MCDONALD'S CORP (1MCD.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCD - US5801351017 - Common Stock
257.15 EUR
-0.35 (-0.14%)
Taking everything into account, 1MCD scores 6 out of 10 in our fundamental rating. 1MCD was compared to 58 industry peers in the Hotels, Restaurants & Leisure industry. 1MCD has an excellent profitability rating, but there are some minor concerns on its financial health. 1MCD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MCD was profitable.
1MCD had a positive operating cash flow in the past year.
In the past 5 years 1MCD has always been profitable.
Each year in the past 5 years 1MCD had a positive operating cash flow.
1.2 Ratios
1MCD has a Return On Assets of 13.88%. This is amongst the best in the industry. 1MCD outperforms 91.38% of its industry peers.
The Return On Invested Capital of 1MCD (17.77%) is better than 84.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MCD is significantly above the industry average of 13.09%.
| 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
1MCD has a better Profit Margin (32.04%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of 1MCD has grown nicely.
1MCD has a better Operating Margin (46.12%) than 100.00% of its industry peers.
1MCD's Operating Margin has improved in the last couple of years.
The Gross Margin of 1MCD (57.43%) is better than 60.34% of its industry peers.
1MCD's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MCD is creating value.
Compared to 1 year ago, 1MCD has less shares outstanding
1MCD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1MCD has remained at the same level compared to a year ago.
2.2 Solvency
1MCD has an Altman-Z score of 4.75. This indicates that 1MCD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MCD (4.75) is better than 87.93% of its industry peers.
The Debt to FCF ratio of 1MCD is 5.60, which is a neutral value as it means it would take 1MCD, 5.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1MCD (5.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 4.75 |
ROIC/WACC2.24
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1MCD should not have too much problems paying its short term obligations.
1MCD has a Current ratio (1.00) which is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that 1MCD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, 1MCD is in the better half of the industry, outperforming 60.34% 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.
1MCD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
The Revenue has been growing slightly by 1.26% in the past year.
The Revenue has been growing slightly by 3.94% on average over the past years.
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.
Based on estimates for the next years, 1MCD will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y10.93%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
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
With a Price/Earnings ratio of 25.36, 1MCD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1MCD indicates a somewhat cheap valuation: 1MCD is cheaper than 60.34% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1MCD to the average of the S&P500 Index (27.17), we can say 1MCD is valued inline with the index average.
The Price/Forward Earnings ratio is 22.62, which indicates a rather expensive current valuation of 1MCD.
1MCD's Price/Forward Earnings ratio is in line with the industry average.
1MCD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.36 | ||
| Fwd PE | 22.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MCD.
Based on the Price/Free Cash Flow ratio, 1MCD is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 17.78 |
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 1MCD may justify a higher PE ratio.
PEG (NY)5.78
PEG (5Y)3.09
EPS Next 2Y6.71%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, 1MCD has a reasonable but not impressive dividend return.
1MCD's Dividend Yield is a higher than the industry average which is at 1.26.
1MCD's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
On average, the dividend of 1MCD grows each year by 7.43%, which is quite nice.
Dividend Growth(5Y)7.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MCD pays out 60.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.13%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
BIT:1MCD (1/5/2026, 7:00:00 PM)
257.15
-0.35 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners74.96%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap183.13B
Revenue(TTM)26.27B
Net Income(TTM)8.41B
Analysts71.63
Price Target292.03 (13.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend5.76
Dividend Growth(5Y)7.43%
DP60.13%
Div Incr Years0
Div Non Decr Years0
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)0.19%
PT rev (3m)-0.75%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.36 | ||
| Fwd PE | 22.62 | ||
| P/S | 8.19 | ||
| P/FCF | 29.18 | ||
| P/OCF | 20.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.78 |
EPS(TTM)10.14
EY3.94%
EPS(NY)11.37
Fwd EY4.42%
FCF(TTM)8.81
FCFY3.43%
OCF(TTM)12.53
OCFY4.87%
SpS31.39
BVpS-2.58
TBVpS-6.54
PEG (NY)5.78
PEG (5Y)3.09
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 | 4.75 |
F-Score7
WACC7.94%
ROIC/WACC2.24
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 Y4.38%
EPS Next 2Y6.71%
EPS Next 3Y7.35%
EPS Next 5Y10.93%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.94%
Sales Q2Q%2.98%
Revenue Next Year2.57%
Revenue Next 2Y4.05%
Revenue Next 3Y4.41%
Revenue Next 5Y5.81%
EBIT growth 1Y2.6%
EBIT growth 3Y6.28%
EBIT growth 5Y5.78%
EBIT Next Year21.71%
EBIT Next 3Y11.38%
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 / 1MCD.MI FAQ
What is the fundamental rating for 1MCD stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MCD.MI.
What is the valuation status for 1MCD stock?
ChartMill assigns a valuation rating of 2 / 10 to MCDONALD'S CORP (1MCD.MI). This can be considered as Overvalued.
What is the profitability of 1MCD stock?
MCDONALD'S CORP (1MCD.MI) 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 (1MCD.MI) is 25.36 and the Price/Book (PB) ratio is -99.48.
What is the earnings growth outlook for MCDONALD'S CORP?
The Earnings per Share (EPS) of MCDONALD'S CORP (1MCD.MI) is expected to grow by 4.38% in the next year.