MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
260 EUR
-0.5 (-0.19%)
We assign a fundamental rating of 6 out of 10 to MDO. MDO was compared to 58 industry peers in the Hotels, Restaurants & Leisure industry. While MDO has a great profitability rating, 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.
MDO had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 13.88%, MDO belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
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.
MDO had an Average Return On Invested Capital over the past 3 years of 18.38%. This 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
The Profit Margin of MDO (32.04%) is better than 98.28% of its industry peers.
In the last couple of years the Profit Margin of MDO has grown nicely.
The Operating Margin of MDO (46.12%) is better than 98.28% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
MDO has a Gross Margin (57.43%) which is in line with its industry peers.
MDO's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MDO is creating value.
MDO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MDO has been reduced compared to 5 years ago.
MDO has about the same debt/assets ratio as last year.
2.2 Solvency
MDO has an Altman-Z score of 4.77. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.77, MDO belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
The Debt to FCF ratio of MDO is 5.60, which is a neutral value as it means it would take MDO, 5.60 years of fcf income to pay off all of its debts.
MDO's Debt to FCF ratio of 5.60 is in line compared to the rest of the industry. MDO outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.77 |
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 has a Current ratio of 1.00. This is comparable to the rest of the industry: MDO outperforms 55.17% of its industry peers.
A Quick Ratio of 0.99 indicates that MDO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, MDO is in line with its industry, outperforming 58.62% 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.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
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
Based on estimates for the next years, MDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
MDO 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.
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 25.52, MDO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MDO is on the same level as its industry peers.
MDO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 22.74, the valuation of MDO can be described as rather expensive.
MDO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, MDO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 22.74 |
4.2 Price Multiples
MDO's Enterprise Value to EBITDA ratio is in line with the industry average.
MDO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. MDO is more expensive than 63.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.34 | ||
| EV/EBITDA | 17.89 |
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)5.82
PEG (5Y)3.11
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, MDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.26, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
On average, the dividend of MDO grows each year by 7.43%, which is quite nice.
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 (1/8/2026, 1:14:26 PM)
260
-0.5 (-0.19%)
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 Cap185.16B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target294.2 (13.15%)
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 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)0.85%
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 | 25.52 | ||
| Fwd PE | 22.74 | ||
| P/S | 8.24 | ||
| P/FCF | 29.34 | ||
| P/OCF | 20.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.89 |
EPS(TTM)10.19
EY3.92%
EPS(NY)11.43
Fwd EY4.4%
FCF(TTM)8.86
FCFY3.41%
OCF(TTM)12.6
OCFY4.85%
SpS31.57
BVpS-2.6
TBVpS-6.57
PEG (NY)5.82
PEG (5Y)3.11
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 | 4.77 |
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 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 / 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 25.52 and the Price/Book (PB) ratio is -100.02.
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%.