ARCO
Arcos Dorados·NYSE
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6.76 / 10
Outperform
ARCO's fundamental evaluation is positive (6.8/10). Strengths include strong Cash-MV and Asset-MV indicators, while concerns lie in Net cash flow from operating activities (YoY growth rate %) and PB-ROE. Historical back-tests show moderate returns and confidence levels for each factor, e.g., Asset-MV yields 3.55% monthly return with 48.6% confidence. This constructive view implies the company's balance sheet and cash generation are solid, but profitability metrics need monitoring.
Analysis Checks(4/10)
Revenue-MV
Value-0.26
Score3/3
Weight35.07%
1M Return3.16%
Value-0.26
Score3/3
Weight35.07%
1M Return3.16%
Basic earnings per share (YoY growth rate %)
Value106.98
Score1/3
Weight-2.16%
1M Return-0.24%
Value106.98
Score1/3
Weight-2.16%
1M Return-0.24%
Net cash flow from operating activities (YoY growth rate %)
Value2.58
Score0/3
Weight-10.48%
1M Return-1.27%
Value2.58
Score0/3
Weight-10.48%
1M Return-1.27%
Diluted earnings per share (YoY growth rate %)
Value106.98
Score1/3
Weight0.52%
1M Return0.06%
Value106.98
Score1/3
Weight0.52%
1M Return0.06%
Net profit attributable to parent company shareholders (YoY growth rate %)
Value106.90
Score0/3
Weight-6.35%
1M Return-0.71%
Value106.90
Score0/3
Weight-6.35%
1M Return-0.71%
PB-ROE
Value1.24
Score1/3
Weight2.85%
1M Return0.29%
Value1.24
Score1/3
Weight2.85%
1M Return0.29%
Total profit (YoY growth rate %)
Value45.64
Score0/3
Weight-3.85%
1M Return-0.44%
Value45.64
Score0/3
Weight-3.85%
1M Return-0.44%
Interest coverage ratio (EBIT / Interest expense) (%)
Value31.49
Score2/3
Weight20.29%
1M Return1.98%
Value31.49
Score2/3
Weight20.29%
1M Return1.98%
Asset-MV
Value-0.50
Score2/3
Weight34.21%
1M Return3.55%
Value-0.50
Score2/3
Weight34.21%
1M Return3.55%
Cash-MV
Value-0.07
Score2/3
Weight29.91%
1M Return3.23%
Value-0.07
Score2/3
Weight29.91%
1M Return3.23%
Revenue-MV
Value-0.26
Score3/3
Weight35.07%
1M Return3.16%
Value-0.26
Score3/3
Weight35.07%
1M Return3.16%
PB-ROE
Value1.24
Score1/3
Weight2.85%
1M Return0.29%
Value1.24
Score1/3
Weight2.85%
1M Return0.29%
Basic earnings per share (YoY growth rate %)
Value106.98
Score1/3
Weight-2.16%
1M Return-0.24%
Value106.98
Score1/3
Weight-2.16%
1M Return-0.24%
Total profit (YoY growth rate %)
Value45.64
Score0/3
Weight-3.85%
1M Return-0.44%
Value45.64
Score0/3
Weight-3.85%
1M Return-0.44%
Net cash flow from operating activities (YoY growth rate %)
Value2.58
Score0/3
Weight-10.48%
1M Return-1.27%
Value2.58
Score0/3
Weight-10.48%
1M Return-1.27%
Interest coverage ratio (EBIT / Interest expense) (%)
Value31.49
Score2/3
Weight20.29%
1M Return1.98%
Value31.49
Score2/3
Weight20.29%
1M Return1.98%
Diluted earnings per share (YoY growth rate %)
Value106.98
Score1/3
Weight0.52%
1M Return0.06%
Value106.98
Score1/3
Weight0.52%
1M Return0.06%
Asset-MV
Value-0.50
Score2/3
Weight34.21%
1M Return3.55%
Value-0.50
Score2/3
Weight34.21%
1M Return3.55%
Net profit attributable to parent company shareholders (YoY growth rate %)
Value106.90
Score0/3
Weight-6.35%
1M Return-0.71%
Value106.90
Score0/3
Weight-6.35%
1M Return-0.71%
Cash-MV
Value-0.07
Score2/3
Weight29.91%
1M Return3.23%
Value-0.07
Score2/3
Weight29.91%
1M Return3.23%
Is ARCO undervalued or overvalued?
- ARCO scores 6.76/10 on fundamentals and holds a Discounted valuation at present. Backed by its 29.78% ROE, 5.40% net margin, 13.84 P/E ratio, 2.41 P/B ratio, and 69.57% earnings growth, these metrics solidify its Outperform investment rating.
