MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
263.05 EUR
-1 (-0.38%)
We assign a fundamental rating of 6 out of 10 to MDO. MDO was compared to 61 industry peers in the Hotels, Restaurants & Leisure industry. MDO scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, MDO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MDO was profitable.
In the past year MDO had a positive cash flow from operations.
Each year in the past 5 years MDO has been profitable.
Each year in the past 5 years MDO had a positive operating cash flow.
1.2 Ratios
MDO's Return On Assets of 13.88% is amongst the best of the industry. MDO outperforms 89.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.77%, MDO belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDO is significantly above the industry average of 12.33%.
| 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
MDO has a better Profit Margin (32.04%) than 98.28% of its industry peers.
MDO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 46.12%, MDO belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
In the last couple of years the Operating Margin of MDO has grown nicely.
The Gross Margin of MDO (57.43%) is comparable to the rest of the 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
MDO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MDO has remained at the same level compared to a year ago.
2.2 Solvency
MDO has an Altman-Z score of 4.78. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.78, MDO belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
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.
MDO has a Debt to FCF ratio (5.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.78 |
ROIC/WACC2.23
WACC7.97%
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 55.17% of its industry peers.
MDO has a Quick Ratio of 1.00. This is a bad value and indicates that MDO is not financially healthy enough and could expect problems in meeting its short term obligations.
MDO has a Quick ratio (0.99) which is in line with 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%.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
Looking at the last year, MDO 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
Based on estimates for the next years, MDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.60% on average per year.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y9.6%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
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.
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 25.71, which means the current valuation is very expensive for MDO.
MDO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. MDO is around the same levels.
Based on the Price/Forward Earnings ratio of 22.93, the valuation of MDO can be described as rather expensive.
MDO's Price/Forward Earnings is on the same level as the industry average.
MDO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 22.93 |
4.2 Price Multiples
60.34% of the companies in the same industry are cheaper than MDO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MDO is valued a bit more expensive than the industry average as 63.79% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.58 | ||
| EV/EBITDA | 17.98 |
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)5.87
PEG (5Y)3.14
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, MDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.29, MDO pays a bit more dividend than its industry peers.
MDO's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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.
The dividend of MDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
FRA:MDO (1/9/2026, 7:00:00 PM)
263.05
-1 (-0.38%)
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 Cap187.33B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target294.2 (11.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5.82
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years6
Div Non Decr Years6
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)0.33%
PT rev (3m)-0.15%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-2.9%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 22.93 | ||
| P/S | 8.3 | ||
| P/FCF | 29.58 | ||
| P/OCF | 20.8 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.98 |
EPS(TTM)10.23
EY3.89%
EPS(NY)11.47
Fwd EY4.36%
FCF(TTM)8.89
FCFY3.38%
OCF(TTM)12.65
OCFY4.81%
SpS31.68
BVpS-2.61
TBVpS-6.6
PEG (NY)5.87
PEG (5Y)3.14
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 | 4.78 |
F-Score7
WACC7.97%
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 5Y9.6%
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 5Y5.51%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.71%
EBIT Next 3Y11.38%
EBIT Next 5Y10.59%
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 / 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 2 / 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 25.71 and the Price/Book (PB) ratio is -100.83.
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%.