The stock of Arcos Dorados Holdings Inc. (NYSE:ARCO) increased by $0.11 on Tuesday to finish at $10.21, up 1.09 percent. The last five days have seen an average of 1,410,580 shares of common stock traded. 23 times new highs were reached in the current year, with a gain of $1.85. The average number of shares traded over the last 20 days was 1,045,475, while the average volume over the last 50 days totaled 1,416,178.
ARCO stock dropped -9.65% since last month. On 08/18/23, the company’s shares reached a one-month low of $9.42. The stock touched a high of $11.47 on 07/27/23, after rallying from a low of $6.64 in 52 weeks. The price of ARCO stock has risen by 22.13% or $1.85 this year, reaching a new high 23 times. Still, the stock price is down -10.99% from the 52-week high.
Valuation Metrics
Arcos Dorados Holdings Inc. (ARCO) has a trailing price-to-earnings (P/E) ratio of 12.88. Beta for the stock is 1.07. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.54, the price-to-book (PB) ratio of 5.32, and the price-to-cash flow ratio of 58.81.
Company paid $0.05 per share in dividends, remained unchanged from $0.05 last year.
Financial Health
For the three months ended June 29, Arcos Dorados Holdings Inc.’s quick ratio was 0.70, while its current ratio was 0.80, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.79, and the total debt to equity ratio is 1.84. As far as profitability goes, gross margin for the trailing twelve months is 13.90% percent. Arcos Dorados Holdings Inc.’s EBITDA margin for the year ended June 29 was 10.61%, whereas its operating margin stood at 7.50% for the same period. Based on annual data, it had gross profit of $492.61 million and revenue of $3.62 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ARCO’s return on assets (ROA) during the last 12 months has been 6.30%. There was a 17.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 50.50%.
Earnings Surprise
According to Arcos Dorados Holdings Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.62 billion, while revenues rose by 26.5% to $0.0. It was predicted that Arcos Dorados Holdings Inc.’s quarterly earnings would be $0.13, but it ended up being $0.14, beating the consensus by -7.10%. EBITDA was $109.89 million for the quarter. At the end of Arcos Dorados Holdings Inc.’s most recent quarter ended June 29, its liabilities totaled 2.4 billion, while its total debt was $1.67 billion.
Technical Picture
Here’s a quick look at Arcos Dorados Holdings Inc.’s (ARCO) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 46.19%, suggesting the stock is Neutral, with a 49.00% historical volatility rate.
The stochastic %K and %D were 40.92% and 39.92% respectively, while the average true range (ATR) was 0.31. Based on the 14-day stochastic reading of 47.31%, the RSI (14) reading is 46.37%. On the 9-day MACD Oscillator, the stock is at 0.06, and the 14-day reading is at -0.22.
Analyst Ratings
In its analyst report released on September 27, 2022, Barclays began covering Arcos Dorados Holdings Inc. (NYSE: ARCO). The stock was rated as an Overweight by the brokerage firm. Analysts have assigned Arcos Dorados Holdings Inc. (ARCO) an Buy rating. ARCO is a stock that is recommended for selling by 0 brokerage firms, while 0 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 6 others recommend it as a buy.
What is ARCO’s price target for the next 12 months?
The current consensus forecast for the stock is between $12.00 and $15.00, with a median target price of $13.00. In analyzing these forecasts, the average price target given by analysts for Arcos Dorados Holdings Inc. (ARCO) is $12.96.
