Arcos Dorados EBITDA vs. Price To Sales

ARCO Stock  USD 7.90  0.15  1.94%   
Based on Arcos Dorados' profitability indicators, Arcos Dorados Holdings is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in January. Profitability indicators assess Arcos Dorados' ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
459.7 M
Current Value
269.6 M
Quarterly Volatility
118.7 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Arcos Dorados' Price To Sales Ratio is very stable compared to the past year. As of the 14th of December 2024, Days Sales Outstanding is likely to grow to 18.39, while Operating Cash Flow Sales Ratio is likely to drop 0.05. At this time, Arcos Dorados' Interest Income is very stable compared to the past year. As of the 14th of December 2024, Net Income Per Share is likely to grow to 0.90, while Accumulated Other Comprehensive Income is likely to drop (591.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.1378
Fairly Up
Pretty Stable
For Arcos Dorados profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arcos Dorados to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arcos Dorados Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arcos Dorados's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arcos Dorados Holdings over time as well as its relative position and ranking within its peers.
  
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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arcos Dorados. If investors know Arcos will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arcos Dorados listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.08)
Earnings Share
0.7
Revenue Per Share
21.328
Quarterly Revenue Growth
0.068
Return On Assets
0.0693
The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arcos Dorados' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arcos Dorados is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Arcos Dorados Holdings Price To Sales vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Arcos Dorados's current stock value. Our valuation model uses many indicators to compare Arcos Dorados value to that of its competitors to determine the firm's financial worth.
Arcos Dorados Holdings is rated second in ebitda category among its peers. It is rated below average in price to sales category among its peers . The ratio of EBITDA to Price To Sales for Arcos Dorados Holdings is about  1,211,863,960 . At this time, Arcos Dorados' EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Arcos Dorados' earnings, one of the primary drivers of an investment's value.

Arcos Price To Sales vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Arcos Dorados

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
459.66 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Arcos Dorados

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.38 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Arcos Price To Sales Comparison

Arcos Dorados is currently under evaluation in price to sales category among its peers.

Arcos Dorados Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Arcos Dorados, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arcos Dorados will eventually generate negative long term returns. The profitability progress is the general direction of Arcos Dorados' change in net profit over the period of time. It can combine multiple indicators of Arcos Dorados, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-563.1 M-591.2 M
Operating Income312.1 M327.8 M
Income Before Tax278.1 M292 M
Total Other Income Expense Net-34 M-35.7 M
Net Income Applicable To Common Shares126.3 M132.6 M
Net Income181.3 M190.3 M
Income Tax Expense95.7 M100.5 M
Net Income From Continuing Ops181 M190 M
Interest Income35 M52.2 M
Net Interest Income-28 M-29.4 M
Change To Netincome-3.9 M-3.7 M
Net Income Per Share 0.86  0.90 
Income Quality 2.11  1.63 
Net Income Per E B T 0.65  0.90 

Arcos Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Arcos Dorados. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Arcos Dorados position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Arcos Dorados' important profitability drivers and their relationship over time.

Use Arcos Dorados in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arcos Dorados position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arcos Dorados will appreciate offsetting losses from the drop in the long position's value.

Arcos Dorados Pair Trading

Arcos Dorados Holdings Pair Trading Analysis

The ability to find closely correlated positions to Arcos Dorados could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arcos Dorados when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arcos Dorados - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arcos Dorados Holdings to buy it.
The correlation of Arcos Dorados is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arcos Dorados moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arcos Dorados Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arcos Dorados can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Arcos Dorados position

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When determining whether Arcos Dorados Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arcos Dorados' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Arcos Dorados Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Arcos Dorados Holdings Stock:
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You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project Arcos Dorados' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arcos Dorados Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Arcos Dorados' income statement, its balance sheet, and the statement of cash flows.
Potential Arcos Dorados investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Arcos Dorados investors may work on each financial statement separately, they are all related. The changes in Arcos Dorados's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Arcos Dorados's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.