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ARCO vs PSNY

ARCO
Arcos Dorados Holdings Inc.
BULLISH
Price
$7.70
Market Cap
$1.62B
Sector
Consumer Cyclical
AI Confidence
87%
PSNY
Polestar Automotive Holding UK PLC
BEARISH
Price
$18.06
Market Cap
$1.65B
Sector
Consumer Cyclical
AI Confidence
95%

Valuation

P/E Ratio
ARCO
6.58
PSNY
--
Forward P/E
ARCO
11.27
PSNY
-2.26
P/B Ratio
ARCO
2.18
PSNY
-0.3
P/S Ratio
ARCO
0.36
PSNY
0.65
EV/EBITDA
ARCO
6.26
PSNY
-28.48

Profitability

Gross Margin
ARCO
12.39%
PSNY
-32.68%
Operating Margin
ARCO
12.34%
PSNY
-28.66%
Profit Margin
ARCO
5.38%
PSNY
-105.95%
ROE
ARCO
39.03%
PSNY
--
ROA
ARCO
6.87%
PSNY
-28.0%

Growth

Revenue Growth
ARCO
5.2%
PSNY
26.1%
Earnings Growth
ARCO
327.2%
PSNY
--

Financial Health

Debt/Equity
ARCO
2.76
PSNY
--
Current Ratio
ARCO
0.89
PSNY
0.43
Quick Ratio
ARCO
0.65
PSNY
0.21

Dividends

Dividend Yield
ARCO
3.12%
PSNY
--
Payout Ratio
ARCO
20.51%
PSNY
0.0%

AI Verdict

ARCO BULLISH

ARCO's Piotroski F-Score of 4 indicates a borderline stable financial health, but the company exhibits strong profitability and exceptional earnings growth, with a 327% YoY EPS surge and a 151% average earnings surprise over the last four quarters. Despite a high debt/equity ratio of 2.76 and weak liquidity (current ratio 0.89), the stock trades at a deeply discounted valuation relative to its intrinsic value and Graham Number, suggesting significant undervaluation. The 3.12% dividend yield with a conservative payout ratio of 20.5% adds defensive appeal, while analyst target prices imply upside potential. The combination of high growth, low valuation, and improving earnings momentum supports a bullish stance.

Strengths
Exceptional earnings growth (327% YoY) and consistent beat rates in recent quarters
Strong ROE of 39.03% and high gross/operating margins for the restaurant sector
Significantly undervalued relative to intrinsic value ($34.52) and Graham Number ($9.65)
Risks
Piotroski F-Score of 4 indicates weak financial health, with only 4 out of 9 criteria met
High debt/equity ratio of 2.76 raises leverage concerns despite strong cash flow
Current ratio of 0.89 and quick ratio of 0.65 suggest liquidity strain
PSNY BEARISH

PSNY exhibits severe financial distress, anchored by a weak Piotroski F-Score of 3/9 and a critical liquidity crisis evidenced by a Current Ratio of 0.43. The company is operating with negative equity (Price/Book: -0.30) and catastrophic profit margins of -105.95%, indicating that costs are vastly outpacing revenue generation. While YoY revenue growth remains positive at 26.10%, the accelerating EPS decline (-416.7% Q/Q) and a 0/100 technical trend signal a high risk of insolvency or significant shareholder dilution.

Strengths
Positive YoY revenue growth of 26.10%
Low Price/Sales ratio (0.65) relative to sector growth stocks
Analyst target price ($22.50) suggests potential upside if liquidity is solved
Risks
Negative Book Value (P/B -0.30) indicating liabilities exceed assets
Severe liquidity shortage with a Quick Ratio of 0.21
Extreme operational inefficiency with -105.95% profit margins

Compare Another Pair

ARCO vs PSNY: Head-to-Head Comparison

This page compares Arcos Dorados Holdings Inc. (ARCO) and Polestar Automotive Holding UK PLC (PSNY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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