McDonald's Holdings Co. (Japan) Ltd. (2702) 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

McDonald's Holdings Co. (Japan) Ltd.

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Why is McDonald's Holdings Co. (Japan) Ltd. ?

High Management Efficiency with a high ROE of 11.91%

Company has very low debt and has enough cash to service the debt requirements

With a growth in Net Profit of 59.07%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 13.86%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -19.12% (YoY)

With ROE of 12.27%, it has a fair valuation with a 3.81 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 20.17%, its profits have risen by 5.7% ; the PEG ratio of the company is 5.4

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to McDonald's Holdings Co. (Japan) Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is McDonald's Holdings Co. (Japan) Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

McDonald's Holdings Co. (Japan) Ltd.

21.04%

619.10

23.17%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.64%

EBIT Growth (5y)

11.14%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.60

Tax Ratio

31.21%

Dividend Payout Ratio

21.96%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

24.49%

ROE (avg)

11.91%

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

3.81

EV to EBIT

18.67

EV to EBITDA

13.89

EV to Capital Employed

4.80

EV to Sales

2.39

PEG Ratio

5.43

Dividend Yield

ROCE (Latest)

25.71%

ROE (Latest)

12.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

12What is working for the Company

ROCE(HY)

Highest at 13.86%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -19.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 261.61 times

DEBTORS TURNOVER RATIO(HY)

Highest at 15 times

OPERATING PROFIT(Q)

Highest at JPY 21,358 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.54 %

PRE-TAX PROFIT(Q)

Highest at JPY 16,790 MM

NET PROFIT(Q)

Highest at JPY 11,021.38 MM

EPS(Q)

Highest at JPY 82.75

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for McDonald's Holdings Co. (Japan) Ltd.

Operating Profit

Highest at JPY 21,358 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 20.54 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 16,790 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 11,021.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 82.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 261.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -19.12% (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

Depreciation

Highest at JPY 4,718 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)