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

FOOD & LIFE COMPANIES LTD.

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

Flat results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 749,950
OPERATING PROFIT(Q) Lowest at JPY 14,999 MM
OPERATING PROFIT MARGIN(Q) Lowest at 14.38 %

With ROE of 13.05%, it has a attractive valuation with a 3.14 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 38.68%, its profits have risen by 19.8% ; the PEG ratio of the company is 1.2

Real-Time Research Report

Verdict Report

How much should you hold?

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.

38.68%

963.28

16.59%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.29%

EBIT Growth (5y)

12.85%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.64

Tax Ratio

31.21%

Dividend Payout Ratio

20.38%

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

3.14

EV to EBIT

15.25

EV to EBITDA

11.22

EV to Capital Employed

3.75

EV to Sales

1.83

PEG Ratio

1.22

Dividend Yield

ROCE (Latest)

24.60%

ROE (Latest)

13.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Mildly 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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.4% (YoY

CASH AND EQV(HY)

Highest at JPY 143,558 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 14.73

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 749,950

OPERATING PROFIT(Q)

Lowest at JPY 14,999 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.38 %

PRE-TAX PROFIT(Q)

Lowest at JPY 9,164 MM

NET PROFIT(Q)

Lowest at JPY 7,164.07 MM

EPS(Q)

Lowest at JPY 52.03

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

Cash and Eqv

Highest at JPY 143,558 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 14.73

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.4% (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 Holdings Co. (Japan) Ltd.

Interest Coverage Ratio

Lowest at 749,950

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 14,999 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 14.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 9,164 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 9,164 MM has Fallen at -28.83%

over average net sales of the previous four periods of JPY 12,877 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 7,164.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 52.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)