MCDONALD'S CORP (MDO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MDO - US5801351017 - Common Stock
270.25 EUR
-1 (-0.37%)
MDO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 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
In the past year MDO was profitable.
In the past year MDO had a positive cash flow from operations.
In the past 5 years MDO has always been profitable.
MDO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.88%, MDO belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
MDO has a better Return On Invested Capital (17.77%) than 81.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDO is above the industry average of 13.71%.
| 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 96.72% of its industry peers.
MDO's Profit Margin has improved in the last couple of years.
The Operating Margin of MDO (46.12%) is better than 96.72% of its industry peers.
MDO's Operating Margin has improved in the last couple of years.
MDO's Gross Margin of 57.43% is fine compared to the rest of the industry. MDO outperforms 62.30% 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
MDO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MDO has been reduced compared to 1 year ago.
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 4.86. 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 4.86, MDO belongs to the top of the industry, outperforming 90.16% 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.
With a Debt to FCF ratio value of 5.60, MDO perfoms like the industry average, outperforming 55.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.86 |
ROIC/WACC2.22
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.00 indicates that MDO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, MDO is in line with its industry, outperforming 57.38% 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.
With a decent Quick ratio value of 0.99, MDO is doing good in the industry, outperforming 60.66% 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.
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.
Looking at the last year, MDO shows a small growth in Revenue. The Revenue has grown by 1.26% in the last 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.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y4.44%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
EPS Next 5Y10.93%
Revenue Next Year2.58%
Revenue Next 2Y4.08%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
MDO is valuated quite expensively with a Price/Earnings ratio of 26.57.
Compared to the rest of the industry, the Price/Earnings ratio of MDO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MDO to the average of the S&P500 Index (26.39), we can say MDO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.67, the valuation of MDO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, MDO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 23.67 |
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 62.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.57 | ||
| EV/EBITDA | 18.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MDO may justify a higher PE ratio.
PEG (NY)5.98
PEG (5Y)3.24
EPS Next 2Y6.77%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, MDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.40, MDO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, MDO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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.
MDO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.13%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
FRA:MDO (12/22/2025, 5:15:28 PM)
270.25
-1 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap192.46B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target293.24 (8.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend5.78
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)-1.23%
PT rev (3m)0.12%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 23.67 | ||
| P/S | 8.58 | ||
| P/FCF | 30.57 | ||
| P/OCF | 21.49 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.55 |
EPS(TTM)10.17
EY3.76%
EPS(NY)11.42
Fwd EY4.22%
FCF(TTM)8.84
FCFY3.27%
OCF(TTM)12.57
OCFY4.65%
SpS31.49
BVpS-2.59
TBVpS-6.56
PEG (NY)5.98
PEG (5Y)3.24
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 | 4.86 |
F-Score7
WACC8.02%
ROIC/WACC2.22
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 Y4.44%
EPS Next 2Y6.77%
EPS Next 3Y7.49%
EPS Next 5Y10.93%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.58%
Revenue Next 2Y4.08%
Revenue Next 3Y4.44%
Revenue Next 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.72%
EBIT Next 3Y11.49%
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 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.
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 26.57 and the Price/Book (PB) ratio is -104.21.
Is the dividend of MCDONALD'S CORP sustainable?
The dividend rating of MCDONALD'S CORP (MDO.DE) is 6 / 10 and the dividend payout ratio is 60.13%.