Arcos Dorados Holdings Inc
NYSE:ARCO
Intrinsic Value
Arcos Dorados Holdings, Inc. engages in the operation of restaurants. [ Read More ]
The intrinsic value of one
ARCO
stock under the Base Case scenario is
18.47
USD.
Compared to the current market price of 11.15 USD,
Arcos Dorados Holdings Inc
is
Undervalued by 40%.
ARCO could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Arcos Dorados Holdings Inc's market capitalization is 2.3B USD.
ARCO stock price is 11.15 USD.
ARCO stock price (11.15 USD) is 40% less than its Intrinsic Value (18.47 USD).
ARCO stock price (11.15 USD) is 47% less than its Relative Value (20.86 USD). Open Relative Valuation
ARCO has upside potential of 28% compared to the average analyst price target.
Open Wall St Estimates
ARCO's Altman Z-Score is equal to 2.5.
ARCO's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 10%.
ARCO has positive Gross Profit for the last twelve months.
ARCO's long-term assets (3B USD) exceed its long-term liabilties (3B USD).
ARCO has positive Free Cash Flow for the last twelve months.
ARCO's Revenue is forecast to grow at a rate of 8% per year over the next 3 years.
ARCO's Revenue has grown by 20% over the past 12 months.
ARCO has positive Operating Income for the last twelve months.
ARCO has positive three-year average ROIC (Return on Invested Capital): 6%. The company is efficient at using invested capital to generate operating income.
ARCO's D/E (Debt to Equity) is equal to 1.44.
ARCO has positive Net Income for the last twelve months.
ARCO's ROIC (Return on Invested Capital) has significantly increased in the last 3 years from -4% to 10%.
ARCO's ROE (Return on Equity) has significantly increased in the last 3 years from -60% to 43%.
ARCO's short-term liabilties (842m USD) exceed its short-term assets (605m USD).
ARCO has positive Net Debt. This means that the company has more debt (743m USD) than cash and short-term investments (247m USD).
ARCO's Revenue has been growing by an exceptional 30% per year for the last 3 years.
ARCO's ROE (Return on Equity) for the past 12 months is very high and is equal to 43%.
ARCO has positive three-year average ROE (Return on Equity): 25%. The company is efficient at transforming stockholders' equity into net income.
ARCO generates enough operating income (314m USD) to cover interest payments on its debt (48m USD).
Valuation Backtest
Arcos Dorados Holdings Inc
Run backtest to discover the historical profit from buying and selling
ARCO
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Arcos Dorados Holdings Inc
Balance Sheet Decomposition
Arcos Dorados Holdings Inc
| Current Assets | 605.3m |
| Cash & Short-Term Investments | 246.8m |
| Receivables | 186.7m |
| Other Current Assets | 171.8m |
| Non-Current Assets | 2.4B |
| Long-Term Investments | 20.6m |
| PP&E | 2.1B |
| Intangibles | 70m |
| Other Non-Current Assets | 248.9m |
| Current Liabilities | 841.7m |
| Accounts Payable | 396.3m |
| Accrued Liabilities | 243.4m |
| Short-Term Debt | 29.5m |
| Other Current Liabilities | 172.4m |
| Non-Current Liabilities | 1.7B |
| Long-Term Debt | 713m |
| Other Non-Current Liabilities | 949.2m |
Earnings Waterfall
Arcos Dorados Holdings Inc
|
Revenue
|
4.3B
USD
|
|
Cost of Revenue
|
-3.7B
USD
|
|
Gross Profit
|
597.1m
USD
|
|
Operating Expenses
|
-283.1m
USD
|
|
Operating Income
|
314m
USD
|
|
Other Expenses
|
-132.8m
USD
|
|
Net Income
|
181.3m
USD
|
Free Cash Flow Analysis
Arcos Dorados Holdings Inc
What is Free Cash Flow?
ARCO Profitability Score
Profitability Due Diligence
Arcos Dorados Holdings Inc's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
Score
Arcos Dorados Holdings Inc's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
ARCO Solvency Score
Solvency Due Diligence
Arcos Dorados Holdings Inc's solvency score is 40/100. The higher the solvency score, the more solvent the company is.
Score
Arcos Dorados Holdings Inc's solvency score is 40/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ARCO Price Targets Summary
Arcos Dorados Holdings Inc
According to Wall Street analysts, the average 1-year price target for
ARCO
is 14.28 USD
with a low forecast of 12.12 USD and a high forecast of 15.75 USD.
Shareholder Return
ARCO Price
Arcos Dorados Holdings Inc
| Average Annual Return | 9.54% |
| Standard Deviation of Annual Returns | 32.49% |
| Max Drawdown | -64% |
| Market Capitalization | 2.3B USD |
| Shares Outstanding | 210 650 000 |
| Percentage of Shares Shorted | 3.13% |
Company Profile
Arcos Dorados Holdings Inc
Country
Industry
Market Cap
Dividend Yield
Description
Arcos Dorados Holdings, Inc. engages in the operation of restaurants. The firm operates or franchises over 2,140 McDonald's-branded restaurants. The company divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
Contact
IPO
Employees
Officers
The intrinsic value of one
ARCO
stock under the Base Case scenario is
18.47
USD.
Compared to the current market price of 11.15 USD,
Arcos Dorados Holdings Inc
is
Undervalued by 40%.
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