Arcos Dorados Gross Profit vs. Current Valuation
| AD8 Stock | EUR 7.28 0.29 3.83% |
For Arcos Dorados profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arcos Dorados to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arcos Dorados Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arcos Dorados's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arcos Dorados Holdings over time as well as its relative position and ranking within its peers.
Arcos |
Arcos Dorados Holdings Current Valuation vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Arcos Dorados's current stock value. Our valuation model uses many indicators to compare Arcos Dorados value to that of its competitors to determine the firm's financial worth. Arcos Dorados Holdings is number one stock in gross profit category among its peers. It also is the top company in current valuation category among its peers reporting about 8.28 of Current Valuation per Gross Profit. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Arcos Dorados' earnings, one of the primary drivers of an investment's value.Arcos Current Valuation vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Arcos Dorados |
| = | 324.06 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Arcos Dorados |
| = | 2.68 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Arcos Current Valuation vs Competition
Arcos Dorados Holdings is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Restaurants industry is presently estimated at about 31.5 Billion. Arcos Dorados holds roughly 2.68 Billion in current valuation claiming about 9% of equities listed under Restaurants industry.
Arcos Dorados Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Arcos Dorados, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arcos Dorados will eventually generate negative long term returns. The profitability progress is the general direction of Arcos Dorados' change in net profit over the period of time. It can combine multiple indicators of Arcos Dorados, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
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.
Arcos Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Arcos Dorados. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Arcos Dorados position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Arcos Dorados' important profitability drivers and their relationship over time.
Use Arcos Dorados in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arcos Dorados position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arcos Dorados will appreciate offsetting losses from the drop in the long position's value.Arcos Dorados Pair Trading
Arcos Dorados Holdings Pair Trading Analysis
The ability to find closely correlated positions to Arcos Dorados could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arcos Dorados when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arcos Dorados - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arcos Dorados Holdings to buy it.
The correlation of Arcos Dorados is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arcos Dorados moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arcos Dorados Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arcos Dorados can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Arcos Dorados position
In addition to having Arcos Dorados in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Wholesale Thematic Idea Now
Wholesale
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Wholesale theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Wholesale Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Arcos Stock
When determining whether Arcos Dorados Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arcos Dorados' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Arcos Dorados Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Arcos Dorados Holdings Stock:Check out Trending Equities. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project Arcos Dorados' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arcos Dorados Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Arcos Dorados' income statement, its balance sheet, and the statement of cash flows.