MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
268.5 EUR
-1.65 (-0.61%)
Overall MDO gets a fundamental rating of 5 out of 10. We evaluated MDO against 57 industry peers in the Hotels, Restaurants & Leisure industry. While MDO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MDO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years MDO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MDO (13.88%) is better than 89.47% of its industry peers.
The Return On Invested Capital of MDO (17.77%) is better than 84.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDO 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
The Profit Margin of MDO (32.04%) is better than 98.25% of its industry peers.
In the last couple of years the Profit Margin of MDO has grown nicely.
Looking at the Operating Margin, with a value of 46.12%, MDO belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
In the last couple of years the Operating Margin of MDO has grown nicely.
MDO has a better Gross Margin (57.43%) than 63.16% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MDO is creating value.
MDO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MDO has less shares outstanding
MDO has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 4.81 indicates that MDO is not in any danger for bankruptcy at the moment.
MDO's Altman-Z score of 4.81 is amongst the best of the industry. MDO outperforms 91.23% 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.
With a Debt to FCF ratio value of 5.60, MDO perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.81 |
ROIC/WACC2.32
WACC7.67%
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.
Looking at the Current ratio, with a value of 1.00, MDO is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
The Quick ratio of MDO (0.99) is better than 61.40% 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.
The Revenue has been growing slightly by 1.26% in the past year.
MDO 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 10.93% on average over the next years. This is quite good.
Based on estimates for the next years, MDO will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y5.63%
EPS Next 2Y6.96%
EPS Next 3Y7.48%
EPS Next 5Y10.93%
Revenue Next Year2.81%
Revenue Next 2Y4.22%
Revenue Next 3Y4.63%
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.
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
Based on the Price/Earnings ratio of 26.07, the valuation of MDO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MDO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.31, MDO is valued at the same level.
The Price/Forward Earnings ratio is 23.14, which indicates a rather expensive current valuation of MDO.
MDO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, MDO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 23.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDO.
63.16% of the companies in the same industry are cheaper than MDO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 18.2 |
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)4.63
PEG (5Y)3.18
EPS Next 2Y6.96%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, MDO has a reasonable but not impressive dividend return.
MDO's Dividend Yield is a higher than the industry average which is at 2.65.
MDO's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 2Y6.96%
EPS Next 3Y7.48%
FRA:MDO (11/28/2025, 7:00:00 PM)
268.5
-1.65 (-0.61%)
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 Cap191.21B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts72.27
Price Target291.71 (8.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend5.86
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)-1%
PT rev (3m)-1.88%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 23.14 | ||
| P/S | 8.42 | ||
| P/FCF | 29.99 | ||
| P/OCF | 21.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.2 |
EPS(TTM)10.3
EY3.84%
EPS(NY)11.6
Fwd EY4.32%
FCF(TTM)8.95
FCFY3.33%
OCF(TTM)12.73
OCFY4.74%
SpS31.89
BVpS-2.63
TBVpS-6.64
PEG (NY)4.63
PEG (5Y)3.18
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 | 4.81 |
F-Score7
WACC7.67%
ROIC/WACC2.32
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 5Y10.93%
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 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.23%
EBIT Next 3Y11.93%
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 / MDO.DE FAQ
What is the fundamental rating for MDO stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDO.DE.
What is the valuation status for MDO stock?
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.
What is the valuation of MCDONALD'S CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCDONALD'S CORP (MDO.DE) is 26.07 and the Price/Book (PB) ratio is -102.25.
Is the dividend of MCDONALD'S CORP sustainable?
The dividend rating of MCDONALD'S CORP (MDO.DE) is 5 / 10 and the dividend payout ratio is 60.13%.