MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
257.15 EUR
-0.35 (-0.14%)
Overall 1MCD gets a fundamental rating of 6 out of 10. We evaluated 1MCD against 58 industry peers in the Hotels, Restaurants & Leisure industry. While 1MCD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1MCD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MCD was profitable.
1MCD had a positive operating cash flow in the past year.
In the past 5 years 1MCD has always been profitable.
In the past 5 years 1MCD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1MCD (13.88%) is better than 91.38% of its industry peers.
The Return On Invested Capital of 1MCD (17.77%) is better than 84.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCD is significantly above the industry average of 13.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | N/A | ||
| ROIC | 17.77% |
ROA(3y)14.08%
ROA(5y)13.05%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.38%
ROIC(5y)16.68%
1.3 Margins
Looking at the Profit Margin, with a value of 32.04%, 1MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MCD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.12%, 1MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MCD has grown nicely.
1MCD's Gross Margin of 57.43% is fine compared to the rest of the industry. 1MCD outperforms 60.34% of its industry peers.
In the last couple of years the Gross Margin of 1MCD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.12% | ||
| PM (TTM) | 32.04% | ||
| GM | 57.43% |
OM growth 3Y2.46%
OM growth 5Y1.77%
PM growth 3Y-0.79%
PM growth 5Y2.38%
GM growth 3Y1.56%
GM growth 5Y1.64%
2. Health
2.1 Basic Checks
1MCD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1MCD has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MCD has less shares outstanding
Compared to 1 year ago, 1MCD has about the same debt to assets ratio.
2.2 Solvency
1MCD has an Altman-Z score of 4.74. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.74, 1MCD belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
The Debt to FCF ratio of 1MCD is 5.60, which is a neutral value as it means it would take 1MCD, 5.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.60, 1MCD perfoms like the industry average, outperforming 56.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.74 |
ROIC/WACC2.23
WACC7.98%
2.3 Liquidity
1MCD has a Current Ratio of 1.00. This is a normal value and indicates that 1MCD is financially healthy and should not expect problems in meeting its short term obligations.
1MCD has a Current ratio of 1.00. This is comparable to the rest of the industry: 1MCD outperforms 56.90% of its industry peers.
A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, 1MCD is in the better half of the industry, outperforming 60.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
Measured over the past years, 1MCD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
Looking at the last year, 1MCD shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
The Revenue has been growing slightly by 3.94% on average over the past years.
EPS 1Y (TTM)0.51%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-0.31%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
3.2 Future
1MCD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
1MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y10.93%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
Revenue Next 5Y5.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.21, which means the current valuation is very expensive for 1MCD.
Based on the Price/Earnings ratio, 1MCD is valued a bit cheaper than 60.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. 1MCD is around the same levels.
Based on the Price/Forward Earnings ratio of 22.48, the valuation of 1MCD can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MCD.
The average S&P500 Price/Forward Earnings ratio is at 23.88. 1MCD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 22.48 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1MCD is valued a bit more expensive than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.99 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MCD does not grow enough to justify the current Price/Earnings ratio.
1MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.75
PEG (5Y)3.07
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
1MCD has a Yearly Dividend Yield of 2.43%.
Compared to an average industry Dividend Yield of 1.26, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, 1MCD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of 1MCD is nicely growing with an annual growth rate of 7.43%!
Dividend Growth(5Y)7.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
60.13% of the earnings are spent on dividend by 1MCD. This is not a sustainable payout ratio.
The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
BIT:1MCD (1/5/2026, 7:00:00 PM)
257.15
-0.35 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.96%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap183.13B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target292.03 (13.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend5.76
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.88%
Min EPS beat(2)-4.16%
Max EPS beat(2)0.41%
EPS beat(4)1
Avg EPS beat(4)-1.35%
Min EPS beat(4)-4.16%
Max EPS beat(4)0.41%
EPS beat(8)2
Avg EPS beat(8)-0.99%
EPS beat(12)6
Avg EPS beat(12)2.17%
EPS beat(16)9
Avg EPS beat(16)1.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)0.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.04%
PT rev (1m)0.19%
PT rev (3m)-0.75%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 22.48 | ||
| P/S | 8.14 | ||
| P/FCF | 28.99 | ||
| P/OCF | 20.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.68 |
EPS(TTM)10.2
EY3.97%
EPS(NY)11.44
Fwd EY4.45%
FCF(TTM)8.87
FCFY3.45%
OCF(TTM)12.61
OCFY4.9%
SpS31.59
BVpS-2.6
TBVpS-6.58
PEG (NY)5.75
PEG (5Y)3.07
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | N/A | ||
| ROCE | 22.22% | ||
| ROIC | 17.77% | ||
| ROICexc | 18.59% | ||
| ROICexgc | 19.85% | ||
| OM | 46.12% | ||
| PM (TTM) | 32.04% | ||
| GM | 57.43% | ||
| FCFM | 28.08% |
ROA(3y)14.08%
ROA(5y)13.05%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.38%
ROIC(5y)16.68%
ROICexc(3y)19.5%
ROICexc(5y)17.88%
ROICexgc(3y)21.29%
ROICexgc(5y)19.49%
ROCE(3y)23.04%
ROCE(5y)20.89%
ROICexgc growth 3Y2.6%
ROICexgc growth 5Y2.93%
ROICexc growth 3Y2.55%
ROICexc growth 5Y2.53%
OM growth 3Y2.46%
OM growth 5Y1.77%
PM growth 3Y-0.79%
PM growth 5Y2.38%
GM growth 3Y1.56%
GM growth 5Y1.64%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 143.06% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.39% | ||
| Profit Quality | 87.63% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 4.74 |
F-Score7
WACC7.98%
ROIC/WACC2.23
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.21%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-0.31%
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y10.93%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
Revenue Next 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.71%
EBIT Next 3Y11.38%
EBIT Next 5Y11.55%
FCF growth 1Y2.48%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y12.47%
OCF growth 3Y1.11%
OCF growth 5Y3.07%
MCDONALD'S CORP / 1MCD.MI FAQ
What is the fundamental rating for 1MCD stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MCD.MI.
What is the valuation status for 1MCD stock?
ChartMill assigns a valuation rating of 2 / 10 to MCDONALD'S CORP (1MCD.MI). This can be considered as Overvalued.
What is the profitability of 1MCD stock?
MCDONALD'S CORP (1MCD.MI) has a profitability rating of 8 / 10.
What is the valuation of MCDONALD'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (1MCD.MI) is 25.21 and the Price/Book (PB) ratio is -98.85.
What is the earnings growth outlook for MCDONALD'S CORP?
The Earnings per Share (EPS) of MCDONALD'S CORP (1MCD.MI) is expected to grow by 4.38% in the next year.