Arcos Dorados Holdings, Inc. (ARCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Brinker International, Inc.

Arcos Dorados Holdings, Inc.

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Cava Group, Inc.

Shake Shack, Inc.

Bloomin' Brands, Inc.

Cracker Barrel Old Country Store, Inc.

Cannae Holdings, Inc.

Jack in the Box, Inc.

Papa John's International, Inc.

The Wendy's Co.

Why is Arcos Dorados Holdings, Inc. ?

High Management Efficiency with a high ROCE of 21.24%

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 21.24%

Positive results in Jun 25

CASH AND EQV(HY) Highest at USD 728.65 MM

With ROCE of 23.04%, it has a fair valuation with a 1.82 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.28%, its profits have fallen by -25.4%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Arcos Dorados Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Arcos Dorados Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arcos Dorados Holdings, Inc.

18.05%

-0.55

34.26%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.71%

EBIT Growth (5y)

42.29%

EBIT to Interest (avg)

6.08

Debt to EBITDA (avg)

3.74

Net Debt to Equity (avg)

1.58

Sales to Capital Employed (avg)

2.98

Tax Ratio

43.44%

Dividend Payout Ratio

23.84%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

21.24%

ROE (avg)

30.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.23

EV to EBIT

9.67

EV to EBITDA

5.52

EV to Capital Employed

1.60

EV to Sales

0.54

PEG Ratio

0.19

Dividend Yield

ROCE (Latest)

16.49%

ROE (Latest)

27.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 288.39 MM

PRE-TAX PROFIT(Q)

At USD 55.68 MM has Grown at 110.32%

NET PROFIT(Q)

At USD 33.5 MM has Grown at 141.53%

RAW MATERIAL COST(Y)

Fallen by 0.6% (YoY

CASH AND EQV(HY)

Highest at USD 688.51 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 162.93 times

DEBTORS TURNOVER RATIO(HY)

Highest at 27.51 times

DIVIDEND PER SHARE(HY)

Highest at USD 27.51

-2What is not working for the Company

INTEREST(Q)

At USD 14.26 MM has Grown at 152.09%

Here's what is working for Arcos Dorados Holdings, Inc.

Operating Cash Flow

Highest at USD 288.39 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 55.68 MM has Grown at 110.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 33.5 MM has Grown at 141.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 688.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 162.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 27.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 27.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 0.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 54.26 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Arcos Dorados Holdings, Inc.

Interest

At USD 14.26 MM has Grown at 152.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)