McDonalds Piotroski F Score

MCD Stock

USD 271.33 1.71 0.63%

This module uses fundamental data of McDonalds to approximate its Piotroski F score. McDonalds F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of McDonalds. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about McDonalds financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out McDonalds Altman Z Score, McDonalds Correlation, McDonalds Valuation, as well as analyze McDonalds Alpha and Beta and McDonalds Hype Analysis. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.

McDonalds Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 1.2 Billion. The current year Long Term Debt to Equity is expected to grow to 3.31, whereas Debt Non Current is forecasted to decline to about 43.5 B. McDonalds Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 3.06. The current year Calculated Tax Rate is expected to grow to 28.07, whereas Operating Margin is forecasted to decline to 35.44.

At this time, it appears that McDonalds' Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..

5.0

Piotroski F Score - Healthy

Current Return On Assets

Positive

Focus

Change in Return on Assets

Decreased

Focus

Cash Flow Return on Assets

Positive

Focus

Current Quality of Earnings (accrual)

Improving

Focus

Asset Turnover Growth

Increase

Focus

Current Ratio Change

Decrease

Focus

Long Term Debt Over Assets Change

Lower Leverage

Focus

Change In Outstending Shares

Increase

Focus

Change in Gross Margin

No Change

Focus

McDonalds Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to McDonalds is to make sure McDonalds is not a subject of accounting manipulations and runs a healthy internal audit department. So, if McDonalds' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if McDonalds' financial numbers are properly reported.

Current Value

Last Year

Change From Last Year

10 Year Trend

Weighted Average Shares Diluted

751 M

741.3 M

Fairly Up

Down

Slightly volatile

Weighted Average Shares

745.7 M

736.5 M

Fairly Up

Down

Slightly volatile

Return on Average Assets

0.12

0.124

Sufficiently Down

Down

Slightly volatile

Net Cash Flow from Operations

7.9 B

7.4 B

Notably Up

Slightly volatile

Current Liabilities

4.1 B

3.8 B

Notably Up

Slightly volatile

Total Liabilities

52.5 B

56.4 B

Significantly Down

Slightly volatile

Gross Margin

0.58

Steady

Slightly volatile

Total Debt

44.1 B

48.7 B

Moderately Down

Slightly volatile

Asset Turnover

0.51

0.466

Significantly Up

Down

Slightly volatile

Current Assets

6 B

5.4 B

Moderately Up

Pretty Stable

Total Assets

50 B

50.4 B

Slightly Down

Slightly volatile

McDonalds F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between McDonalds' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards McDonalds in a much-optimized way.

About McDonalds Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

745.68 Million

McDonalds Weighted Average Shares is projected to decrease significantly based on the last few years of reporting. The past year's Weighted Average Shares was at 736.5 Million

McDonalds Current Valuation Drivers

We derive many important indicators used in calculating different scores of McDonalds from analyzing McDonalds' financial statements. These drivers represent accounts that assess McDonalds' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of McDonalds' important valuation drivers and their relationship over time.

	2018	2019	2020	2021	2022	2023 (projected)
Net Income Per Employee	28.21 K	29.39 K	23.59 K	37.73 K	41.18 K	44.43 K
Revenue Per Employee	100.12 K	102.81 K	95.78 K	116.11 K	154.55 K	166.75 K
Average Assets	33.32 B	46.5 B	50.96 B	52.39 B	49.77 B	49.25 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA	10.28 B	10.76 B	9.11 B	12.18 B	10.9 B	11.64 B
Earnings Before Interest Taxes and Depreciation Amortization USD	10.28 B	10.76 B	9.11 B	12.18 B	10.9 B	11.64 B
Earnings before Tax	7.82 B	8.02 B	6.14 B	9.13 B	7.83 B	8.57 B
Average Equity	(5.91 B)	(7.54 B)	(8.76 B)	(5.83 B)	(6.23 B)	(6.4 B)
Enterprise Value	166.21 B	193.08 B	207.49 B	244.82 B	237.48 B	218.23 B
Free Cash Flow	4.39 B	5.88 B	4.65 B	7.21 B	5.53 B	5.71 B
Invested Capital	57.72 B	87.87 B	91.69 B	91.69 B	89.85 B	83.99 B
Invested Capital Average	57.19 B	84.86 B	90.14 B	90.7 B	88.62 B	82.37 B
Market Capitalization	136.89 B	148.82 B	159.89 B	200.31 B	193.02 B	178.53 B
Tangible Asset Value	30.48 B	44.83 B	49.85 B	51.07 B	47.54 B	46.97 B
Working Capital	1.08 B	(63.1 M)	62 M	3.13 B	1.62 B	1.66 B

McDonalds ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, McDonalds' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McDonalds' managers, analysts, and investors.

Environment Score

Governance Score

Social Score

About McDonalds Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze McDonalds's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McDonalds using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McDonalds based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally. McDonalds Corporation was founded in 1940 and is headquartered in Chicago, Illinois. McDonalds Corp operates under Restaurants classification in the United States and is traded on New York Stock Exchange. It employs 100000 people.

McDonalds Investors Sentiment

The influence of McDonalds' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in McDonalds. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to McDonalds' public news can be used to forecast risks associated with investment in McDonalds. The trend in average sentiment can be used to explain how an investor holding McDonalds can time the market purely based on public headlines and social activities around McDonalds. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

McDonalds' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for McDonalds' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average McDonalds' news discussions. The higher the estimated score, the more favorable is the investor's outlook on McDonalds.

McDonalds Implied Volatility

19.9

McDonalds' implied volatility exposes the market's sentiment of McDonalds stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McDonalds' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that McDonalds stock will not fluctuate a lot when McDonalds' options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards McDonalds in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, McDonalds' short interest history, or implied volatility extrapolated from McDonalds options trading.

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Check out McDonalds Altman Z Score, McDonalds Correlation, McDonalds Valuation, as well as analyze McDonalds Alpha and Beta and McDonalds Hype Analysis. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide. Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for McDonalds Stock analysis

When running McDonalds price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.

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Is McDonalds' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.186

Dividend Share

5.66

Earnings Share

8.38

Revenue Per Share

31.477

Quarterly Revenue Growth

(0.014)

The market value of McDonalds is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds' value that differs from its market value or its book value, called intrinsic value, which is McDonalds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds' market value can be influenced by many factors that don't directly affect McDonalds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between McDonalds' value and its price as these two are different measures arrived at by different means. Investors typically determine McDonalds value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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	Return on Average Assets	Asset Turnover	Gross Margin	Total Debt	Total Liabilities	Current Liabilities	Total Assets	Current Assets	Net Cash Flow from Operations
Return on Average Assets		0.67	-0.42	-0.64	-0.63	-0.71	-0.7	-0.34	-0.06
Asset Turnover	0.67		-0.91	-0.98	-0.98	-0.69	-0.9	-0.13	-0.47
Gross Margin	-0.42	-0.91		0.93	0.93	0.49	0.79	0.0	0.51
Total Debt	-0.64	-0.98	0.93		1.0	0.64	0.86	0.17	0.43
Total Liabilities	-0.63	-0.98	0.93	1.0		0.64	0.86	0.17	0.43
Current Liabilities	-0.71	-0.69	0.49	0.64	0.64		0.72	0.17	0.12
Total Assets	-0.7	-0.9	0.79	0.86	0.86	0.72		0.3	0.63
Current Assets	-0.34	-0.13	0.0	0.17	0.17	0.17	0.3		0.04
Net Cash Flow from Operations	-0.06	-0.47	0.51	0.43	0.43	0.12	0.63	0.04

McDonalds Piotroski F Score

McDonalds Piotroski F Score Drivers

McDonalds F Score Driver Matrix

About McDonalds Piotroski F Score

Weighted Average Shares

745.68 Million

McDonalds Current Valuation Drivers

McDonalds ESG Sustainability

About McDonalds Fundamental Analysis

McDonalds Investors Sentiment

McDonalds Implied Volatility

Becoming a Better Investor with Macroaxis

Build Optimal Portfolios

Align your risk with return expectations

Complementary Tools for McDonalds Stock analysis

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