McDonald's Corp. (MCD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Texas Roadhouse, Inc.

Aramark

Darden Restaurants, Inc.

Chipotle Mexican Grill, Inc.

Yum China Holdings, Inc.

Yum! Brands, Inc.

McDonald's Corp.

Domino's Pizza, Inc.

Starbucks Corp.

Wingstop, Inc.

The Wendy's Co.

Why is McDonald's Corp. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 10.15% of over the last 5 years

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 4.60%, its profits have risen by 2.4% ; the PEG ratio of the company is 16.3

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is McDonald's Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

McDonald's Corp.

-6.17%

1.20

18.38%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.96%

EBIT Growth (5y)

11.59%

EBIT to Interest (avg)

7.66

Debt to EBITDA (avg)

2.90

Net Debt to Equity (avg)

-11.10

Sales to Capital Employed (avg)

0.72

Tax Ratio

20.49%

Dividend Payout Ratio

59.99%

Pledged Shares

Institutional Holding

76.52%

ROCE (avg)

34.86%

ROE (avg)

833,777.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-277.50

EV to EBIT

43.30

EV to EBITDA

36.77

EV to Capital Employed

14.08

EV to Sales

19.96

PEG Ratio

1.62

Dividend Yield

132.48%

ROCE (Latest)

32.53%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 10,535 MM

DIVIDEND PER SHARE(HY)

Highest at USD 11.39

RAW MATERIAL COST(Y)

Fallen by -0.29% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -4,176.59 %

-6What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 1,944 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 53 %

PRE-TAX PROFIT(Q)

Lowest at USD 2,583 MM

NET PROFIT(Q)

Lowest at USD 2,014.98 MM

Here's what is working for McDonald's Corp.

Dividend per share

Highest at USD 11.39 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 10,535 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -4,176.59 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for McDonald's Corp.

Operating Profit Margin

Lowest at 53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 2,583 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 2,583 MM has Fallen at -21.73%

over average net sales of the previous four periods of USD 3,300 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 2,014.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

At USD 2,014.98 MM has Fallen at -22.4%

over average net sales of the previous four periods of USD 2,596.61 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 1,944 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents