A View of Arcos Dorados Holdings Inc (ARCO) Stock’s Fundamentals and Valuations

Arcos Dorados Holdings Inc [ARCO] stock prices are down -2.14% to $11.00 at the moment. In order to assess the stock’s recent performance, you can check whether its short-term value is rising or falling. The ARCO shares have gain 3.48% over the last week, with a monthly amount drifted -7.49%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Arcos Dorados Holdings Inc [NYSE: ARCO] stock has seen the most recent analyst activity on December 01, 2023, when Jefferies initiated its Buy rating and assigned the stock a price target of $15. Previously, Barclays started tracking the stock with Overweight rating on September 27, 2022, and set its price target to $9. On April 04, 2022, downgrade downgraded it’s rating to Hold but maintained its price target of $8 on the stock. BofA Securities upgraded its rating to a Buy and increased its price target to $10 on March 24, 2022. Credit Suisse upgraded its rating to a Outperform but $9.50 remained the price target by the analyst firm on February 23, 2022. Goldman upgraded its rating to Buy for this stock on January 19, 2022, and upped its price target to $7. In a note dated September 20, 2021, BofA Securities downgraded an Neutral rating on this stock.

The stock price of Arcos Dorados Holdings Inc [ARCO] has been fluctuating between $7.41 and $13.20 over the past year. Currently, Wall Street analysts expect the stock to reach $10 within the next 12 months. Arcos Dorados Holdings Inc [NYSE: ARCO] shares were valued at $11.00 at the most recent close of the market. An investor can expect a potential drop of -9.09% based on the average ARCO price forecast.

Analyzing the ARCO fundamentals

The Arcos Dorados Holdings Inc [NYSE:ARCO] reported sales of 4.33B for trailing twelve months, representing a surge of 15.40%. Gross Profit Margin for this corporation currently stands at 0.14% with Operating Profit Margin at 0.07%, Pretax Profit Margin comes in at 0.07%, and Net Profit Margin reading is 0.04%. To continue investigating profitability, this company’s Return on Assets is posted at 0.06, Equity is 0.47 and Total Capital is 0.14. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of3.66.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 10.86 points at the first support level, and at 10.72 for the second support level. However, for the 1st resistance point, the stock is sitting at 11.17, and for the 2nd resistance point, it is at 11.34.

Ratios To Look Out For

It’s worth pointing out that Arcos Dorados Holdings Inc [NYSE:ARCO]’s Current Ratio is 0.77. In addition, the Quick Ratio stands at 0.71 and the Cash Ratio stands at 0.21. Considering the valuation of this stock, the price to sales ratio is 0.53, the price to book ratio is 5.25 and price to earnings (TTM) ratio is 12.87.

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