McDonald's Corporation Fundamental Analysis (XETRA: MDO.DE)
McDonald's Corporation (XETRA: MDO.DE) shows moderate financial fundamentals with a PE ratio of 21.87, profit margin of 31.72%, and ROE of -5.61%. The company generates $27.8B in annual revenue with moderate year-over-year growth of 3.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MDO.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMDO.DE demonstrates superior asset utilization.
Valuation Score
ModerateMDO.DE shows balanced valuation metrics.
Growth Score
WeakMDO.DE faces weak or negative growth trends.
Financial Health Score
ExcellentMDO.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateMDO.DE maintains healthy but balanced margins.
Key Financial Metrics
Is MDO.DE Expensive or Cheap?
P/E Ratio
MDO.DE trades at 21.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MDO.DE's PEG of 3.60 indicates potential overvaluation.
Price to Book
The market values McDonald's Corporation at -186.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.48 times EBITDA. This is generally considered low.
How Well Does MDO.DE Make Money?
Net Profit Margin
For every $100 in sales, McDonald's Corporation keeps $31.72 as profit after all expenses.
Operating Margin
Core operations generate 45.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.61 in profit for every $100 of shareholder equity.
ROA
McDonald's Corporation generates $14.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
McDonald's Corporation generates strong operating cash flow of $11.38B, reflecting robust business health.
Free Cash Flow
McDonald's Corporation generates strong free cash flow of $7.79B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.96 in free cash annually.
FCF Yield
MDO.DE converts 4.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
-186.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-53.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-5.61
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How MDO.DE Stacks Against Its Sector Peers
| Metric | MDO.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.87 | 25.50 | Better (Cheaper) |
| ROE | -561.25% | 964.00% | Weak |
| Net Margin | 31.72% | -4901.00% (disorted) | Strong |
| Debt/Equity | -53.42 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 1.08 | 2.34 | Neutral |
| ROA | 14.65% | 322.00% | Weak |
MDO.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews McDonald's Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.09%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
88.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
75.77%
Industry Style: Cyclical, Growth, Discretionary
High Growth