MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
261.7 EUR
-2.6 (-0.98%)
We assign a fundamental rating of 6 out of 10 to 1MCD. 1MCD was compared to 57 industry peers in the Hotels, Restaurants & Leisure industry. 1MCD has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1MCD is valued expensive at the moment.
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.
1MCD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1MCD (13.88%) is better than 94.00% of its industry peers.
1MCD has a better Return On Invested Capital (17.77%) than 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MCD is significantly above the industry average of 11.27%.
| 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
1MCD has a Profit Margin of 32.04%. This is amongst the best in the industry. 1MCD outperforms 100.00% of its industry peers.
1MCD's Profit Margin has improved in the last couple of years.
The Operating Margin of 1MCD (46.12%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1MCD has grown nicely.
1MCD's Gross Margin of 57.43% is in line compared to the rest of the industry. 1MCD outperforms 56.00% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MCD is creating value.
Compared to 1 year ago, 1MCD has less shares outstanding
1MCD has less shares outstanding than it did 5 years ago.
1MCD has about the same debt/assets ratio as last year.
2.2 Solvency
1MCD has an Altman-Z score of 4.75. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MCD (4.75) is better than 90.00% of its industry peers.
1MCD has a debt to FCF ratio of 5.60. This is a neutral value as 1MCD would need 5.60 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.60, 1MCD is doing good in the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.75 |
ROIC/WACC2.31
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a Current ratio (1.00) which is comparable to the rest of the industry.
1MCD has a Quick Ratio of 1.00. This is a bad value and indicates that 1MCD is not financially healthy enough and could expect problems in meeting its short term obligations.
1MCD's Quick ratio of 0.99 is in line compared to the rest of the industry. 1MCD outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
1MCD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
1MCD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
1MCD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
1MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.94% yearly.
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
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.06% on average over the next years.
EPS Next Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 25.31 indicates a quite expensive valuation of 1MCD.
1MCD's Price/Earnings ratio is a bit cheaper when compared to the industry. 1MCD is cheaper than 64.00% of the companies in the same industry.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.47 indicates a rather expensive valuation of 1MCD.
1MCD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.59. 1MCD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 22.47 |
4.2 Price Multiples
1MCD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1MCD is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.17 | ||
| EV/EBITDA | 17.78 |
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)4.5
PEG (5Y)3.09
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, 1MCD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.65, 1MCD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, 1MCD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
On average, the dividend of 1MCD grows each year by 7.43%, which is quite nice.
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 2Y6.96%
EPS Next 3Y7.48%
BIT:1MCD (11/14/2025, 7:00:00 PM)
261.7
-2.6 (-0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.98%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap186.75B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts72.27
Price Target291.48 (11.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend5.88
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)-0.5%
PT rev (3m)-1.33%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 22.47 | ||
| P/S | 8.19 | ||
| P/FCF | 29.17 | ||
| P/OCF | 20.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.78 |
EPS(TTM)10.34
EY3.95%
EPS(NY)11.65
Fwd EY4.45%
FCF(TTM)8.97
FCFY3.43%
OCF(TTM)12.76
OCFY4.87%
SpS31.95
BVpS-2.63
TBVpS-6.65
PEG (NY)4.5
PEG (5Y)3.09
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 | 4.75 |
F-Score7
WACC7.68%
ROIC/WACC2.31
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 Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y9.23%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
Revenue Next 5Y5.06%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
EBIT Next 5Y9.88%
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 of MCDONALD'S CORP (1MCD.MI) 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.
Can you provide the PE and PB ratios for 1MCD stock?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (1MCD.MI) is 25.31 and the Price/Book (PB) ratio is -99.46.
What is the expected EPS growth for MCDONALD'S CORP (1MCD.MI) stock?
The Earnings per Share (EPS) of MCDONALD'S CORP (1MCD.MI) is expected to grow by 5.63% in the next year.