Arcos Dorados (Germany) Performance
| AD8 Stock | EUR 7.60 0.06 0.78% |
The firm shows a Beta (market volatility) of 0.61, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Arcos Dorados' returns are expected to increase less than the market. However, during the bear market, the loss of holding Arcos Dorados is expected to be smaller as well. At this point, Arcos Dorados Holdings has a negative expected return of -0.0106%. Please make sure to confirm Arcos Dorados' market risk adjusted performance, coefficient of variation, jensen alpha, as well as the relationship between the mean deviation and standard deviation , to decide if Arcos Dorados Holdings performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Arcos Dorados Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Arcos Dorados is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders. ...more
| Begin Period Cash Flow | 166 M | |
| Total Cashflows From Investing Activities | -108.3 M |
Arcos |
Arcos Dorados Relative Risk vs. Return Landscape
If you would invest 784.00 in Arcos Dorados Holdings on September 2, 2024 and sell it today you would lose (24.00) from holding Arcos Dorados Holdings or give up 3.06% of portfolio value over 90 days. Arcos Dorados Holdings is currently producing negative expected returns and takes up 2.7871% volatility of returns over 90 trading days. Put another way, 24% of traded stocks are less volatile than Arcos, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
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Arcos Dorados Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Arcos Dorados' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Arcos Dorados Holdings, and traders can use it to determine the average amount a Arcos Dorados' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0038
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| Negative Returns | AD8 |
Estimated Market Risk
| 2.79 actual daily | 24 76% of assets are more volatile |
Expected Return
| -0.01 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| 0.0 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Arcos Dorados is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Arcos Dorados by adding Arcos Dorados to a well-diversified portfolio.
Arcos Dorados Fundamentals Growth
Arcos Stock prices reflect investors' perceptions of the future prospects and financial health of Arcos Dorados, and Arcos Dorados fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Arcos Stock performance.
| Return On Equity | 0.62 | |||
| Return On Asset | 0.067 | |||
| Profit Margin | 0.04 % | |||
| Operating Margin | 0.07 % | |||
| Current Valuation | 2.68 B | |||
| Shares Outstanding | 130.59 M | |||
| Price To Earning | 25.57 X | |||
| Price To Book | 6.39 X | |||
| Price To Sales | 0.45 X | |||
| Revenue | 2.66 B | |||
| EBITDA | 247.73 M | |||
| Cash And Equivalents | 148.29 M | |||
| Cash Per Share | 0.71 X | |||
| Total Debt | 739.22 M | |||
| Debt To Equity | 9.71 % | |||
| Book Value Per Share | 1.15 X | |||
| Cash Flow From Operations | 258.04 M | |||
| Earnings Per Share | 0.61 X | |||
| Total Asset | 2.36 B | |||
About Arcos Dorados Performance
By analyzing Arcos Dorados' fundamental ratios, stakeholders can gain valuable insights into Arcos Dorados' financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Arcos Dorados has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Arcos Dorados has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Arcos Dorados Holdings Inc. operates as a franchisee of McDonalds restaurants. The company was founded in 2007 and is based in Montevideo, Uruguay. ARCOS DORADOS operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange.Things to note about Arcos Dorados Holdings performance evaluation
Checking the ongoing alerts about Arcos Dorados for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Arcos Dorados Holdings help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Arcos Dorados generated a negative expected return over the last 90 days | |
| Arcos Dorados Holdings has accumulated 739.22 M in total debt with debt to equity ratio (D/E) of 9.71, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Arcos Dorados Holdings has a current ratio of 0.78, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Arcos Dorados until it has trouble settling it off, either with new capital or with free cash flow. So, Arcos Dorados' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Arcos Dorados Holdings sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Arcos to invest in growth at high rates of return. When we think about Arcos Dorados' use of debt, we should always consider it together with cash and equity. |
- Analyzing Arcos Dorados' financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Arcos Dorados' stock is overvalued or undervalued compared to its peers.
- Examining Arcos Dorados' industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Arcos Dorados' management team can have a significant impact on its success or failure. Reviewing the track record and experience of Arcos Dorados' management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Arcos Dorados' stock. These opinions can provide insight into Arcos Dorados' potential for growth and whether the stock is currently undervalued or overvalued.
Complementary Tools for Arcos Stock analysis
When running Arcos Dorados' price analysis, check to measure Arcos Dorados' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arcos Dorados is operating at the current time. Most of Arcos Dorados' value examination focuses on studying past and present price action to predict the probability of Arcos Dorados' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arcos Dorados' price. Additionally, you may evaluate how the addition of Arcos Dorados to your portfolios can decrease your overall portfolio volatility.
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