Arcos Dorados Holdings Inc. (ARCO) is a Restaurants company in the Consumer Cyclical sector, currently trading at $8.72. It has a SharesGrow Score of 65/100, indicating a above average investment profile with 4 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of ARCO = $21.48 (+146.3% from the current price, the stock appears undervalued). Analyst consensus target is ARCO = $12 (+39.3% upside).
Valuation: ARCO trades at a trailing Price-to-Earnings (P/E) of 8.4 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.49.
Financials: revenue is $4.7B, +9.2%/yr average growth. Net income is $212M, growing at +17.9%/yr. Net profit margin is 4.5% (thin). Gross margin is 12.3% (-59.4 pp trend).
Balance sheet: total debt is $2.2B against $770M equity (Debt-to-Equity (D/E) ratio 2.91, leveraged). Current ratio is 1.03 (adequate). Debt-to-assets is 57.8%. Total assets: $3.9B.
Analyst outlook: 8 / 12 analysts rate ARCO as buy (67%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 97/100 (Pass), Growth 73/100 (Pass), Past 100/100 (Pass), Health 50/100 (Partial), Moat 31/100 (Fail), Future 73/100 (Pass), Income 30/100 (Fail).
