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

Time Horizon

Risk Tolerance

Symbol
Execute Advice
McDonalds Corporation -- USA Stock  

USD 157.79  2.99  1.86%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding McDonalds Corporation is 'Strong Hold'.
For the selected time horizon McDonalds Corporation has a risk adjusted performance of 0.49, jensen alpha of 0.35, total risk alpha of 0.33, sortino ratio of 0.0 and treynor ratio of 0.62
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 25.25 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 Return0.45Value At Risk3.26
Potential Upside1.54Standard Deviation1.55
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Vanguard Group IncCommon Shares58 M10 B
Blackrock IncCommon Shares55.5 M9.6 B
State Street CorpCommon Shares40.7 M7 B
Capital World InvestorsCommon Shares22 M3.8 B
Fmr LlcCommon Shares14.1 M2.4 B
Bank Of America CorpCommon Shares13.4 M2.3 B
Northern Trust CorpCommon Shares11.8 M2 B

McDonalds Greeks

α
Alpha over DOW
=0.35
β
Beta against DOW=0.74
σ
Overall volatility
=1.56
Ir
Information ratio =0.21

McDonalds Volatility Alert

McDonalds Corporation exhibits very low volatility with skewness of -0.82 and kurtosis of 0.25. However, we advise investors to further study McDonalds Corporation technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare McDonalds to competition
FundamentalsMcDonaldsPeer Average
Return On Equity521.40 % (15.17) %
Return On Asset15.80 % (15.64) %
Profit Margin22.75 % (5.50) %
Operating Margin36.61 % (10.91) %
Current Valuation153.49 B152.14 B
Shares Outstanding797.19 M1.43 B
Shares Owned by Insiders0.06 % 6.91 %
Shares Owned by Institutions70.14 % 18.37 %
Number of Shares Shorted6.27 M3.24 M
Price to Earning25.25 times40.69 times
Price to Book159.27 times14.44 times
Price to Sales5.62 times17.81 times
Revenue22.82 B9.85 B
Gross Profit10.2 B21.75 B
EBITDA9.71 B1.41 B
Net Income5.19 B517.71 M
Cash and Equivalents2.67 B3.89 B
Cash per Share3.35 times5.17 times
Total Debt28.62 B7.36 B
Debt to Equity4.35 % 0.72 %
Current Ratio1.28 times3.30 times
Book Value Per Share4.36 times13.64 times
Cash Flow from Operations5.26 B1.25 B
Short Ratio1.97 times2.09 times
Earnings Per Share6.37 times2.30 times
Price to Earnings To Growth2.53 times1.22 times
Number of Employees420 K10.67 K
Beta0.690.34
Market Capitalization128.17 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 Hold

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

   Acquisition by Stratton Jeffrey P of 20743 shares of McDonalds subject to Rule 16b-3 [view details]
Risk Adjusted Performance0.49
Market Risk Adjusted Performance0.61
Mean Deviation1.2
Coefficient Of Variation348.11
Standard Deviation1.55
Variance2.42
Information Ratio0.21
Jensen Alpha0.35
Total Risk Alpha0.33
Treynor Ratio0.62
Maximum Drawdown5.6
Value At Risk3.26
Potential Upside1.54
Skewness0.82
Kurtosis0.2496

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 371.56 Billion. McDonalds totals roughly 153.49 Billion in current valuation claiming about 41% of equities listed under Restaurants industry.