MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
261.6 EUR
+0.4 (+0.15%)
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 62 industry peers in the Hotels, Restaurants & Leisure industry. MDO scores excellent on profitability, but there are some minor concerns on its financial health. MDO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- MDO had positive earnings in the past year.
- In the past year MDO had a positive cash flow from operations.
- MDO had positive earnings in each of the past 5 years.
- In the past 5 years MDO always reported a positive cash flow from operatings.
1.2 Ratios
- MDO's Return On Assets of 13.88% is amongst the best of the industry. MDO outperforms 90.00% of its industry peers.
- With an excellent Return On Invested Capital value of 17.77%, MDO belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MDO is significantly above the industry average of 12.01%.
| 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
- With an excellent Profit Margin value of 32.04%, MDO belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
- MDO's Profit Margin has improved in the last couple of years.
- MDO's Operating Margin of 46.12% is amongst the best of the industry. MDO outperforms 98.33% of its industry peers.
- In the last couple of years the Operating Margin of MDO has grown nicely.
- Looking at the Gross Margin, with a value of 57.43%, MDO is in line with its industry, outperforming 60.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of MDO 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
- MDO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, MDO has less shares outstanding
- Compared to 5 years ago, MDO has less shares outstanding
- MDO has about the same debt/assets ratio as last year.
2.2 Solvency
- MDO has an Altman-Z score of 4.79. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of MDO (4.79) is better than 90.00% of its industry peers.
- MDO has a debt to FCF ratio of 5.60. This is a neutral value as MDO would need 5.60 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.60, MDO is in the better half of the industry, outperforming 61.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.79 |
ROIC/WACC2.27
WACC7.83%
2.3 Liquidity
- MDO has a Current Ratio of 1.00. This is a normal value and indicates that MDO is financially healthy and should not expect problems in meeting its short term obligations.
- MDO's Current ratio of 1.00 is in line compared to the rest of the industry. MDO outperforms 58.33% of its industry peers.
- A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
- MDO's Quick ratio of 0.99 is fine compared to the rest of the industry. MDO outperforms 61.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- MDO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
- Measured over the past years, MDO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
- MDO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.26%.
- 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
- MDO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.60% yearly.
- The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y4.49%
EPS Next 2Y6.77%
EPS Next 3Y7.36%
EPS Next 5Y9.6%
Revenue Next Year2.58%
Revenue Next 2Y4.13%
Revenue Next 3Y4.46%
Revenue Next 5Y5.51%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.80, MDO can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of MDO indicates a somewhat cheap valuation: MDO is cheaper than 63.33% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. MDO is around the same levels.
- A Price/Forward Earnings ratio of 22.97 indicates a rather expensive valuation of MDO.
- MDO's Price/Forward Earnings ratio is in line with the industry average.
- MDO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
- MDO's Enterprise Value to EBITDA ratio is in line with the industry average.
- MDO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.67 | ||
| EV/EBITDA | 18.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MDO does not grow enough to justify the current Price/Earnings ratio.
- MDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.75
PEG (5Y)3.15
EPS Next 2Y6.77%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
- MDO has a Yearly Dividend Yield of 2.43%.
- MDO's Dividend Yield is a higher than the industry average which is at 1.36.
- Compared to an average S&P500 Dividend Yield of 1.81, MDO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
- The dividend of MDO is nicely growing with an annual growth rate of 7.43%!
Dividend Growth(5Y)7.43%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- MDO pays out 60.13% of its income as dividend. This is not a sustainable payout ratio.
- MDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.13%
EPS Next 2Y6.77%
EPS Next 3Y7.36%
MCDONALD'S CORP / MDO.DE FAQ
What is the fundamental rating for MDO stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDO.DE.
Can you provide the valuation status for MCDONALD'S CORP?
ChartMill assigns a valuation rating of 3 / 10 to MCDONALD'S CORP (MDO.DE). This can be considered as Overvalued.
How profitable is MCDONALD'S CORP (MDO.DE) stock?
MCDONALD'S CORP (MDO.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for MDO stock?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (MDO.DE) is 25.8 and the Price/Book (PB) ratio is -101.13.
Can you provide the dividend sustainability for MDO stock?
The dividend rating of MCDONALD'S CORP (MDO.DE) is 6 / 10 and the dividend payout ratio is 60.13%.