NYSE
ARCO
Last Price
US $8.04
KEY FIGURES
MKT CAP
$1.8B
EPS
TTM
$1.11
PEG
TTM
0.11x
P/E
TTM
7.50x
P/S
TTM
0.38x
YIELD
3.12%
GROWTH
Revenue Y/Y
18.71%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $8.04
—
Default assumptions
EBITDA Multiple
Fair Value
Market $8.04
25.87%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Arcos Dorados Holdings Inc. cash flow to debt ratio of 13.20% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Arcos Dorados Holdings Inc.'s free cash flow has increased -124.67% from $-60.79M last year to $14.99M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Arcos Dorados Holdings Inc.'s debt to equity ratio is 2.82, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Arcos Dorados Holdings Inc.'s debt has decreased relative to shareholder equity from 3.39 last year to 2.82 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Arcos Dorados Holdings Inc. has a net debt to EBITDA ratio of 3.27x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Arcos Dorados Holdings Inc.'s interest coverage ratio of 8.83 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Arcos Dorados Holdings Inc.'s profit margin has increased (46.16%) in the last year from 3.33% to 4.86%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Arcos Dorados Holdings Inc.'s short-term assets of $851.96M exceed its short-term liabilities of $828.74M
Increasing performance - ROA.
Arcos Dorados Holdings Inc.'s return on assets of 6.14% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Arcos Dorados Holdings Inc.'s return on equity of 32.65%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Arcos Dorados Holdings Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Arcos Dorados Holdings Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Arcos Dorados Holdings Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Decreasing performance - FCF yield.
Arcos Dorados Holdings Inc. has a free cash flow yield of 0.85%, which is below the 2.00% threshold, indicating limited cash return relative to market value
Increasing performance - Healthy earnings growth.
Arcos Dorados Holdings Inc.'s yearly earnings has increased 42.59% since last year from $148.76M to $212.12M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Arcos Dorados Holdings Inc.'s yearly revenue has increased 4.66% since last year from $4.47G to $4.68G, signaling increasing performance
Increasing performance - ROIC.
ROIC 7.27% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Arcos Dorados Holdings Inc.'s 3-year revenue CAGR of 8.94% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Arcos Dorados Holdings Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Arcos Dorados Holdings Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Arcos Dorados Holdings Inc. has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Arcos Dorados Holdings Inc. has an earnings yield of 13.35%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
Arcos Dorados Holdings Inc. is undervalued relative to its fair value price of 10.12 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Arcos Dorados Holdings Inc. has an EV/EBITDA ratio of 5.93x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Arcos Dorados Holdings Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Arcos Dorados Holdings Inc. has a price-to-book ratio of 2.26x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Arcos Dorados Holdings Inc. has a price-to-sales ratio of 0.36x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
32.65%
Return on equity
ROIC: 7.27%
Valuation History
7.5X
Price to Earnings
EV/EBITDA: 5.9X
Cash flow
Profit margin
82.31%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
EARNINGS FV (GRAHAM)
Fair Value
Market $8.04
232.46%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.