MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
FRA:MDO - Deutsche Boerse Ag - US5801351017 - Common Stock - Currency: EUR
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Hotels, Restaurants & Leisure industry. MDO has an excellent profitability rating, 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
MDO had positive earnings in the past year.
MDO had a positive operating cash flow in the past year.
In the past 5 years MDO has always been profitable.
In the past 5 years MDO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.90%, MDO belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
MDO has a better Return On Invested Capital (18.47%) than 92.73% of its industry peers.
MDO had an Average Return On Invested Capital over the past 3 years of 18.38%. This is significantly above the industry average of 11.55%.
The 3 year average ROIC (18.38%) for MDO is below the current ROIC(18.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.9% | ||
| ROE | N/A | ||
| ROIC | 18.47% |
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 (31.72%) than 98.18% of its industry peers.
MDO's Profit Margin has improved in the last couple of years.
MDO has a better Operating Margin (45.73%) than 100.00% 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 56.76%, MDO is in line with its industry, outperforming 58.18% 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 | 45.73% | ||
| PM (TTM) | 31.72% | ||
| GM | 56.76% |
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.
The number of shares outstanding for MDO has been reduced compared to 1 year ago.
The number of shares outstanding for MDO has been reduced compared to 5 years ago.
Compared to 1 year ago, MDO has about the same debt to assets ratio.
2.2 Solvency
MDO has an Altman-Z score of 5.20. This indicates that MDO is financially healthy and has little risk of bankruptcy at the moment.
MDO has a better Altman-Z score (5.20) than 90.91% of its industry peers.
The Debt to FCF ratio of MDO is 6.03, which is on the high side as it means it would take MDO, 6.03 years of fcf income to pay off all of its debts.
MDO's Debt to FCF ratio of 6.03 is fine compared to the rest of the industry. MDO outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 5.2 |
ROIC/WACC2.15
WACC8.59%
2.3 Liquidity
MDO has a Current Ratio of 1.19. 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 1.19 is fine compared to the rest of the industry. MDO outperforms 74.55% of its industry peers.
A Quick Ratio of 1.18 indicates that MDO should not have too much problems paying its short term obligations.
MDO has a Quick ratio of 1.18. This is in the better half of the industry: MDO outperforms 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for MDO have decreased by -1.76% in the last year.
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 1.67% 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)-1.76%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-4.07%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-0.28%
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 10.11% on average per year.
MDO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.94% yearly.
EPS Next Y6.11%
EPS Next 2Y7.22%
EPS Next 3Y8.13%
EPS Next 5Y10.11%
Revenue Next Year1.92%
Revenue Next 2Y3.61%
Revenue Next 3Y4.55%
Revenue Next 5Y5.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 27.12, MDO can be considered very expensive at the moment.
MDO's Price/Earnings is on the same level as the industry average.
MDO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 25.55, MDO can be considered very expensive at the moment.
MDO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MDO to the average of the S&P500 Index (22.10), we can say MDO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 25.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDO indicates a slightly more expensive valuation: MDO is more expensive than 65.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.05 | ||
| EV/EBITDA | 19.1 |
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.
The excellent profitability rating of MDO may justify a higher PE ratio.
PEG (NY)4.44
PEG (5Y)3.31
EPS Next 2Y7.22%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
MDO has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
MDO's Dividend Yield is a higher than the industry average which is at 2.93.
MDO's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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
59.23% of the earnings are spent on dividend by MDO. This is a bit on the high side, but may be sustainable.
The dividend of MDO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.23%
EPS Next 2Y7.22%
EPS Next 3Y8.13%
FRA:MDO (3/7/2025, 7:00:00 PM)
292.95
+6.65 (+2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap209.30B
Analysts77.73
Price Target322.14 (9.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend6.24
Dividend Growth(5Y)7.43%
DP59.23%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.64%
Min EPS beat(2)-1.13%
Max EPS beat(2)-0.14%
EPS beat(4)0
Avg EPS beat(4)-1.78%
Min EPS beat(4)-4.24%
Max EPS beat(4)-0.14%
EPS beat(8)4
Avg EPS beat(8)3.23%
EPS beat(12)8
Avg EPS beat(12)3.3%
EPS beat(16)11
Avg EPS beat(16)3.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-0.22%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)-0.22%
Revenue beat(8)3
Avg Revenue beat(8)0.08%
Revenue beat(12)6
Avg Revenue beat(12)0.34%
Revenue beat(16)9
Avg Revenue beat(16)0.59%
PT rev (1m)3.74%
PT rev (3m)2.14%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-2.24%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 25.55 | ||
| P/S | 8.77 | ||
| P/FCF | 34.05 | ||
| P/OCF | 24.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.1 |
EPS(TTM)10.8
EY3.69%
EPS(NY)11.46
Fwd EY3.91%
FCF(TTM)8.6
FCFY2.94%
OCF(TTM)12.18
OCFY4.16%
SpS33.42
BVpS-4.9
TBVpS-8.95
PEG (NY)4.44
PEG (5Y)3.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.9% | ||
| ROE | N/A | ||
| ROCE | 23.09% | ||
| ROIC | 18.47% | ||
| ROICexc | 18.87% | ||
| ROICexgc | 20.13% | ||
| OM | 45.73% | ||
| PM (TTM) | 31.72% | ||
| GM | 56.76% | ||
| FCFM | 25.74% |
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)19.5%
ROCE(3y)23.04%
ROCE(5y)20.89%
ROICexcg growth 3Y2.6%
ROICexcg 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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 2.88 | ||
| Cap/Depr | 132.33% | ||
| Cap/Sales | 10.71% | ||
| Interest Coverage | 7.78 | ||
| Cash Conversion | 67.73% | ||
| Profit Quality | 81.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 5.2 |
F-Score6
WACC8.59%
ROIC/WACC2.15
Cap/Depr(3y)117.68%
Cap/Depr(5y)111.18%
Cap/Sales(3y)9.38%
Cap/Sales(5y)9.09%
Profit Quality(3y)85.22%
Profit Quality(5y)89.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.76%
EPS 3Y8.12%
EPS 5Y8.2%
EPS Q2Q%-4.07%
EPS Next Y6.11%
EPS Next 2Y7.22%
EPS Next 3Y8.13%
EPS Next 5Y10.11%
Revenue 1Y (TTM)1.67%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%-0.28%
Revenue Next Year1.92%
Revenue Next 2Y3.61%
Revenue Next 3Y4.55%
Revenue Next 5Y5.94%
EBIT growth 1Y0.91%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year22.1%
EBIT Next 3Y11.81%
EBIT Next 5Y9.87%
FCF growth 1Y-8.02%
FCF growth 3Y-2.05%
FCF growth 5Y3.1%
OCF growth 1Y-1.71%
OCF growth 3Y1.11%
OCF growth 5Y3.07%