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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chipotle Mexican Grill, Inc.

Texas Roadhouse, Inc.

Darden Restaurants, Inc.

Aramark

Yum China Holdings, Inc.

The Wendy's Co.

McDonald's Corp.

Yum! Brands, Inc.

Domino's Pizza, Inc.

Starbucks Corp.

Wingstop, Inc.

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 4.49%, 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.

4.56%

1.15

18.49%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.24%

EBIT Growth (5y)

10.15%

EBIT to Interest (avg)

7.66

Debt to EBITDA (avg)

2.90

Net Debt to Equity (avg)

-11.10

Sales to Capital Employed (avg)

0.74

Tax Ratio

20.49%

Dividend Payout Ratio

59.52%

Pledged Shares

Institutional Holding

77.00%

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

-144.91

EV to EBIT

45.67

EV to EBITDA

38.75

EV to Capital Employed

15.44

EV to Sales

20.96

PEG Ratio

16.25

Dividend Yield

101.63%

ROCE (Latest)

33.81%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Bullish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 9,793 MM

DEBT-EQUITY RATIO (HY)

Lowest at -1,956.2 %

DIVIDEND PER SHARE(HY)

Highest at USD 10.52

RAW MATERIAL COST(Y)

Fallen by -3.1% (YoY

OPERATING PROFIT(Q)

Highest at USD 3,799 MM

OPERATING PROFIT MARGIN(Q)

Highest at 55.52 %

PRE-TAX PROFIT(Q)

Highest at USD 4,365 MM

NET PROFIT(Q)

Highest at USD 3,437.38 MM

EPS(Q)

Highest at USD 3.14

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.52 times

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

Operating Cash Flow

Highest at USD 9,793 MM and Grown

In each year 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 -1,956.2 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at USD 10.52 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 3,799 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 55.52 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 4,365 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 4,365 MM has Grown at 55.96%

over average net sales of the previous four periods of USD 2,798.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 3,437.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 3,437.38 MM has Grown at 54.39%

over average net sales of the previous four periods of USD 2,226.42 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 3.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -3.1% (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.

Debtors Turnover Ratio

Lowest at 10.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.53 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income