Arcos Dorados Holdings Stock Buy Hold or Sell Recommendation
| ARCO Stock | USD 8.43 0.03 0.36% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Arcos Dorados Holdings is 'Cautious Hold'. The recommendation algorithm takes into account all of Arcos Dorados' available fundamental, technical, and predictive indicators you will find on this site.
Check out Arcos Dorados Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Arcos and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Arcos Dorados Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
Arcos |
Execute Arcos Dorados Buy or Sell Advice
The Arcos recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Arcos Dorados Holdings. Macroaxis does not own or have any residual interests in Arcos Dorados Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Arcos Dorados' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Arcos Dorados Trading Alerts and Improvement Suggestions
| Arcos Dorados generated a negative expected return over the last 90 days | |
| Arcos Dorados Holdings currently holds 1.71 B in liabilities with Debt to Equity (D/E) ratio of 7.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Arcos Dorados Holdings has a current ratio of 0.84, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Arcos Dorados' use of debt, we should always consider it together with its cash and equity. | |
| Arcos Dorados has a strong financial position based on the latest SEC filings | |
| Latest headline from gurufocus.com: Arcos Dorados Holdings Inc Q3 2024 Earnings Call Highlights Record Revenue and Strong ... |
Arcos Dorados Returns Distribution Density
The distribution of Arcos Dorados' historical returns is an attempt to chart the uncertainty of Arcos Dorados' future price movements. The chart of the probability distribution of Arcos Dorados daily returns describes the distribution of returns around its average expected value. We use Arcos Dorados Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Arcos Dorados returns is essential to provide solid investment advice for Arcos Dorados.
| Mean Return | -0.03 | Value At Risk | -3.03 | Potential Upside | 3.57 | Standard Deviation | 2.66 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Arcos Dorados historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Arcos Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Arcos Dorados, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Arcos Dorados Holdings back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Inca Investments, Llc | 2024-09-30 | 1.3 M | Mirae Asset Global Etfs Holdings Ltd. | 2024-06-30 | 1.2 M | Millennium Management Llc | 2024-06-30 | 1.1 M | Timessquare Capital Management, Llc | 2024-09-30 | 1.1 M | Qube Research & Technologies | 2024-06-30 | 1.1 M | Banco Btg Pactual S.a. | 2024-09-30 | 996.3 K | Clearbridge Advisors, Llc | 2024-09-30 | 951.8 K | Bank Of America Corp | 2024-06-30 | 932.5 K | Voloridge Investment Management, Llc | 2024-09-30 | 869.1 K | Nuveen Asset Management, Llc | 2024-06-30 | 15.8 M | Jpmorgan Chase & Co | 2024-06-30 | 12.8 M |
Arcos Dorados Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (21.8M) | (25.0M) | (38.7M) | (33.2M) | (35.7M) | (37.5M) | |
| Change In Cash | (75.4M) | 44.1M | 112.8M | (11.9M) | (70.3M) | (66.8M) | |
| Free Cash Flow | (41.8M) | (70.3M) | 143.0M | 128.3M | 21.9M | 21.1M | |
| Depreciation | 123.2M | 126.9M | 120.4M | 119.8M | 149.3M | 114.7M | |
| Other Non Cash Items | (1.8M) | 43.5M | 14.9M | 10.4M | 18.8M | 21.9M | |
| Capital Expenditures | 265.2M | 86.3M | 115.0M | 217.1M | 360.1M | 217.2M | |
| Net Income | 79.9M | (149.5M) | 45.5M | 140.3M | 181.3M | 190.3M | |
| End Period Cash Flow | 121.9M | 166.0M | 278.8M | 266.9M | 196.7M | 212.3M | |
| Dividends Paid | 22.4M | 10.2M | 21K | 31.6M | 40.0M | 22.1M | |
| Change To Netincome | (8.9M) | 41.8M | (4.6M) | (4.3M) | (3.9M) | (3.7M) | |
| Investments | (261.0M) | (88.7M) | (108.3M) | (259.6M) | (377.9M) | (359.0M) |
Arcos Dorados Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Arcos Dorados or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Arcos Dorados' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Arcos stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 0.62 | |
σ | Overall volatility | 2.63 | |
Ir | Information ratio | -0.06 |
Arcos Dorados Volatility Alert
Arcos Dorados Holdings exhibits very low volatility with skewness of 2.59 and kurtosis of 12.96. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arcos Dorados' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arcos Dorados' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Arcos Dorados Fundamentals Vs Peers
Comparing Arcos Dorados' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Arcos Dorados' direct or indirect competition across all of the common fundamentals between Arcos Dorados and the related equities. This way, we can detect undervalued stocks with similar characteristics as Arcos Dorados or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Arcos Dorados' fundamental indicators could also be used in its relative valuation, which is a method of valuing Arcos Dorados by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Arcos Dorados to competition |
| Fundamentals | Arcos Dorados | Peer Average |
| Return On Equity | 0.39 | -0.31 |
| Return On Asset | 0.0693 | -0.14 |
| Profit Margin | 0.04 % | (1.27) % |
| Operating Margin | 0.07 % | (5.51) % |
| Current Valuation | 3.36 B | 16.62 B |
| Shares Outstanding | 130.66 M | 571.82 M |
| Shares Owned By Insiders | 3.12 % | 10.09 % |
| Shares Owned By Institutions | 45.19 % | 39.21 % |
| Number Of Shares Shorted | 4.52 M | 4.71 M |
| Price To Earning | 11.52 X | 28.72 X |
| Price To Book | 3.45 X | 9.51 X |
| Price To Sales | 0.39 X | 11.42 X |
| Revenue | 4.33 B | 9.43 B |
| Gross Profit | 492.61 M | 27.38 B |
| EBITDA | 455.98 M | 3.9 B |
| Net Income | 181.27 M | 570.98 M |
| Cash And Equivalents | 289.42 M | 2.7 B |
| Cash Per Share | 1.37 X | 5.01 X |
| Total Debt | 1.71 B | 5.32 B |
| Debt To Equity | 7.40 % | 48.70 % |
| Current Ratio | 0.86 X | 2.16 X |
| Book Value Per Share | 2.45 X | 1.93 K |
| Cash Flow From Operations | 381.96 M | 971.22 M |
| Short Ratio | 3.59 X | 4.00 X |
| Earnings Per Share | 0.69 X | 3.12 X |
| Price To Earnings To Growth | 2.15 X | 4.89 X |
| Target Price | 13.13 | |
| Beta | 1.16 | -0.15 |
| Market Capitalization | 1.77 B | 19.03 B |
| Total Asset | 3.02 B | 29.47 B |
| Retained Earnings | 566.19 M | 9.33 B |
| Working Capital | (236.39 M) | 1.48 B |
| Current Asset | 379 M | 9.34 B |
Arcos Dorados Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Arcos . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Arcos Dorados Buy or Sell Advice
When is the right time to buy or sell Arcos Dorados Holdings? Buying financial instruments such as Arcos Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Arcos Dorados Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arcos Dorados. If investors know Arcos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arcos Dorados listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.08) | Earnings Share 0.69 | Revenue Per Share 21.328 | Quarterly Revenue Growth 0.068 | Return On Assets 0.0693 |
The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arcos Dorados' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arcos Dorados is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.