McDonalds Buy or Sell Recommendation

Macroaxis provides McDonalds Corporation buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding McDonalds positions. The advice algorithm takes into account all of McDonalds Corporation available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from McDonalds buy-and-hold prospective. Please see also McDonalds Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus

Investment Horizon

  

Risk Tolerance

  
Symbol
Execute Advice
McDonalds Corporation -- USA Stock  

USD 169.11  0.06  0.0355%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding McDonalds Corporation is 'Strong Buy'.
For the selected time horizon McDonalds Corporation has a risk adjusted performance of 0.0806, jensen alpha of 0.1065, total risk alpha of 0.0731, sortino ratio of 0.1077 and treynor ratio of 0.1329
Macroaxis provides buy or sell recommendations on McDonalds to complement and cross-verify current analyst consensus on McDonalds. Our advice engine determines the firm potential to grow exclusively from the prospective of investors current risk tolerance and investing horizon. To make sure McDonalds is not overpriced, please verify all McDonalds Corporation fundamentals including its Shares Outstanding, Price to Sales, Cash per Share, as well as the relationship between Number of Shares Shorted and EBITDA . Given that McDonalds has Price to Earning of 27.67 times, we recommend you check McDonalds market performance and probability of bankruptcy to make sure the company can sustain itself for the next few years given your last-minute risk tolerance and investing horizon.

Returns Distribution Density

Mean Return0.15Value At Risk0.84
Potential Upside1.04Standard Deviation0.7
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Vanguard Group IncCommon Shares57.9 M9.1 B
Blackrock IncCommon Shares55.1 M8.6 B
State Street CorpCommon Shares40.3 M6.3 B
Capital World InvestorsCommon Shares22.8 M3.6 B
Bank Of America CorpCommon Shares15.4 M2.4 B
Northern Trust CorpCommon Shares12.1 M1.9 B
Capital Research Global InvestorsCommon Shares12.1 M1.9 B

McDonalds Greeks

α
Alpha over DOW
=0.11
βBeta against DOW=1.09
σ
Overall volatility
=0.7
 IrInformation ratio =0.16

McDonalds Volatility Alert

McDonalds Corporation has relatively low volatility with skewness of -1.14 and kurtosis of 1.57. However, we advise all investors to independently investigate McDonalds Corporation to ensure market all accessible information is consistent with the expectations about its upside potential and future risk-adjusted return.
    
 Better Than Average     
    
 Worse Than Average Compare McDonalds to competition
FundamentalsMcDonaldsPeer Average
Return On Equity521.4 % (15.17) %
Return On Asset15.52 % (15.64) %
Profit Margin21 % (5.5) %
Operating Margin33.85 % (10.91) %
Current Valuation162.14 B152.14 B
Shares Outstanding797.19 M1.43 B
Shares Owned by Insiders0.06 % 6.91 %
Shares Owned by Institutions68.68 % 18.37 %
Number of Shares Shorted8.63 M3.24 M
Price to Earning27.67 times40.69 times
Price to Book159.27 times14.44 times
Price to Sales5.57 times17.81 times
Revenue24.18 B9.85 B
Gross Profit10.2 B21.75 B
EBITDA9.6 B1.41 B
Net Income5.08 B517.71 M
Cash and Equivalents2.39 B3.89 B
Cash per Share2.95 times5.17 times
Total Debt28.36 B7.36 B
Debt to Equity4.35 % 0.72 %
Current Ratio2.15 times3.3 times
Book Value Per Share(2.47) times13.64 times
Cash Flow from Operations5.82 B1.25 B
Short Ratio2.53 times2.09 times
Earnings Per Share6.11 times2.3 times
Price to Earnings To Growth2.86 times1.22 times
Number of Employees420 K10.67 K
Beta0.820.34
Market Capitalization134.76 B29.78 B
Total Asset37.94 B126.86 B
Retained Earnings44.59 B38.24 B
Working Capital6.69 B3.58 B
Current Asset9.64 B36.8 B
SellBuy
Strong Buy

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

   McDonalds exotic insider transaction detected [view details]
Risk Adjusted Performance0.0806
Market Risk Adjusted Performance0.1429
Mean Deviation0.536
Semi Deviation0.6897
Downside Deviation1.02
Coefficient Of Variation455.32
Standard Deviation0.7032
Variance0.4945
Information Ratio0.1558
Jensen Alpha0.1065
Total Risk Alpha0.0731
Sortino Ratio0.1077
Treynor Ratio0.1329
Maximum Drawdown2.86
Value At Risk(0.84)
Potential Upside1.04
Downside Variance1.04
Semi Variance0.4756
Expected Short fall(0.54)
Skewness(1.14)
Kurtosis1.57

Current Valuation

McDonalds Current Valuation Analysis
McDonalds Corporation is regarded second in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Restaurants industry is now estimated at about 387.57 Billion. McDonalds totals roughly 162.14 Billion in current valuation claiming about 42% of equities listed under Restaurants industry.