Examining Arcos Dorados Holdings Inc (ARCO)’s cash flow and debt position

In the latest session, Arcos Dorados Holdings Inc (NYSE: ARCO) closed at $10.77 down -1.73% from its previous closing price of $10.96. In other words, the price has decreased by -$0.19 from its previous closing price. On the day, 1323724 shares were traded.

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Ratios:

For a deeper understanding of Arcos Dorados Holdings Inc’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 9.19 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 232.62. For the most recent quarter (mrq), Quick Ratio is recorded 0.71 and its Current Ratio is at 0.77. In the meantime, Its Debt-to-Equity ratio is 3.33 whereas as Long-Term Debt/Eq ratio is at 3.07.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Jefferies on December 01, 2023, initiated with a Buy rating and assigned the stock a target price of $15.

On September 27, 2022, Barclays started tracking the stock assigning a Overweight rating and target price of $9.

HSBC Securities Downgraded its Buy to Hold on April 04, 2022, while the target price for the stock was maintained at $8.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, ARCO now has a Market Capitalization of 2.27B and an Enterprise Value of 3.63B. As of this moment, Arcos’s Price-to-Earnings (P/E) ratio for their current fiscal year is 12.60, and their Forward P/E ratio for the next fiscal year is 10.56. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.30. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.52 while its Price-to-Book (P/B) ratio in mrq is 5.14. Its current Enterprise Value per Revenue stands at 0.87 whereas that against EBITDA is 8.01.

Stock Price History:

Over the past 52 weeks, ARCO has reached a high of $13.20, while it has fallen to a 52-week low of $7.01. The 50-Day Moving Average of the stock is 11.77, while the 200-Day Moving Average is calculated to be 10.90.

Shares Statistics:

For the past three months, ARCO has traded an average of 1.03M shares per day and 1.18M over the past ten days. A total of 210.59M shares are outstanding, with a floating share count of 124.05M. Insiders hold about 41.09% of the company’s shares, while institutions hold 41.12% stake in the company. Shares short for ARCO as of Mar 15, 2024 were 3.33M with a Short Ratio of 3.23, compared to 3.04M on Feb 15, 2024. Therefore, it implies a Short% of Shares Outstanding of 1.58% and a Short% of Float of 3.32%.

Dividends & Splits

According to the company, the forward annual dividend rate for ARCO is 0.20, from 0.19 in the trailing year. Against a Trailing Annual Dividend Yield of 1.73%, it implies a Forward Annual Dividend Yield of 2.18%. The current Payout Ratio is 22.08% for ARCO, which recently paid a dividend on Dec 27, 2024 with an ex-dividend date of Jun 24, 2024. Stock splits for the company last occurred on Jul 13, 2021 when the company split stock in a 71:70 ratio.

Earnings Estimates

There are 1 different market analysts currently analyzing its stock. On average, analysts expect EPS of $0.17 for the current quarter, with a high estimate of $0.17 and a low estimate of $0.17, while EPS last year was $0.18. The consensus estimate for the next quarter is $0.19, with high estimates of $0.19 and low estimates of $0.19.

Analysts are recommending an EPS of between $0.96 and $0.87 for the fiscal current year, implying an average EPS of $0.91. EPS for the following year is $1, with 4 analysts recommending between $1.04 and $0.96.

Revenue Estimates

A total of 1 analysts believe the company’s revenue will be $1.02B this quarter.It ranges from a high estimate of $1.02B to a low estimate of $1.02B. As of the current estimate, Arcos Dorados Holdings Inc’s year-ago sales were $990.79M, an estimated increase of 3.00% from the year-ago figure. For the next quarter, 1 analysts are estimating revenue of $1.07B, an increase of 2.40% less than the figure of $3.00% in the same quarter last year. There is a high estimate of $1.07B for the next quarter, whereas the lowest estimate is $1.07B.

A total of 4 analysts have provided revenue estimates for ARCO’s current fiscal year. The highest revenue estimate was $4.72B, while the lowest revenue estimate was $4.52B, resulting in an average revenue estimate of $4.61B. In the same quarter a year ago, actual revenue was $4.33B, up 6.50% from the average estimate. Based on 4 analysts’ estimates, the company’s revenue will be $4.95B in the next fiscal year. The high estimate is $5.12B and the low estimate is $4.75B. The average revenue growth estimate for next year is up 7.30% from the average revenue estimate for this year.

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