ins Owners4.55%
Ins Owner ChangeN/A
Market Cap1.62B
Revenue(TTM)4.56B
Net Income(TTM)245.35M
Analysts81.43
Price Target10.45 (35.54%)
Short Float %2.21%
Short Ratio3.26
Dividend
Industry RankSector Rank
Dividend Yield 3.1%
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 13.53
Fwd PE 11.09
P/S 0.36
P/FCF 628.8
P/OCF 5.99
P/B 2.18
P/tB 2.71
EV/EBITDA 4.18
EPS(TTM)0.57
EY7.39%
EPS(NY)0.7
Fwd EY9.02%
FCF(TTM)0.01
FCFY0.16%
OCF(TTM)1.29
OCFY16.68%
SpS21.63
BVpS3.54
TBVpS2.84
PEG (NY)N/A
PEG (5Y)1.19
Graham Number6.73
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
WACC7.42%
ROIC/WACC1.05
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)-18.57%
EPS 3Y45.99%
EPS 5Y11.38%
EPS Q2Q%-29.41%
EPS Next Y-3.67%
EPS Next 2Y-1.73%
EPS Next 3Y5.44%
EPS Next 5Y9.48%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y18.89%
Revenue growth 5Y8.6%
Sales Q2Q%5.22%
Revenue Next Year3.84%
Revenue Next 2Y6.77%
Revenue Next 3Y6.71%
Revenue Next 5Y6.2%
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 5 / 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 13.53 and the Price/Book (PB) ratio is 2.18.


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.